On the draft interconnect agreement: Telecom companies are complaining that the proposed interconnect charges are excessive. Their plea: they should not be treated like other customers of leased lines. But a leased line is a leased line. Even if the claim that other countries do not charge interconnection charges is true, the same rule cannot be applied to India. In a commer-cialised regime, nothing is free. The basic tender said interconnection would be given. While it is true that there was no mention of charges, it's also a fact that nobody said it would be free.
On the magnitude of financing licence fees and building of networks in circles by prospective private operators: We obviously can't offer advice on financing of projects. The thumb rule is that the capital cost for one line is about Rs 35,000. As per our estimates, telecom companies, all put together, would need to raise about Rs 5,500 to Rs 6,000 crore every year as debt, apart from the equity component. Compared to the gargantuan funds that the power sector needs every year, the telecom industry's needs appear peanuts in comparison.
On the current deadlock in the basic services privatisation process:There was a lull in April-May. But the process is now picking up. I am optimistic that the air will clear in the next few weeks and issues like interconnection charges will be sorted out. When things get moving in 10 circles, for which letters of intent and the draft interconnect and licence agreement have been issued, it will pave the way for acceleration of the privatisation programme in 11 other circles.
