Respected Thiru. Justice R.C. Lahoti, Chief Justice of India,
Thiru. Justice D.P. Wadhwa, Chairperson,
Telecom Disputes Settlement & Appellate Tribunal (TDSAT),
Thiru. G.E. Vahanvati, Solicitor General of India,
Ms. Helle Rod, Head of Secretariat,
The Secretariat for the Telecommunication Consumer Board and The Telecommunications Complaints Board, Denmark,
Thiru. Vinod Vaish, Member, TDSAT,
Distinguished dignitaries in the audience, and Delegates to this Seminar, Members of Media, Ladies and Gentlemen,

I am extremely happy to be associated in this very distinguished gathering of dignitaries and experts on a subject matter which holds vital importance for the healthy growth of telecommunications sector in the country.

The Telecom Sector in India has witnessed unprecedented growth in recent years. There has been over 300% growth in the last 5 years. About 1.5 to 1.8 million mobile subscribers are getting added every month. The tariffs today are one tenth of what we had about 5 years. National long distance charges have come down to 1/12th in the last 3 years. International tariffs have declined by over 70% in the last two years. The share of the private sector which was about 29%, a year ago, is now about 43%. Tele-density has increased from 2 in 1998 to 8 in 2004.

The exponential growth in telecom connectivity has brought about profound changes in life styles and has given communication abilities, hitherto unknown, to vast segments of the population. The telephone instrument particularly, the mobile telephone which was perceived as a luxury item has now become a necessity for the common man, particularly in the urban areas. People in rural areas also yearn for improved access to telephones.

All this has become possible because of the forward looking and pragmatic policies initiated in 1991 which gave priority attention to the growth and development of this sector and have helped in setting up institutions which have encouraged market competition and have provided a favourable and conducive environment for the healthy growth and expansion in this sector.

As many of you are aware, the telecom regulatory framework in India has taken some time to evolve and stabilize. The Government initially divested itself of regulatory functions with the enactment of the Telecom Regulatory Authority of India Bill of 1997 which led to the setting up of an independent telecom regulatory authority. The government further distanced itself from service providing functions with the corporatisation of the service arm leading to the creation of Bharat Sanchar Nigam Limited, with effect from 1st October 2000. The regulator was initially entrusted with the multifarious functions and responsibilities. Dispute settlement also fell within its purview. However, there was soon a realization that regulation and dispute settlement are two different sets of activities and there was a need to impart greater credibility and transparency to the dispute settlement mechanism in order to promote healthy competition and protect the consumer interests. As a result, the amendment to the Telecom Regulatory Authority of India Act, 1997 was carried out in the year 2000 which led to the setting up of a separate appellate and dispute settlement mechanism, namely, the Telecom Disputes Settlement & Appellate Tribunal (TDSAT).

The developments in the telecom sector are characterized by fast changing technologies, unleashing of market forces through growth of competition and spurt in demand, rising consumer expectations and vastly expanding requirements of easy and affordable telecom connectivity for a variety of uses, and from almost all segments of the society.

As the liberalization advances and the competition becomes the order of the day, some disputes between the service providers, as also between the licensor and the service provider and between consumers and service providers are unavoidable. To sustain the growth as also maintain the confidence of the investor, it is imperative that the dispute resolution mechanism works in tune with the changing dynamics of the telecom environment. The framework should have the attributes of a truly independent body and strong credible image regarding its fairness and impartiality. It should also work with a reasonable degree of speed. TDSAT was constituted keeping all these aspects in view. Unlike many other countries, where the normal courts have the jurisdiction to decide disputes between the service providers, in the telecom sector in India, with the creation of TDSAT, civil court jurisdiction has been barred in such matters. It can be safely said that TDSAT has served effectively the expectations and has imparted confidence amongst the stakeholders about its fairness and effectiveness. Recently, I attended an Investment Seminar in New York. One of the messages that was conveyed to the investors was regarding the transparent and effective dispute resolution mechanism that exists in India. I also conveyed that in spite of significant development in the sector, the disputes have been few and were mostly resolved at the level of TDSAT.

Although I have, in the beginning, mentioned that we have achieved unprecedented growth in the telecom sector in recent years, we have still a long way to go. The growth rate that we have achieved has to be sustained in the long run. As against urban tele-density of 20 over hundred population, rural tele-density is only 1.55 per hundred. A number of villages are still waiting for telephone connectivity. Broadband connectivity (256 Mbps) will now register significant growth. Huge investments would be needed to achieve respectable levels of connectivity in all these areas. The policy and regulatory framework would be put to test in future with the changing technology and growth in tele-density. The resources such as spectrum would no longer enjoy the luxury of surplus. Allocation will have to follow the principles of efficiency and pricing. Quality of services would become the benchmark for competition amongst the service providers. Prompt redressal of consumer grievances would determine the brand of the service providers. The sector, being technology driven, while adjudicating the disputes the Tribunal has been addressing various technological issues also. In fact, as the field is of techno economic nature, redressal of dispute has also to be techno-judicious redressal. Fortunately the policy-making functions in India are based on extensive consultations with the stakeholders. The Regulator is also required to hold extensive consultations with the stakeholders before giving his recommendations. All this helps in building up a consensus and contributes to transparency and fairness in the formulation of policy and associated guidelines and regulations. It goes without saying that a credible dispute resolution and appellate framework would hold special importance in achieving a stable policy and regulatory framework.

I am confident that these challenges would be met in the most professional and efficient manner. In the past, telecom industry has gone through many a crisis. It was with the cooperation of all the stakeholders and a mature understanding shown by all the institutions that a far-reaching policy decision was taken in 1999 in bringing about a change from the “fixed license fee” regime to the “revenue sharing” regime. Similarly, in early 2004 the Unified Access License regime was introduced which brought to an end major disputes in the telecom sector. I would like to point out that the size of the market is so huge and the work to be done so large that there is enough space for service providers to continue to grow and expand. Government remains firmly committed towards bringing about enhanced telecom connectivity by the healthy growth and expansion of the sector in tune with the requirements of the customers.

I am happy that TDSAT has organized this International Seminar and a number of distinguished experts from abroad will also be making their presentations. The accelerated growth of telecommunications in recent years has been a world-wide phenomenon. The development path of many countries has been quite similar. While the particular regulatory framework and dispute settlement mechanism adopted by each country would have characteristics suited to its specialized needs and circumstances, this is a great opportunity for countries to share their experience and there would be useful lessons to be learnt. Recognizing the pressing priority of establishing a successful dispute resolution framework in every country, ITU and the World Bank have got a study undertaken recently on current practices and future directions in dispute resolution in the telecommunication sector. I am informed that in this Seminar the results of the study would be shared with the participants and they will get an opportunity to hold discussions in this regard.

I am sure that with the participation of the various stakeholders and the invaluable inputs that could be given by the eminent experts, including those who have come from abroad, the deliberations would help us in reaching a better understanding of the complex issues involved and what needs to be done to meet the challenges ahead.

I congratulate TDSAT for organizing the Seminar. I wish all success to this meeting.

Thank you