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Monday, March 20, 2006
Prime Minister's Office
 

Steps to strengthen telecom sector promised

PM DEDICATES TO NATION BHARTI SCHOOL OF TELECOMMUNICATION TECHNOLOGY AND MANAGEMENT

14:56 IST

  The Prime Minister, Dr. Manmohan Singh, has said that the Government is addressing the issue of releasing additional spectrum from government use for the use of commercial telecom operators so that growth of this dynamic sector is not constrained by the shortage of this vital resource. 

Dedicating Bharti School of Telecom to the Nation at a function here today, Dr. Singh emphasized the need to increase penetration of telecommunication in rural areas.   “We need therefore to look at approaches which would enhance the teledensity in rural areas  if we have to have 250 million subscribers by the end of next year,” he said.

            Referring to the collaboration between Bharti School and IIT Delhi, he said, “coming together of the private sector and the public sector in the field of technical research and education is truly a welcome development.” He urged the private sector to play a larger role at the tertiary level, especially in technical education. If India is to be a major player in the evolving global knowledge economy, Dr. Singh said, we need greater emphasis on public-private partnerships to boost our Research and Development capabilities.  He expressed hope that the Bharti School will make a mark in this direction.

            Following is the text of Prime Minister’s address on the occasion:

“I am truly delighted to be here in this great temple of modern India to dedicate to our nation the Bharti School of Telecommunication Technology and Management. I compliment Sunil Bharti Mittal and the Bharti Foundation for this wonderful initiative which I believe is a glowing example of public-private partnership in the field of higher education and research. If India is to be a major player in the evolving global knowledge economy, we need greater emphasis on such partnerships to boost our Research and Development capabilities.  I sincerely hope the Bharti School will make a mark in this direction. The Bharti Foundation has been a path finder, may your path be blessed.

            The phenomenal success of Bharti Telecom symbolizes the transformation of our economy. Over the past decade when we launched new economic policies, we did so to unleash the creativity and talent latent in our entrepreneurs like Sunil and others like him. That this talent has given such a good account of itself, this flowering of creativity of spirit of adventure and enterprise is the most exciting thing about contemporary India and I compliment Sunil and his friends, professional colleagues for having made it possible for us to think big about the future of our country.

            The success of the telecom revolution in India has been commented upon all over the world. It was not too long ago that each one of us had to stand in long queues, and some had to pull strings to get a mere telephone connection. I remember the common perception that you registered for a telephone connection the moment your child was born so that it materialized by the time the child became an adult. It was the vision of  late Rajiv Gandhi, the enthusiasm of men like Sam Pitroda and the enterprise of business leaders like Sunil that has transformed our telecom scenario beyond recognition.. From a dismal tele-density of less than 2 per 1000 in the year 1998, we have achieved a tele-density of around 10 now. A large proportion of the expansion has been through the increasing use of mobile telephones. I believe today there are more mobile phones users than landline users.

            This telecom revolution has contributed enormously to increased efficiency in the economy. It has reduced transaction costs. It has increased connectivity across the length and breadth of our vast subcontinent. It has brought Indians closer to each other. The telecom sector is driving today the growth of both incomes and employment. Indeed, this growth is creating new business and new employment opportunities. India has emerged as a major base for the telecom industry worldwide and we intend to facilitate the further growth of this vital industry.

            While celebrating this success in the telecom sector, I do recognize that there is more to be done to strengthen it. One of the issues that we are presently looking at is the question of spectrum allocation and the challenge of convergence. We are working steadily towards addressing the issue of releasing additional spectrum from government use for the use of commercial telecom operators so that growth of this dynamic sector is not constrained by the shortage of this vital resource. I recognize the need to take a forward-looking approach, based on an appreciation of changing technologies. I also recognize the fact that convergence has its own logic and government policy must be mindful of ground realities. No policy can be effective if it is not in step with market and technological realities of our times.

            It is therefore absolutely essential to maintain the robust growth shown by this vital sector if we are to achieve the desired level of telecom connectivity. However, we must note that while we have achieved impressive growth of this sector overall, the penetration in rural areas is still quite low with a teledensity of less than 2 per 1000. Most of the growth in the past has been from our urban areas. If we have to double the subscriber base in the next two years, it would be a far more difficult exercise than in the past if we had to depend largely on the urban market for fueling the future growth. We need therefore to look at approaches which would enhance the teledensity in rural areas  if we have to have 250 million subscribers by the end of next year. Institutions such as the Bharti School at IIT Delhi must apply themselves to identifying and developing these new approaches.

            The rapid growth of the telecom industry has also increased the demand for manpower. So far, India has lagged behind other industrialized economies in Asia both on the hardware side and on the software side in telecom technology. Our Government is committed to the development of both these aspects of the telecom sector and we will be active partners with captains of industry to realize a vision that needs to fuel our future growth processes.

            I sincerely hope the Bharti School of Telecommunication Technology and Management will produce large numbers of technology leaders and managers who can manage the growth of this sector. I am also particularly happy that the Bharti School is located in IIT Delhi. This coming together of the private sector and the public sector in the field of technical research and education is truly a welcome development. I would like to see more of our universities and educational institutions reaching out to the private sector both for funds and for new ideas. A close interaction between educational institutions and industries that employ the products of these institutions can be beneficial to both.

            I have always felt that unlike in the United States and Europe, we do far less in our country to fund tertiary education and research through charities and trusts. As we increasingly universalize access to primary and subsequently secondary education, we will see a quantum jump in the demand for higher education. Our government has effected a steep increase in financial allocations for education at all levels. However, the priority for government will continue to be the primary and secondary education. I expect the private sector to play a larger role at the tertiary level, especially in the field of technical education and I listened with great interest to what Sunil told us about the need for new partnership between Government and industry and the private sector in reaching out to those segments of our society who have hitherto been deprived of the benefits of education. India needs to invest lot more in universalizing access to primary and secondary education. The Government will play its role. But we also need help and support of the private sector. And what Sunil set out as the vision for the Bharti Foundation is one of the most helpful and innovative way of promoting partnership between Government and the private sector in this vital area.

            The expansion of high quality tertiary education and applied research is also necessitated by the robust growth of our economy. I see sector after sector facing a supply constraint when it comes to skilled, qualified manpower. This is unacceptable in a country of over a billion people where many are still unemployed or are engaged in low income activities. We need to work towards providing education and gainful employment to our young people. Our government has constituted the National Knowledge Commission to seek new ideas on how we can modernize and expand our educational institutions and make them world class.

            India will soon have the world’s largest number of young people. We must invest in their capabilities so that they can become a great asset for our nation. It is my sincere hope that in the next two years, we would be able to transform the educational sector in India. I urge Indian industry to come forward and strengthen our hands in this process.

 I do recognize that we have to make rules and regulations pertaining to education more liberal to enable a quantum leap in private investment in education. We must recognize the fact that some of the great success stories in our educational sector have been the product of individual and group initiative and enterprise. While public investment in education must increase, I see no reason why we should not also facilitate higher private investment in education.

            I have therefore been heartened by the interest taken by many Indians living overseas, who are beneficiaries of our educational system, to invest in education in India. I believe it is the duty of our Government to enable such initiatives to fructify so that public-private cooperation becomes a solid reality in a reasonably short period of time. 

            I hope the inspiration provided by Sunil Mittal and the Bharti Foundation will encourage others also to take up public-private partnership in education and training. I am delighted to dedicate this institution to the nation and inaugurate your new premises.”

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YSR/DS/HS/RK/LV

 

 
 
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