Global telecom gear makers wary of TRAI's recommendations on boosting indigenous manufacturing

Whereas home telecom gear makers have applauded regulator TRAI’s suggestions on boosting indigenous manufacturing of merchandise utilized in telecom networks, international firms say there’s little to cheer about.

International telecom firms, based on The Economic Times, imagine the Telecom Regulatory Authority of India’s (TRAI) plan to push native manufacturing is not going to be possible ‘in [the] absence of economies of scale and a supporting parts ecosystem.’

“If the federal government is severe about boosting indigenous telecom gear manufacturing, it must first incentivise part manufacturing in a giant approach in India in order that the price of regionally churning out completed telecom merchandise comes down,” a senior govt at a world telecom firm was quoted as saying by the newspaper.

The regulator’s suggestions – 18 in all – issued on three August are geared toward remodeling the telecom manufacturing sector from being “import-dependent” to a world hub of indigenous manufacturing. TRAI famous that whereas telecom providers have grown at a scorching tempo, telecom gear manufacturing has not stored up.

TRAI has advisable that India should goal to attain the target of ‘web zero imports of telecommunication gear’ by 2022.

Representational picture. ThinkStock.

“The Trai suggestions to advertise native telecom gear manufacturing is a welcome transfer by the regulator. The goal to make India web zero importer of telecom gear by 2022 is especially noteworthy,” Sanjeev Kakkar, vice chairman, Telecom System Design and Manufacturing, mentioned in a press release final week.

“It’s now crucial that these suggestions are carried out in true spirit for the advantage of the home producers and thereby the nation,” Kakkar mentioned.

The watchdog has favoured the creation of a Telecom Analysis and Improvement Fund with an preliminary corpus of Rs 1,000 crore to provide a fillip to analysis, innovation, design, testing, certification and manufacturing of indigenous telecom gear.

The regulator has additionally requested the Division of Telecom (DoT) to contemplate establishing a Telecom Entrepreneurship Promotion Fund (TEPF) and a Telecom Manufacturing Promotion Fund (TMPF). The suggestions additionally pitched for the creation of a Telecommunication Gear Improvement Board (TEDB) underneath the division for quicker determination making on funding and incentives.

TRAI has referred to as for the streamlining of permissions for trials or pilots of latest applied sciences or merchandise. “Alternate Dispute Decision Framework for time sure decision of patent licensing disputes ought to be institutionalised within the nation,” TRAI mentioned. Necessary testing and certification of telecom gear within the nation ought to be began on the earliest, it mentioned.

The regulator has advisable that the progress of indigenous telecommunication gear manufacturing within the nation be monitored within the Telecom Division no less than on the stage of the member, Telecom Fee.

“Of prime worth is TRAI’s suggestion that the native manufacturing be taken care of on the stage of a member in Telecom Fee. In actual fact, earlier Member Manufacturing was solely answerable for the promotion of native manufacturing. Telecom Gear Producers Affiliation of India (TEMA) requests that this publish be crammed up instantly,” NK Goyal, Chairman Emeritus, TEMA, mentioned final week.

With inputs from PTI

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