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Ring Side view of Indian Telecom Circus

India- happy hunting ground for expoitation

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I came across this link via ZD Net. Surprisingly, Financial Express (from where this article is sourced from), hit the nail on the head. I don’t find much favour with it’s journalistic standards. That’s my opinion though.

It’s become very obvious to me as to why is being compromised. I shall touch on the details in a later post but have a look for yourself. I quote selectively from the article.

For South Korea, 72.8% of its population use computers and 70% use the today.

While emphasising these facts at a recent talk in a World Bank seminar, Cheung Moon Cho of the Korea Agency for Digital Opportunity and Promotion (KADO) pointed out that in the early 1980s, its telecom infrastructure was very poor, with a 100% dependency on imported equipments and less than 7% tele-density. In a sense, South Korea’s position then was similar to India’s position in the early 1990s

In the early 1990s, it took up the indigenous development of ADSL, digital TV and TFT-LCD technology. A few years later, it decided to back the development of technology in Korea in order to become a leader in the field.

The problem here is that since the Research and Development lacks here in India in anyone of the exisiting technologies(CDMA or ) we have to rely on the hand me down stuff of the Europeans. This is indeed disgusting for a nation that aspires to be a super power.

When it found that its early partnership with Qualcomm was resulting in a significant royalty outflow from the country, it developed its own standard Wi-Bro, which would enable domestic companies like Samsung, LG and Hyundai to become leaders in the world.

This is the same problem that is there with and ’s. Can we know how much are we paying for the outflow in royalties and feeding fat the higher ups in US?

South Korea wants to emerge as a global leader in the 21st century and knows that leadership in technology is the key to this. It does not talk about “technology-neutrality” and did not hesitate in preventing the deployment of competing comparable technology (in this case, GSM) within the country. In fact, it continues to do so.

It is the same situation in India too but we are overtly dependent on the foreigners and now to source our needs to have telecom infrastructure. For all those juvenile who claim that privatisation has resulted in better “economy”, let me retort. The likes of private players that refused to develop indigenous technology are no more worse than traitors.

South Korea is smaller than a couple of states of India Yet, it has set it’s sights high enough to emerge as a telecom leader in the world.

Further it stesses that South Korea has a strong belief in it’s technologies and it knows how to leverage those technologies for it’s own benefit. Rather than pander to the likes of World Bank or IMF Economists.

India must have faith in it’s own capabilities. Kick out the MNC’s and develop our own standards and then export them. On the world stage, we are no where near the standards of a develped country. It does pain me to think that even after 50+ years of Independence, we are still a “developing country”. 

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Telecom is one example.
Insurance. Banking and now foolish attempts to open up retail too. Arguably it's a complex argument.

Each has it's merits and demerits. But when we can be self reliant in many areas, why not these?

I d agree with you about the dark fibre bit.
GAIL has signed on to provide ISP services nationwide. Similarly Rail Tel. Private companies maybe able to lease the bandwidth and provide end to end solutions. Let's hope!

"Opening up of Economy is the right thing. But the access is to remain with the Government. Problem is that Government has barted away it’s natural advantages which would be difficult to reverse. No where in the world, they would allow investments to such an extent as India does."

Can you give some examples of this ?

Are they selling the country short ? ..are they moving too fast ? Actually these questions are directed at the previous govt, i don't think many ppl expect the current one to produce anything much.

On a tangent i was discussing the bandwidth situation in India with friends, and was told there is a lot of dark fibre coming into the country.

Not much use that is it ?

The key is having powerful enough routers at the backbones that can handle the volume. I can't see any way currently to do this other than to import the required equipment. But if we have to wait to grow that capability ourselves i fear we might be in for a world wide wait for some time. I'm thinking this is an important a bottle neck, reliability issues not withstanding.

BSNL can't give ppl the bandwidth we want, since they don't have the capacity currently.

blr_p I wouldn't deny that you have raised a valid point.However, that's what the impression has gained on ground that we ought to open up the economy and that Western or Chinese investments are good for our nation.

That's of course a pure Bull Shit.
I could wax on about the perils of neoliberalism; India didn't have a space programme but that didn't stop us from having independent and dedicated set up to launch satellites. Arguably, much of the push has come frm Russia and it was a bothced up attempt in couple of situations, but we are self reliant. Launch our own satellites. That's because we wanted to.

Similarly, what's stopping the legions of IIT students? Well, most of the Engineering students are running towards IIM's- the investments in them leaked out. That's because there are not many institutions of excellence to absorb them. Pure Science has got a rough deal always here. If we want to, we can do it, Thats the bottom line.

As for as World peace, it's clearly a Utopia- this one you got it bang on target!

Opening up of Economy is the right thing. But the access is to remain with the Government. Problem is that Government has barted away it's natural advantages which would be difficult to reverse. No where in the world, they would allow investments to such an extent as India does.

CII or NASSCOM rule by proxy because they give out huge funds for elections. Hence they want a "conducive business atmosphere".

Lot more than meets the eye dude.

Hmm...how bout an opposing view.

Your rant sounds like you advocate a return to the self-reliance that India has been going through ever since it got independent. We won't import anything instead we grow our own.

Well 50 yrs later we have strengths in certain sectors. Manufacturing electronics is not one of them. Heck entire industries have been wiped out in the west as they could not compete with stuff coming from the far east.
Witness GM laying off 30k workers cos the japanese are hitting them that bad.

You can't be saying if we can make stuff better than them then we will be better off. They can dictate what standards are used in their own country but as AFAIK they export equipment that meets western stds when its for sale abroad. OK they pay a royalty for it but they more than make it up on sales in such places.

No, its now about inter-dependance. The opening of the economy in the early 90s has set in motion a defnite movement in this direction. Get what we can from abroad if it's cheaper and work on our strengths, is the name of the game nowadays.

Heh if everyone is over dependant on everyone else we might finally reach that utopia of complete world peace ;)

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