The Telecom Regulatory Authority of India (TRAI) has today released a consultation paper on “Encouraging Telecom Equipment Manufacturing in India.”

1. The telecommunication sector is a major contributor towards the national economy. Growth in the number of subscribers has been considerable and is expected to reach 1 billion by 2014.  This growth in turn attracts a large demand for telecom equipment and subscriber terminals. According to some reports, the telecom equipment market is over Rs 100,000 crores. However, the domestic telecom equipment manufacturing segment has not been able to keep pace forcing the telecom operators to import most of the equipment required for their networks. Even the existing domestic manufacturing of telecom equipment in India utilises technology developed abroad resulting in the benefits of sales of such products accruing largely to foreign companies. To meet the country’s demand as well as to be able to export, India has to create a synergetic telecom ecosystem and build globally competitive product companies across the telecom value chain.

2. To bring the issues relating to telecom manufacturing into focus, a pre-consultation paper on “Encouraging Telecom Equipment Manufacturing” was issued in the month of May 2010 for obtaining views of the stakeholders. Based on the comments given by the stakeholders, a consultation paper has been issued today to collectively discuss, debate and finalise measures that can be sent as recommendations to the government.

3. The consultation paper takes up the following important issues for deliberations:

  • Promoting R&D and creation of intellectual property
  • Promoting manufacture of telecom equipment in India
  • Manufacture of electronic components in India

4.  Full text of the Consultation Paper is available on TRAI’s website. Written comments on the issues raised in this consultation paper are invited from the stakeholders by 14 January, 2011 and counter-comments on the comments by 21 January, 2011. The comments and counter-comments may be sent, preferably in electronic form, to Lav Gupta, Principal Advisor (TD) on the e-mail address: tdra@trai.gov.in or tdra.trai@gmail.com. The comments can also be mailed to address given below or faxed to 011-23211998.