http://www.hindu.com/2006/06/19/stories/2006061904461200.htm
U.S. unhappy over telecom clause
Sandeep Dikshit
Object to ban on foreign access to networks
NEW DELHI: The United States expressed concern
over a key clause in India's deals with
foreign-owned telecom networks. This condition
was incorporated to address the Left parties'
securityconcerns after the Government decided to
hike the foreign direct investment (FDI) limit from 49 to 74 per cent.
The U.S. objected to the ban imposed on foreign
equipment manufacturers, which prevented them
from repairing faults through remote access. This
was to preclude the possibility of spying or controlling networks from abroad.
The Government, however, left an escape clause,
under which remote access can be provided in case
of 'catastrophic equipment failure' or the
network being incapacitated for a long period.
But, the companies would have to take the
permission of the Intelligence Bureau (IB) as the
remote access password would be valid only for a
limited period of time. The Government also
incorporated additional safeguards, including a
provision to support the IB in recording
transactions as part of on-line monitoring.
Though the Union Cabinet had cleared the proposal
to hike FDI in February last year, its
notification was held up for eight months to
allow for clarifications on issues such as
ensuring security while repairing imported equipment.
Citing its concerns vis-à-vis the telecom sector,
a U.S. trade representative brought out a paper,
listing the restrictions on remote access to
networks, traffic routing and re-sale of private lines.
It said: "The Indian Government has put in place
new requirements on how international networks
are managed in India, which U.S. operators
believe seriously impede their ability to do
business. In the face of widespread complaints,
the Indian Government agreed to delay
implementation of these rules until July 2006.
Whether concerns of U.S. carriers can be
addressed in the interim period remains unclear."
At the same time, the paper conceded that New
Delhi had taken "positive steps towards
liberalising and introducing private investment
and competition in the telecommunication service market."
The U.S. also referred to its concerns regarding
India's "weak multilateral commitments" in basic
telecommunication and an "apparent bias" of the
telecommunication policy towards Government-owned service providers.
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Received on Sat Mar 02 2024 - 00:57:15 CST