India?s apex security agency, the National Security Council Secretariat (NSCS), has stated that the government should make it mandatory for Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) to invest in research and development (R&D). This is expected to help both operators reduce their dependence on imports and develop a stronger telecom products ecosystem in the country.
According to NSCS, telecom-led research initiatives undertaken by public sector utilities are sub-optimal and therefore the government should examine whether expenditure on R&D could be made mandatory and eligible for tax benefits. Such a policy decision would particularly benefit public sector entities such as BSNL and MTNL.
Currently, telecom-related R&D activities by government entities are undertaken by the Centre for Development of Telematics Limited (C-DoT) and ITI Limited, while the Department of Telecommunications? (DoT) technical wing, the Telecom Engineering Centre (TEC) plays a coordinating role. However, as per NSCS, while C-DoT and ITI have made forays into telecom product development, efforts should be made to further develop the telecom equipment market in India and evolve an ecosystem which supports development of patents and generation of intellectual property rights and also influences international communications standards. The apex security agency has also urged DoT to strengthen internal systems to undertake assurance testing and certification before any telecom equipment is integrated into the country?s telecom networks.
It, however, observes that blocking of procurements from foreign companies may not be a practical proposition, given the heavy dependence of the domestic telecom industry on foreign telecom equipment vendors. It wants DoT to examine whether the current model of testing and certifying telecom products in the UK can be implemented in India.
The NSCS has also urged DoT to consider the feasibility of special economic zones (SEZs) for high-end telecom products manufacturing. It believes that SEZs can promote exports to take advantage of economies of scale, thereby making India a leading provider of high-end telecom equipment.
