‘MTNL, BSNL won’t be privatised in the near future’

This is true of any business, anywhere in the world. The Cellular Operators Association of India have reported accumulated losses of Rs. 8,000 crores for cellular companies in India. Even with these losses, cellular companies are being forced to bring down tariff when faced with competition. The government’s job is to make policies that encourage even greater competition. Increased competition will lead to better services and reduced tariffs.

Why hasn’t internet telephony, despite its cheap rates, caught on?

Internet telephony depends on personal computer penetration. This is still quite low in India. Also, the rapid reduction in International Long Distance tariff has reduced the incentive for internet telephony to some extent.

Still, internet telephony is doing quite well in towns and cities that have good PC penetration.

Why aren’t you interested in privatising MTNL and BSNL? Why are you interested in maintaining a workforce of 60,000 for MTNL which caters to only Mumbai and New Delhi whereas Reliance caters to the whole country with a workforce of less than 25,000?

I have always supported privatisation. After I became minister, we have privatised large companies such as VSNL, CMC and HTL. I have no objection to disinvesting MTNL and BSNL. The question is whether we first need to bring them together before we sell.

Most telecom experts and economists have told us that these companies will not survive in the new competitive environment unless they are brought together. I have always believed in quick decisions, but sometimes we need to be patient.

New telecom companies have fewer employees because they have the advantage of modern technology. MTNL and BSNL employed people at a time when telecom networks required more people to run them. I know the business logic of downsizing, but there is a human element that cannot be wished away.

In a country where even one job is difficult to get in one life time, asking thousands of people to look for another may be unfair and unjust.

Why is a 20-something woman named Monica a board member of MTNL?

While appointing board members of MTNL, we only look at the competence of a possible member. Men or women, young or old, good looking or ugly, it hardly matters.

What are the future plans for developing indigenous telecommunications technology by organisations like C-DOT?

Organisations like C-DOT have been developing technology primarily for fixed line networks. The world is moving towards wireless networks.

R&D organisations in India will have to focus on developing products for Next Generation Networks. The emphasis will be on wireless technology and packet-based IP networks.

When do you see all the companies under your ministry being privatised? Do you think your ministry will become obsolete and TRAI will take over the function of regulating the telecommunications sector?

We have already privatised Videsh Sanchar Nigam Limited, CMC and Hindustan Teleprinters. The privatisation of MTNL and BSNL is unlikely in the near future.

The job of my ministry is to make telecom policy. Policy making is always the responsibility of a government. Technology becomes obsolete, not governments. The function of regulating the telecom sector is already that of TRAI. So there is nothing to ‘‘take over’’. TRAI will continue to regulate and the ministry will continue to lay down policy.

What are your ministry’s plans for computerising and keeping it up-to-date on all the information pertaining to the Central Government?

My ministry assists practically every other ministry in computerisation. The National Informatics Centre (NIC), an organisation of my ministry, develops plans and executes them and also deputes personnel to operate the IT cells of most ministry’s of the Central Government. The NIC operates websites that provide a lot of information about the Central Government. I would recommend a visit to the website http://www.nic.in.

A lot was said about the Sankhya Vahini till recently. What is its status today?

The project was found to be unworkable and has been scrapped.