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Indian Telecom Equipment Manufacturers Raise the Issue of Defiance by the Department of Telecommunications with Prime Minister

December 23, 2011 - New Delhi, Delhi, India

The Indian Telecom Equipment Manufacturers Association (TEMA) today in a communication to the Honorable Prime Minister, Government of India, Dr. Manmohan Singh and the Honorable Minster of Communications & IT Shri Kapil Sibal raised the issue of defiance by the Department of Telecommunications (DoT).

According to the communication sent to the Prime Minister’s Office (PMO) and Communications Minister’s Office, TEMA has raised the issue of slackness on the part of the Department of Telecommunications in terms of implementing the directions laid down in the National Telecom Policies of 1994 & 1999 relating to the local telecom equipment induction in the national telecom networks.

“Both the earlier National Telecom Policies of 1994 and 1999 had suggested the induction of indigenous telecom equipment manufactured by the Indian telecom equipment manufacturers which was endorsed by the Parliament of India are being held hostage by the officials of the Department of Telecommunication,” said Mr Ashok K. Aggarwal, Honorary Director General, Telecom Equipment Manufacturers Association. He further added that the draft NTP-2011 released recently also contains similar positive suggestions and directions. Mr. Aggarwal, however, expressed his deep concern and anguish that like the earlier policies of 1994 & 1999, the new policy which is on the anvil may also go unimplemented in the right spirit if the Government does not outline a strict time bound mechanism for implementing the same.

In its communiqué, TEMA has appreciated the statements made by the Honorable Prime Minister Dr. Manmohan Singh at various forms supporting the Indian telecom manufacturing sector. “Today the condition of domestic manufacturing sector is at a very dismal level as compared to the vast expansion of our telecom network which is dominated by the imported equipment, meaning thereby that at the current rupee-dollar exchange rate, our import bill will further increase, up-setting our economy. Therefore, it is in the interest of overall economy that the Government implements what has been suggested in the two NTPs, and now the draft NTP-2011” added Mr Aggarwal.

To bring up the domestic manufacturing industry from the dismal situation, the TEMA has suggested that:

-- Preferential treatment to be mandated for ‘Indian Products’ for which know-how, design control & product IPR resides in India;

-- Introduce R&D Cess on all Licensed Telecom Service Providers; Incentivize Service Providers by granting reduced contribution in graded manner on meeting yearly targets of purchasing “Indian Products;

In its communication TEMA has also suggested the Indian Government to take cognizance of this situation before it reaches an alarming proportion through continuous use of imported equipment and even increasing foreign exchange outgo from the country.

About TEMA

Established in 1990, Telecom Equipment Manufacturers’ Association of India (TEMA) is recognized by the Government of India as the National Apex body to represent telecom Technology Providers, Global and Indian, Private and Government owned companies.

TEMA plays the critical role of advising the government and influencing decisions relating to Indian telecom industry. TEMA also enjoys the privilege of proposing names of technical experts from the industry to various telecom committees of the Government of India and major national industry associations for valuable contributions at every stage of the evolving telecom manufacturing sector in the country. TEMA has membership of more than 100 members.

Source: Business Wire India


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