Broadband Development Under NaMo – DoT Secretary

Mr M. F. Farooqui, Secretary, Department of Telecom met Analysts and was very optimistic in his views about the Telecom sector messed up by Sonia Gandhi led Congress Government in the last 10 years. Policy making, as well as implementation, is likely to be quicker under the new government, and decisions can be expected to be loud and clear, as per Mr Farooqui.

Broadband Bonanza likely to happen as Mr. Farooqui pointed out,

Under Mr Narendra Modi’s leadership, the state of Gujarat has witnessed good infrastructure development for Broadband – we could see similar efforts being made by the new central government now too. Given the strong growth potential, the results could be something transformational.

Spectrum auctions is another area where the new government can add more clarity by coming out with a set roadmap. Mr Farooqui indicated that the reserve prices of the auctions should remain at reasonable levels. On operating landscape, the current level of competition is considered reasonable given we still have 4-5 key players in most circles.

Regarding OTT players, there aren’t any significant regulatory hindrances that stop telcos from charging the OTT providers. On M&A, India’s strong data potential could attract some foreign players to participate, according to Mr Farooqui.

Current market dynamics appear to be in favour of the incumbents – competitive landscape is stable which bodes well for operating trends and on the regulatory front, we can expect more clarity with the new government.

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