DOT Latest Tweak In Public Procurement Policy Should Also Apply To Private Companies To Maintain Level playing Field For BSNL

Digital Bharat Nidhi Funding Notification Affects Multiple Projects Nationwide.

Notification for Projects Receiving Funding from Digital Bharat Nidhi

The Digital Bharat Nidhi, a key component of the Indian government’s efforts to promote digital payments and financial inclusion, has issued a notification that affects various projects across the country. This notification extends to projects that involve funding for goods, services, or works, where the Digital Bharat Nidhi has awarded contracts through bidding processes.

Key Provisions of the Notification

The notification applies to all projects that receive funding from the Digital Bharat Nidhi, regardless of the funding mechanism used.

Nokia has been a long-time partner of BSNL, and the company has been providing 4G services to the Indian market since 2010. The partnership has been beneficial for both parties, with Nokia providing the necessary infrastructure and BSNL offering the network coverage and customer base.

The Benefits of 5G for BSNL**

The rollout of 5G technology in India is expected to bring numerous benefits for BSNL, including improved network speeds, increased capacity, and enhanced customer experience.

The Need for Strengthening BSNL/MTNL

The Indian government has been facing criticism for its handling of the BSNL/MTNL, a state-owned telecom company. The criticism has been centered around the company’s financial struggles, lack of investment, and poor customer service. In response to these concerns, a civil society organisation has called for the need to strengthen BSNL/MTNL.

Key Issues Facing BSNL/MTNL

Financial struggles: BSNL/MTNL has been facing significant financial struggles, including a large debt burden and a decline in revenue. Lack of investment: The company has not received sufficient investment to upgrade its infrastructure and improve its services. Poor customer service: BSNL/MTNL has been criticized for its poor customer service, including long wait times and unresponsive staff.

Strengthening public sector telecom entities can promote self-reliance in the Indian telecom sector.

Strengthening Public Sector Telecom Entities

The Indian telecom sector has been dominated by private operators for decades, with the public sector entities playing a relatively minor role. However, this trend is changing, with the government taking steps to strengthen these entities.

Why Strengthening Public Sector Entities Matters

Strengthening public sector telecom entities like BSNL and MTNL is crucial for promoting self-reliance in the telecom sector. By having a robust public sector presence, India can reduce its dependence on foreign companies and promote local entrepreneurship. * Reducing Dependence on Foreign Companies: India’s telecom sector is heavily reliant on foreign companies, with many of its major players being owned by international conglomerates.

The Telecom Policy Conundrum

The Indian government has been grappling with the issue of telecom policy for quite some time now. The Department of Telecommunications (DOT) has been trying to strike a balance between the interests of various stakeholders, including public sector enterprises (CPSE) telecom companies and private telecom operators. However, the recent developments have raised concerns about the dominance of foreign players in the Indian telecom market.

The Rise of Foreign Players

Foreign players have been increasingly dominating the Indian telecom market in recent years. This is largely due to their ability to invest heavily in infrastructure and technology, which has given them a significant edge over their Indian counterparts. Some of the key factors that have contributed to the rise of foreign players include:

Deep pockets: Foreign players have access to vast amounts of capital, which has enabled them to invest heavily in infrastructure and technology. Global expertise: Foreign players have access to global expertise and best practices, which has helped them to stay ahead of the curve in terms of technology and innovation. Strategic partnerships: Foreign players have formed strategic partnerships with Indian companies, which has helped them to tap into the Indian market. ### The Impact on Indian Telecom Companies**

The Impact on Indian Telecom Companies

The rise of foreign players has had a significant impact on Indian telecom companies. Many Indian companies have struggled to compete with the foreign players, which has led to a decline in market share and revenue.

The Problem with PLI Schemes

The Production Linked Incentives (PLI) scheme, introduced by the Indian government in 2020, aims to boost domestic manufacturing in the telecom sector by providing subsidies to private companies. While the intention behind the scheme is to promote local production and reduce dependence on imports, it has raised concerns about the uneven playing field it creates.

Uneven Playing Field

The PLI scheme provides subsidies to private companies, which can lead to an uneven playing field. Public subsidies can create an unfair advantage for companies that receive them. This can lead to a situation where some companies are able to produce at a lower cost than others, making it difficult for smaller companies to compete. ### Impact on Competition*

Impact on Competition

The PLI scheme can lead to a decrease in competition in the telecom sector. Companies that receive subsidies may be able to produce at a lower cost, making it difficult for smaller companies to compete. This can lead to a lack of innovation and reduced investment in the sector. ### Alternative Solutions*

Alternative Solutions

Instead of providing subsidies to private companies, the government could consider alternative solutions such as:

Investing in research and development to improve the efficiency of domestic manufacturing. Providing training and support to smaller companies to help them compete with larger companies. Encouraging foreign investment in the sector to bring in new technologies and expertise.