
NEW DELHI, MAY 15: Private telephone service firms have protested to the government after it suddenly reinstated some import duties lifted in the budget for 1999/2000 April-March.
The finance minister8217;s decision to revise the concessional duty rate on various telecom equipment including wireless in local loop WiLL, radio communication apparatus including VHF, UHF, digital line carrier DLC and synchronous digital hierarchy SDH equipment has worried private basic telecom companies.
Flaying the rollback, the Association of Basic Telecom Operators ABTO secretary general SC Khanna said, quot;The rollback will render all basic service projects unviable as the duty burden will go up.quot;
Claiming that basic operators will not purchase the equipment despite the lower costs, Khanna said, quot;Indigenous equipment developed by HFCL, ITI, Shyam Telecom and Crompton Greaves is not suitable at all for our purposes.quot; Khanna alleged that the CorDECT technology was based on outdated European Digital Enhanced CordlessTechnology DECT which had been licensed to HFCL, Shyam Telecom and Crompton Greaves by a US-based company Analog Devices some years back. quot;These companies have paid Rs 80 lakh to the company for licensing the technology,quot; he added.
The ABTO spokesperson added that the equipment manufactured here was essentially of the screwdriver kind. quot;The main suppliers of SDH equipment to the local manufacturers are companies like Marconi of UK, Nortel of Canada and Alcatel of France,quot; he said adding that the equipment was imported in semi-knocked down SKD form and cobbled together.
Khanna said that systems based on the DECT/CorDECT technologies are limited in their area of coverage. quot;This technology requires at least eight to 10 base terminal stations BTS against just one BTS in the case of the superior code division multiple access CDMA technology,8221; he added.Countering the criticism, Ashok Jhunjhunawala of IIT Chennai said, quot;Let them at least first try out the system and then levy unwarranted and baselesscharges.quot; He added that the system developed in house by an IIT team and Chennai based Midas Communications was rolled out over two years back and was being used by a number of countries worldwide. quot;The technology has already been licensed to companies in France, China and and other countries and is available at half the price of imported equipment in India,quot; he added.