The draft of the New Telecom Policy 2005 is believed to contain the following proposals:
- Reduce cost of long distance licences
- Introduce subscriber-linked spectrum allocation
- Make local equipment manufacturing a pre-condition for participating in bids for PSU contracts
- Aggressively utilise USO fund for pushing rural telephony.
- Spectrum allocation should be linked to subscriber criteria and all efforts should be made to vacate it from its current users for which inter- ministerial negotiations with the users like defence should start sometime earlier, giving them time to move to alternate spectrum band equipment.
- There should be a clear road map, giving a time-bound schedule for availability of spectrum to operators upon reaching predefined milestones (subscriber base, as per the draft).
- Lowering the cost of entry into mobile segment by lowering the high incidence of duties and levies. Currently, the sector attracts a levy of 30 per cent.
- Major reduction in STD and ISD licences
- A greater role of DoT in regulatory matters
- It is unlikely that the draft would take cognizance of TRAI's unified licensing suggestions.
The draft NTP 2005 is expected to be put up for public view at the end of this month and is believed to have focussed on eight key areas -- access, licensing, regulatory issues, spectrum, rural telephony, universal service obligation, manufacturing and consumer issues.