 "Self-regulation is for self-satisfaction of companies: Ravi Shankar Prasad")
After finalising key policy decisions for telecom operators, including spectrum sharing, spectrum trading and mobile virtual network operators, Minister for Communications and Information Technology Ravi Shankar Prasad is now busy resolving another concern of operators, which owe about Rs 2,300 crore to the government as penalties. The minister has formed a committee for rationalisation of penalties. In an interview with Mansi Taneja, Prasad says there is no reason for operators to not offer flawless service and dismisses self-regulation (announced by Bharti Airtel recently) on call drops as mere self-satisfaction. Edited excerpts:
The Supreme Court has overturned Trai (the telecom regulator)'s rule on compensation for call drops. Mobile services continue to remain dismal in many locations. What steps will the government take to resolve this?
I won't comment on the compensation part of the overturned regulation. We have taken many steps to resolve the spectrum crunch situation, such as sharing and trading. We have also given permission to install sites on government buildings. We are going to auction 2,000-MHz spectrum in the next few months.
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All these initiatives have been taken to enable operators in offer good quality services. Operators need to work on the gaps in their network, reinforce these and invest. It is part of their responsibility but the ministry will continue to insist on good quality, and keep monitoring the situation at every step. They (operators) need to do more.
Bharti Airtel recently announced self-regulation for call drops at 1.5 per cent, against Trai's allowed two per cent. Do you think other operators should do likewise?
There is no reason for any excuse. After the coming auction, spectrum crunch will be a thing of the past. We have set up a committee to look into rationalisation of penalties, a long-pending demand of operators. I don't understand self-regulation. It is for their (companies') self-satisfaction. For me, customer satisfaction is important. The day consumers will tell me that services have improved, that will be a real benchmark.
When do you plan to auction the 2,000-MHz spectrum? Will it happen by the end of this year?
It will take a few more months. There is a long process involved and it might happen before the end of this year.
What's the update on Bharat Net? By when it is likely to be completed? Many deadlines have been missed.
All 250,000 gram panchayats will be connected by mid-2018. As of May 8, the OFC pipe laid is 140,742 km, covering 61,066 panchayats. On the optical fibre front, it is 112,871 km, covering 50,465 panchayats. Since 2011 till our government took charge, the OFC pipe laid was 2,292 km and of fibre was only 358 km. This shows the pace we have achieved in two years.
Bharat Sanchar Nigam has taken many steps to improve its financial health but what about Mahanagar Telephone Nigam Limited (MTNL)?
We are preparing an action plan for MTNL, to improve its services and profitability. BSNL in 2004 had a profit of Rs 10,000 crore, which got converted to a loss of Rs 8,000 crore in 2014. For the financial year gone by, for the first time BSNL has posted an operating profit of Rs 672 crore. Revenue rose by 4.1 per cent. Subscriber addition is encouraging. Clearly, it is on a path of revival.
E-commerce has come as a boon for India Post. Will this enable the department to reduce losses and post profits in a couple of years?
India Post has collected Rs 1,300 crore in 2015-16 from cash on delivery, against Rs 500 crore in 2014-15 and Rs 100 crore in 2013-14. The huge network of 150,000 post offices is being used for delivery of e-commerce parcels. India Post has set up many automatic parcel centres and delivery areas. In the next two to three years, this will definitely make India Post a vibrant organisation. The (postal) payments bank will also be operational by March 2017 and many global financial institutions have expressed interest to partner with India Post.
