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Reduce tariff for international calls from India, urge AT&T, MCI

Major American telecom giants including AT&T and MCI have pressed for reduction in tariff of international calls made from India. The issue was raised by their representatives at a meeting with visiting Communications Minister Ram Vilas Paswan.

Paswan assured to look into the concerns expressed by major US telecommunication companies as he stressed India's commitment to opening up the communication sector to private investment and encourage introduction of latest technology.

Paswan, who wound up a week-long visit to the US, during which he had 'very profitable' discussions with American companies and Non-Resident Indians, or NRIs, keen to invest, said India had a big potential market but there was a need to set at rest the misgivings that the investors have.

He said during his discussions in San Francisco, Chicago, Washington and New York, he had been able to clear several misgivings expressed by the investors.

Paswan said his decision to set up an advisory committee of NRIs on telecom sector has been welcomed.

This will help NRIs who are keen to invest their money and talent and the government by providing a channel for continuous dialogue and also the country in inducting latest technology.

Besides, the government is also making laws that would encourage investment in all areas of telecom sector as also induction of latest technology, Paswan said.

Replying to questions, he said he found great interest in the NRI community especially in the Silicon Valley where Indian entrepreneurs and professionals have carved a niche for themselves.

He said India has a very low telephone density at 2.7 per hundred in urban areas and 0.6 in rural areas. The government has drawn up ambitious plans to increase it to seven per hundred by 2005 and 15 by 2010.

In rural areas, the density is proposed to be raised to four per hundred by 2010. The statistics show how big is the scope for investment, he added.

Regarding opening up of the international long distance sector, he said that Videsh Sanchar Nigam Limited, or VSNL, has monopoly till 2004 but he is looking into how things could be speeded up.

He also defended his decision to provide rent-free telephone to all employees of the telephone department, asserting that it would help improve the efficiency.

PTI

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