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'In terms of the telecom sector, I would rate the Budget 7 out of 10'

BUDGET 2000

Virat Bhatia

In terms of the telecom sector, I would rate the Budget 7 out of 10. Once we find out more details, that could probably be higher.

There is consistency between the objectives of the National Telecom Policy and the Budget. Cost of access equipment and infrastructure is being brought down, wireless will have a real chance to supplement the government's telecom penetration objectives, cost of fibre optics is also down... The fine print is crucial, but so far the going is good.

Infrastructure sectors, especially like telecom, have a lot of related reforms that must be carried out alongside the Budget. These are especially on issues like the competition law, the need for a strong regulator, the need for a level playing field and to allow ease of investment. These are not really Budget issues, but are far more important than the cost itself, which is what is most impacted by the Budget.

A balance between policy deliverables, a consistent regulatory environment and a forward-looking Budget could help. Any one of them being out of sync will create challenges.

I think there is a need for balance. Rural connectivity is as critical as urban infrastructure and, finally, a premier business high-speed information highway is required. The rural segment seems neglected because the policy encourages investment in urban areas. A balance, with incentives for investment rather than a rent for opportunity, which has been the norm so far, needs to be followed. Universal service obligations and proposals related to rural connectivity in the NTP are visionary, but need serious implementation efforts.

Virat Bhati is the managing director, AT&T India.

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