TLF: The telecom industry needs an action plan for revival

"Five years back the telecom industry in India was defining the growth of the nation. But if you look at the scenario today, the industry is facing numerous challenges, with all the policy paralysis, scams, and other things that have impacted growth," said Pradeep Gupta, chairman & managing director, CyberMedia, in his inaugural address at the Telecom Leadership Forum 2012.

The inaugural panel discussion on survival strategies included eminent names such as SK Gupta, former CMD, VSNL; RN Prabhakar, former member, technology, Trai; and, Kuldeep Goyal, former CMD, BSNL.

Highlighting the lessons from their past experience, the panelists made some critical observations and recommendations for the revival of the industry. The event, organized with the objective to discuss and chart out an action plan to improve the current state of the telecom industry, was attended by the leading industry players and veterans.

A Challenging Scenario

"Even in the early days we had to deal with many problems," said SK Gupta, former CMD, VSNL, "the period 2008-09 was the best period when the telecom was shining, taking the nation's economic growth to greater heights. And then we decided to go for spectrum auction and all that led to the current problems."

"At a time when all the other countries are working on 4G, India has still not finalized its rules about 2G," he pointed out. "We need to now focus on creating a fair, transparent and credible policy."

Commenting on the regulatory environment of the country, RN Prabhakar, former member, technology, Trai said, "The measures taken by Trai to improve transparency have actually led to increase in regulatory costs. The policymakers now need to focus on three important areas: Quality of services, transparency, and revenues for the government." He also added that, "Instead of focusing only on the revenues, the model must focus on bringing value to customers."

Business Models Need to Evolve

The speakers also pointed out that business models have to change with the changing situation in the industry. "In the fiercely competitive scenario today, the shared infrastructure model is probably one that we could follow," said Goyal.

The speakers also suggested that policymakers must focus on creating a strong broadband infrastructure, viable revenue models, spectrum distribution strategy etc.

According to Kuldeep Goyal, former CMD, BSNL, the National Telecom Policy 2012 has laid down a good roadmap in terms of unified licensing, sharing infrastructure etc. "We hope the government brings it into action soon," he added.

On an Optimistic Note

Despite all challenges facing the industry, the service providers unanimously agreed that there is no issue of a so-called 'Doomsday Scenario' in the industry. "Telecom sector in India does not really need to worry to the extent that it should convey a sense of gloom. In my opinion, there is no need for any gloom. If you see the teledensity, the actual connections would be more than 700 mn. So telecom companies need not worry about survival," emphasized Upadhyay of BSNL.

"Operators need to find their own solutions. What role can telecom play in the growth of the country," said Himanshu Kapania, CEO, Idea Cellular. "There is no question of survival as long as a man would need communication and the desire to do things at a faster speed. The customer's desires and needs are changing fast and so is the industry. We are looking at innovative business solutions to revive and explore new avenues," Arvind Bali, director, CEO, Videocon Telecommunications insisted.

About Telecom Leadership Forum (TLF)

The Telecom Leadership Forum has been established in response to the call of Indian Telecom Industry developments and its global recognition. The forum aims to bring the telecom ecosystem together under one roof. This leadership series brings together international business leaders to acumen, innovate and influence by sharing their insights for dynamic business growth. This networking and knowledge sharing platform enables you to meet with Asia's most prominent business leaders and learn how to shape the future of your division, ministry or company.

VOICE&DATA, known for having its finger on the pulse of the industry, sees an opportunity in exploring this cause of the demanding telecom industry, by making use of its research and content legacy as a strength to uphold the community globally.

TLF- Leadership & Innovation Awards

To celebrate leadership and encourage innovations in the telecom industry, TLF has instituted the awards to recognize and applaud talent in the country. Promoting excellence in the field of telecom has been a 10-year-old legacy, celebrated by VOICE&DATA, supported by its industry members. The award aims to encourage innovations in mobile applications, customer service, chipset, and technology innovation.