Foresee local calls at 10p/min, STD at 25p/min: A Raja

Published on Mon, Oct 26, 2009 at 15:07 |  Source : CNBC-TV18

Updated at Fri, Oct 30, 2009 at 18:22  

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A Raja, Telecom Minister

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Q: You are right but the real issue here about the entry fee is that your detractors say because of keeping the entry fee at the 2001 rate, you allowed the promoters of these new license companies to make a huge windfall gain by selling out equity to various other companies and that they have pocketed thousands and thousands of crore because they allege that the license was underpriced and so was the spectrum. What do you have to say about that?

A: Two angles have to be seen in this issue, whether this issue comes under my official scope, the foreign direct investment (FDI) policy is not with me. How the issue of licenses all that, what are all the procedures that are going to be followed, having issued the license and having given the spectrum and how the dilution of shares is going to be taken- all this is with me. Number two whether the so called allegations in this company. The dilution which was done by Tata Docomo, the Shyam Telecom or the Unitech or some others as alleged by the people, all these things and no doubt it is being covered in the FDI policy, 75% already permitted by offloading the telecom sector, then the persons are coming by a proper channel which was established by the finance ministry by way of rules and law, how Mr. Raja can prevent it, of course, I told in the parliament itself but I cant do anything, I have had several discussions with Mr. Chidambaram and even now I discussed with them. I am the first minister in the ministry to be sending a note to the telecom commission deliberate immediately, stop the promoters from getting money to their buckets, so induction of the money to the company, is being covered by the FDI policy that has been approved by the CCA. Last week, Unitech's case was approved by CCA and not by Raja; CCA is headed by the Prime Minister and the other ministers. So this is not the question of whether I am permitting it, even if there is time for argument sake that there is a windfall gain and that gain is not because of Raja.  

Q: Does it apply to all companies? Have all companies at some point of time have been invited for investment?

A:  Yes.

Q: There is one more aspect and this is basically arising from your political detractors, they have gone ahead and even called you the Raja of corruption, it is something that must have caused you a lot of pain what do you have to say on this?

A: I have enough courage and its recorded in Parliament also that people called me Spectrum King and what is the reason behind it, when I assumed charge, I was told that there is no spectrum in 2G and 3G and more specifically there is no 3G at all and that is why recommendations came into the ministry eight months earlier to my assumption when I took charge as the telecom minster. It was kept in the ministry under impression that there is no 3G spectrum at all, I am the first minister and with all my sincerity I can tell and I can share with you. I Investigate that and coordinated how much spectrum is available, you will be surprised that till Raja's period for all existing operators 700 Mw were given for almost ten years, what is the growth, only 300 telephones, mobile, now it is 450. I must say on record otherwise as well, when I took charge as the telecom minister, per month it was only 7.5 million telephone connections, additions. Now it is 13 million. So, tele-density is going up. What I wanted to say is why this controversy, why this corruption charges. I don't want to be a stagnated and stinking pool. If it is a stagnated, stinking pool, no animal or man will come; nobody will throw stone on it. When you are flowing water, somebody will drink, somebody will use, somebody will use it for other purpose. So, I don't want to be a stagnated and stinking pool. On the other hand, I am the first minister who investigated and coordinated how much spectrum is available and put on record, on the website, that this much spectrum is available. I cannot expect a certificate from Jayalalithaa or some of the BJP leaders that Raja is honest and this and that. My only thing is I enjoy my confidence with the Prime Minister and the government and I ensure that there is no deviation in the recommendations that has been made by TRAI and the procedure established earlier by all my predecessors.

Q: To sum it up, you feel you are accused and people point fingers at you because you took on vested interests, you took on established and you broke a sort of monopoly and introduced greater competition. Is that the sum and substance of it?

A: That is the substantial question around this whole debate. I don't want to personally accuse any specific operator. You may be aware that it is needless to say that the entire industry is divided. Everybody has their own commercial vested interest. They wanted to maintain their monopoly. I wanted to break the cartel. When I broke the cartel, all these apprehensions and sounds came into existence. Of course, it will be part and parcel of democracy, and democratic life. As a politician and as a minister you have to see and you have to resolve the problem. I don't feel that I am hurt because of this.

Q: What is your future agenda? The 3G auction you have issued the information memorandum. What is the broad future agenda of your ministry?

A: After this 3G, I wanted to focus on new technologies available for rural telephony. I am told that in the recent Geneva conference that there are some technologies, which can connect the existing infrastructure that has been created by all stakeholders, all operators, without putting further infrastructure or any huge amount new technologies are coming. How the rural tele-density can be tapped through the existing towers and infrastructure. I wanted to know that technology. Of course some of the people from other countries also wanted to visit India and deploy their technology. My only attention for the next two years would be that the rural telephony should go up tremendously and tariff should be brought as I put it earlier, 10 paise the circle and 25 paise the whole of India.

Q: Do you think the 3G auction will happen successfully and there will be no further delays because this time the Defence Ministry seems to be going back on its earlier stance and is refusing to part with the spectrum that has to be given in the 3G auction?

A: I cannot comment on what is the difference between this and that. It may not be fair on my part to speak about the conversations that have been held between the two ministries. But I already intimated the honourable finance minister who is leading the GoM for this purpose. Whatever be the small issues pending with the two ministries or other connected ministries, it will be resolved by him and other ministers.

Q: So, the auction will happen on January 14?

A: I do hope and I want to ensure that the action must be completed as we promised and as we scheduled.

  

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