(March 19, 1998 - March 18, 1999)

"We must grow faster.  We can grow faster.  We simply have no other alternative" -  Prime Minister A.B. Vajpayee

TELECOMMUNICATIONS

    The one year period from March 19^th, 1998 witnessed a number of developments of far reaching importance in the telecommunications sector. The most significant initiatives in this infrastructure sector during the year under review include announcement of the New Internet Service Providers (ISP) Policy, introduction of Global Mobile Personal Communications by Satellite (GMPCS) service, decentralisation of procurement of telecom equipment and creation of Broad Based User Group Network. Another major development was the constitution of a Group on Telecommunications to make recommendations on the proposed New Telecom Policy and other pending issues in the telecom sector. Besides, a Committee on Spectrum Management was also constituted to review the present practice and procedures with regard to spectrum allocation.
 

Internet Service Providers Policy Announced

    According to the New Internet Service Providers Policy, Private Internet Service Providers will be allowed to enter the Internet Service Market which was exclusively reserved for Videsh Sanchar Nigam Limited (VSNL)/Department of Telecommunications (DoT) till date. Under the terms and conditions of this policy, any Indian company with a maximum foreign equity of 49% is eligible to apply for licence. Licence will be granted for a period of 15 years with the licence fee being waived for the first five years and Re.1/- per annum for the subsequent period. As on 01.03.1999, 77 licences have been issued to companies for providing Internet Services.
 

Introduction of GMPCS Permitted and Provisional Licence Granted to Iridium

    The Government has permitted the introduction of Global Mobile Personal Communication by Satellite (GMPCS) in the country. The subscribers of this service would be able to communicate from any point on earth through hand-held telephone units.

    There will be no restriction on the number of players in the sector. The licences for GMPCS will be issued on 'first-cum-first served' basis without the need for artificially limiting the number of operators for the present. Due to several security implications as a result of the global reach of the GMPCS service, the licences will be awarded after the proposals are scrutinised from the security angle by a designated committee.

    A provisional licence agreement has been signed between the DoT and M/s. Iridium India Telecom Limited (IITL) to enable the company to start commercial operations of GMPCS.
 

Group on Telecommunications Constituted

    The Government has constituted a Group on Telecommunications (GoT) to make recommendations on the proposed New Telecom Policy; issues relating to the existing licensees of basic and cellular services and suggest appropriate remedial measures within the framework of the New Telecom Policy and issues with respect to the Telecom Regulatory Authority of India (TRAI). This 15-member group, chaired by Deputy Chairman, Planning Commission, has been constituted in accordance with the Prime Minister's direction in the context of his announcement on October 24, 1998.

    The GoT has also set up a 7-member sub-group headed by Deputy Chairman of the Planning Commission and has representation from the industry and financial institutions besides the Government for deliberations on the pending issues in the telecom sector.

    The GoT and the sub-group had been holding regular meetings to discuss and arrive at a solution. Consequent to this, the GoT released a Draft Discussion Paper on New Telecom Policy 1999 on 23.01.1999 for eliciting wider public discussion, reasoned views and comments by February 1999 on the suggestions contained in the Draft Discussion Paper and on any other aspects of New Telecom Policy.
 

Constitution of Spectrum Management Committee

    Based on the recommendations of GoT constituted by the Prime Minister a committee on Spectrum Management has been constituted. The committee among other issues would have as its terms of reference to review the present practice and procedures with regard to spectrum allocation and suggest means for optimising utilisation by treating spectrum as a national asset.
 

Focus Action Group on Private Investment Promotion Set Up

    A "Focus Action Group on Private Investment Promotion " (FAG-PIP) has been set up by the DoT in order to encourage, stimulate and facilitate private investment in telecom sector. The seven-member group headed by Additional Secretary (Telecommunications), will also work towards smoothening the implementation of the projects.
 

Private Sector Basic Telephone Network Launched

    India's first private sector fixed line network was launched by Bharti Telenet from two cities in Madhya Pradesh - Indore and Bhopal. Hughes Ispat became the second company to launch basic telephone network in the private sector by starting operations from Maharashtra and Goa.
 

Short Distance Charging Area Declared as Local Area Without Increase in Registration Fee and Rentals

    DoT has decided to treat the entire Short Distance Charging Area (SDCA) as one local area for the purpose of ‘charging’. The revised policy became effective from 15^th August 1998. With this decision, calls to the adjacent SDCAs which were being made on STD rates will now get the facility of inter-dialing on a basic rate of three minutes per call unit (local call rate).

    The rural subscribers whose registration fees and rentals due to the revised definition of local area (w.e.f. 15.08.1999) had increased, on reconsideration have been given benefit of no rental increase with the new facility of SDCA local area concept. As a result the registration fee as well as rentals for rural subscriber has been brought to pre-15^th August 1998 level in order to give boost to rural telephones.
 

Conference Facility for STD/ISD PCOs Allowed

    "Conference-facility" has been permitted to STD/ISD Public Call Office (PCO) franchisees of the DoT at the existing Tariff and Commission. This came into effect from July 15, 1998. The facility will enable the public, particularly women, children and handicapped persons to make STD & ISD calls from their home and premises at any time of the day. This will also prevent overcrowding of the booths. To operate this facility, the STD/ISD PCO operators will be required to take an additional non-STD direct-exchange telephone connection. This will facilitate them to give STD/ISD connection to the public without blocking the local PCO (coin-collecting box) installed in their premises.
 

Decentralisation of Procurement of Telecom Equipment

    As part of the rationalisation process in the procurement of telecom equipment, the Department of Telecommunications (DoT) has decided to decentralise the powers to its field units in a phased manner. For the year 1998-99, 20 items which were earlier being procured centrally have been decentralised to the telecom circles. Encouraged by the response from the field units, 35 more items have been added to the list of decentralised items for the year 1999-2000.

    The decentralisation of these items will enable the telecom circles to match their requirements with speedy procurement and remove some of the bottlenecks which come in the way of development of telecom facilities in the field units.
 

DoT Provides Pagers to Field and Line Staff

    The Department of Telecommunications (DoT) has decided to further extend the scheme to provide pagers to field and line staff on an experimental basis for six months in the telecom circles of Assam, North-East, Madhya Pradesh, Maharashtra, Calcutta and Chennai. The scheme would be reviewed after a couple of months on getting feedback from the field units with regard to improvement in fault rectification services.

    Provision of pagers to the field and line staff has brought about a remarkable improvement in rectification of faults in Indore telecom circle where this scheme was first initiated on an experimental basis. It was, therefore, decided that the scheme may be extended to other areas as well.
 

 Calling Line Identification Processing (CLIP)

    A new service facility called CLIP which will facilitate the subscriber to know the details of incoming calls have been introduced w.e.f. 01.01.1999. The tariff for the service which is provided on first-cum-first-served basis has been fixed at Rs.50 per month and one time processing fee at Rs.50.
 

Retired DoT Employees Get Concessional Facilities

    Retired employees of the DoT will get concessional telephone facilities including rent free telephones and free call concessions of various slabs depending on their grades at the time of retirement. The decision was taken by the Department in recognition of their service to the nation.
 

Broad Based User Group Data Networks Created

    A new category of private networks called Broad Based User Group (BUG) Data Networks has been created. The decision was taken to broad base the Closed User Group (CUG) which were earlier restrictive in nature. The criteria that was considered in creating BUG is to facilitate interconnection among the private networks who have a capacity for different types of services having common interests and for providing services on commercial basis to limited groups of users.
 

National and International Automatic Roaming for Cellular Subscribers Permitted

    National and International Automatic Roaming between various cellular operators' service areas has been permitted. Automatic Roaming allows a mobile subscriber to move from one service area to another while still retaining the service. In this way, a subscriber can roam seamlessly across a circle and even across national borders. Initially, permission for Automatic Roaming was given to cellular operators only between metro cities of Delhi, Mumbai, Calcutta and Chennai.
 

Optical Fibre Telecom Link Commissioned between Nepal and India

    An Optical Fibre Link between Birgunj in Nepal and Raxaul in India has been established. The establishment of this link would help in providing quality service to subscribers and would promote greater interaction between the people of both countries. With the commissioning of Optical Fibre Link, 34 Mbps system between Kathmandu and Patna has been made operational and all the circuits between Nepal and India i.e., from Kathmandu to Calcutta, New Delhi, Patna, Mumbai and Chennai have now been transferred on fully digital media. These circuits are capable of carrying other Value Added Services as well.
 

Internet Access Nodes

    In order to ensure that India develops as one of the super powers in Information Technology in the world, the Government decided, as a long term measure, that internet access nodes will be opened at all district headquarters by 26^th January, 2000.
 

Reduction in Lease Rentals

    The present rental for high speed data circuits leased by closed user group, licensees of basic services, cellular services and other value added services is high. The Government has decided to reduce the lease rental from double the rental now being charged to single normal lease rental charge.
 

VSNL Blocks Access to Party Line Services

    Videsh Sanchar Nigam Limited (VSNL) has, in public interest, blocked access to a series of international numbers being used from India to provide Party Line and sex calls. These services were being used to host obnoxious and sexually explicit material and unacceptable language. The widespread offering of such calls had brought in a number of complaints, in many cases, the victims of these calls were children calling or customers whose lines were misused.
 

VSNL Employees to Get Shares - A Labour Friendly Decision

    The Government has decided to sell shares of the VSNL to its employees at a price of Rs.294 per share as against the prevailing market price in the Mumbai Stock Exchange of about Rs.900 per share as on 27.01.1999. However, each employee would be allowed to pick up a maximum of 200 shares only and there would also be a lock-in period of three years. The decision is labour friendly and the proposal had been pending with earlier governments also for a long time. The main aim was to boost the morale of the employees.
 

VSNL-GDR Issue Priced at US$ 9.25 per GDR-Issue Oversubscribed

    The Government of India, VSNL and the Joint Global Coordinators, announced the pricing of the VSNL GDR in the divestment offering at US$ 9.25 per GDR on 11.2.99. This represents a premium of 15% to VSNL's closing price in the domestic market on 10 February 1999, of Rs.682/- per share and a 6% premium, the average price for the last ten days on the BSE. The offering evinced exceptional interest from high quality investors, leading to a demand of 37.95 million GDRs with a total offer bid of US$ 341 million. It may be mentioned that the Government divestment offer was for 20 million GDRs, including a greenshoe option, against which the demand of 37.95 million GDRs was registered.
 

ITI Designs Modern Satcom Equipment for Indian Army

    The state-of-the-art satellite communication vehicle designed for the Corps of Signals will be the star attraction of this years Republic Day parade. The equipment is completely indigenous and is designed and developed for the Indian Army by Indian Telephone Industries (ITI). It provides nine encrypted voice channels and three data channels working on the Indian National Satellite (INSAT). It can function at extreme temperatures as prevailing in J&K and deserts of Rajasthan.
 

National High Speed Inter-University Data Network of India to be Established - Sankhya Vahini

    A Memorandum of Understanding (MoU) has been signed between the DoT and IUNet, a US based educational institute, to establish Sankhya Vahini, a National High Speed Inter-University Data Network of India. The network would be enriched with educational, healthcare and other knowledge oriented multi-media applications for the technological and economic growth of India. This MoU will also facilitate the access of educational, training and digital libraries providing content that are available from some universities in the US and also from outstanding educational and research institutions in India.
 

Interactive Television Distance Education Project Approved

    An Interactive Television Distance Education project has been approved by the Government of India. The project will be carried out jointly by the Department of Telecommunications (DoT), the Ministry of Human Resource Development and UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific). The International Telecommunications Union (ITU) has also confirmed its participation in this venture. The major objective of the project is to provide in-service primary teachers' training in the States of Madhya Pradesh and Maharashtra.
 

DoT to Engage Marketing Agents for Value Added and New Services

    The Department of Telecommunications has decided to engage marketing agents to popularise Value Added Services and also accelerate the introduction of new services. The scheme is being piloted initially in Delhi, Calcutta and the States of Maharashtra and Tamil Nadu except Mumbai and Chennai. The five services to be marketed are INET (Intelligent Network); HVNET (High Speed VSAT Network); RABMN (Remote Area Business Message Network); ISDN (Integrated Services Digital Network) and INTERNET (TCP/IP).

    The Department, till now had been relying on its own marketing efforts in popularising telecom services. With the introduction of more and more value added and new services by DoT it was felt necessary to engage the services of marketing agents.
 

Focus on North-East

    The Government has decided to give special importance to strengthen the telecommunication network in the North-East. Priority is being given to Village Public Telephones (VPTs). However, a number of villages are located in very difficult geographical terrain where normal terrestrial technology like Shared Radio System, overhead and underground cable network cannot be provided. For such regions the DoT has initiated a pilot project of installing satellite-based VPTs. Based upon the experience gained from this project, there are plans to commission satellite based VPTs at a number of remote inaccessible places in North-East region.
 

Telecom Sector - Performance from 18^th March 1998 to 17^th March 1999

• 4.1 million new telephone connections were provided with a Switching Capacity addition of about 5 million lines during the one year period, from 18^thMarch 1998 to 17^th March 1999.

• The tele-density of the country has moved up from about 1.8 per 100 inhabitants to over 2 per 100 inhabitants, improving the accessibility of telephone service.

• Hilly areas and rural areas have been receiving special attention in the development of telecom. In the North-East Region, including Assam, 77,000 new telephone connections were added with an additional Switching Capacity of 84,000 during this period.

• To focus special attention in the development of North-East, Government is bringing out a separate Perspective Plan for the region.

• During Annual Plan 1999-2000, it is proposed to provide additional 4.5 million new telephone connections in addition to the contribution from private sector.

• During the remaining period of 9^th Five Year Plan i.e. from April 1999 to March 2002, the Government proposes to add additional about 13 million more lines.

Jagmohan Meets Public for Redressal of Grievances

    The Minister of Communications, Shri Jagmohan has been holding public hearing on every Thursday at 4.00.P.M. since 11^th February 1999 at Dak Bhawan, Parliament Street, New Delhi as a part of the drive to redress public grievances speedily and to attain higher level of efficiency in the Departments of Telecommunications and Posts. Those who have any grievance relating to installation and shifting of telephones, billing complaints and miscellaneous telecom and postal matters may meet the Minister with a brief written representation. Public hearing on similar lines are being arranged at places visited by the Minister during his tours outside Delhi.
 

Budgetary Proposals 1999-2000
 

To Instal

• 45.5 lakh Direct Exchange Lines (including 4.9 lakh lines by MTNL)
• 54.7 lakh lines of Switching Capacity (including 5.7 lakh lines by MTNL)
• 4 lakh lines of Trunk Automatic Exchange Capacity
• 45000 Village Public Telephones

Tax Custom Duties and Excise Benefits

• Removal of 5% restriction on availability of MODVAT credit will benefit equipment manufacturers
• Reduction of custom duty on Optical Fibre by about 3% (31.9 from 34) will benefit service providers through reduced cost of equipment
• Benefit of Sec 35 ABB of Income Tax Act has been clarified as applicable from date of payment of Licence fee rather than commencement of operation, which benefit new franchisees.

POSTS

India's First Fully Computerised Post Office
 

    The Parliament Street post office has been computerised with the front and back office working on computers on an integrated system. The areas computerised include counters which handle booking of registered articles, Speed Post articles, Insurance articles, Money Orders, Postal Insurance etc. Various saving schemes, accounting procedures cash and stamp transactions, dispatch mail lists, bag lists have also been computerised. The primary objective in computerisation of services is to improve the efficiency and effectiveness in working, thereby intending to bring customer and staff satisfaction.
 

Upgraded Replacement Scales of Pay Granted to Postmen and Mail Guards

    The Government has decided to grant employees at the Postman and Mail Guard level in the Department of Posts upgraded replacement scales of pay. The decision, which was in recognition of their arduous and difficult nature of work, will benefit about 55,000 employees.

Extra-Departmental Agents Granted Benefits after Considering the Recommendations of Justice Talwar Committee

    Postal Services in the rural areas are provided through the Extra-Departmental system which comprises 1,27,162 ED-Post Offices and around 3,09,825 ED-Agents who are employed for a period of two to five hours. A one-man committee headed by Justice Charanjit Talwar was set up by the Government on 31.3.95 to examine the wage structure and conditions of service of the ED-Agents. The committee submitted its report on 30^th April 1997 making recommendations which in effect place the ED-Agents on equal footing with regular employees of the Central Government.

    The recommendations of Justice Talwar Committee have been considered by the Government and the ED-Agents are extended a number of benefits relating to arrears, pay and allowances, leave and gratuity etc.
 

Productivity Linked Bonus (PLB)

    The existing formula for computing PLB payable to its employees has been revised by the Government. The revised formula among other things envisages a change of the base year from 1976-77 to the average of the best two years during the last five years i.e. the year 1994-95 and 1995-96, for measuring the productivity and assigning a value of 43 days to the base so determined. It also removed the existing ceiling of 40 days emoluments for the purpose of PLB applicable for the employees in the Department of Posts, with effect from bonus year 1996-97.
 

National Postal Policy

    A draft National Postal Policy has been formulated with emphasis on upgradation and modernisation of postal services, expansion of postal network through traditional methods of opening post offices as well as through innovative methods like franchising on minimum cost, involvement of private initiative in postal services particularly in the areas of value added services. It also envisages strengthening of international cooperation in the field of postal services on bilateral basis and through the aegis of Universal Postal Union and other regional postal bodies.

Amendment of the Indian Post Office Act, 1898

    The present Indian Post Office Act was enacted in 1898. Since 1982, efforts have been made to amend the Act and bring it up to date. Now in the context of technological developments and new liberalisation policy as well as qualitative changes taking place on postal scene the world over, an exercise has been taken to amend the Act so as to bring them in tune with current and future requirements. The proposals in this regard are expected to be finalised shortly.
 

Citizens' Charter

    In the context of providing a responsive, transparent and effective administration, the Department of Posts has formulated the Citizens' Charter. The Charter emphasises the Department's commitment to provide better quality of service and informs the members of the public about the various services being provided as also where to go in case of a grievance.
 

Panchayat Sanchar Sewa Yojana (PSSY) - Renewed Launch

    The scheme has a great potential as it deepens the reach of postal facilities in far flung areas in the country where the existing norms do not justify a post office. The scheme was launched in 1995 as a pilot project in 5 States. In 1995-96, 497 PSSKs were opened. At present 613 PSSKs are functioning in the country. An intensive drive has been undertaken to popularize the PSSY.
 

Revision of Rates in respect of Foreign Letter Post Items

    The Government w.e.f. 1^st February 1999 revised the tariffs for certain foreign postal items. This revision by the Government would fetch an additional annual revenue of about Rs.47 crore.
 

Informatiion and Facilitation Counters (IFCs) and Customers Care Centres (CCCs)

    As a part of the Action Plan to make the public service, more open, transparent and responsive it was decided by the Department of Posts to provide IFCs at all the important Post Offices. Further, in order to rationalise and customise public grievances handling and processing system, it was also decided to set up CCCs at each District and Division in a phased manner. 423 Post Offices having Multi-Purpose Counter machines have so far installed computerised IFCs. Rest of the Counters are manned manually. Besides, 67 computerised CCCs have so far been established including 7 in Metro cities like Delhi, Mumbai, Calcutta, Chennai, Bangalore, Hyderabad and Chandigarh.
 

Modernisation of Postal Services & Electronic Money Transfer

    As part of its commitment to future and ongoing improvements, the Department of Posts has been adapting and assimilating modern technologies for achieving excellence in its services for upgrading the quality of service and enhancing customer satisfaction. It has made significant strides in computerisation of counter operations as the most important point of interface with the customer, used satellite communications technology for transmission of Money Orders, and is modernising mail processing systems in major cities. About 4000 computerised multi-purpose counter machines have been istalled in 1100 post offices in which 55 lakh transactions are performed every month. Seventy-five VSAT stations have been installed which transmit about one crore money orders annually. These have been further connected to 610 post offices through modem, PC and telephone, which constitute the Department's Extended Satellite Money Order stations. These activities are being further expanded during the Ninth Five Year Plan.
 

Special Initiatives for Development in the North East

    Having regard to the present status of low development and inaccessible and predominantly hilly terrain, special initiatives have been taken for development of North Eastern region. 10% of the Department's total Annual Plan outlay has been earmarked for Expansion of Postal Network, Modernisation of Postal Services, Construction of Staff Quarters and Post Office buildings.

    By March, 1999 the following major activities are likely to be completed:

• Opening of 108 post offices in the region.

• Modernisation of 9 post offices and 4 Mail Offices

• A sum of Rs.2.81 crore has been earmarked for construction of post office buildings and staff quarters in the region.

• Training 250 officials in computers. In addition 383 and 1000 officials are proposed to be trained in SB refresher and PLI respectively.

• Setting up of a Management Information System for the North-East at a total cost of Rs.1.53 crore.

Budgetary Proposals 1999-2000
 

Major physical targets emphasised for 1999-2000 Plan Outlay are broadly :

• Supply of PC based machines 900 Nos. for counter computerisation and for 100 Local Areas Network for savings work.

• Modernisation of Post Offices-60 Post Offices.

• Opening of Extra Departmental Branch Post Offices to Departmental Sub-Post Offices-50 Nos.

• Installation of very Small Aperture Terminals (VSATs)-60 Nos.

• Computerisation of Customer Care Centres-55 Centres.

• Installation of Automatic Mail Processing Centres-1 Centre.

Proposed Revision of Postal Tariffs 1999

    In the Budget for 1999-2000, the Union Finance Minster has announced revision of tariff for some postal articles, however, "in the interest of the common man and the role of the postal services in easy dissemination of news and information there would be no change in the tariff for Postcard, Money Orders, Book Packets containing printed books and registered newspaper."

    The rate of printed post card has been raised from Rs.1.50 to Rs.2, of competition post card from Rs.3 to Rs.4, of Inland letter from Rs.1.50 to Rs.2.00 of book pattern and sample packets from Re.1 to Rs.2 for the first 50 grams or part thereof and from Rs.2 to Rs.3 for every additional 50 gram or part thereof, and parcels from Rs.10 to Rs.12 for a weight not exceeding 500 grams or part thereof and from Rs.10 to Rs.15 for every additional 500 grams or part thereof.

    The revision proposed are estimated to yield additional revenue of about Rs.145 crore in a full year and about Rs.121 crore during 1999-2000.