WTO AGREEMENT

Which brought down the custom duty from 85% in 1993 to 5% in 1999 has seriously affected Indian Electronics & Telecommunications and Computer Industry and made them to slowly close down. Job and experts have to migrate to developed nation. At the same time WTO agreement also compelled the nation to open Telecom Service Sector and nation witnessed the roll out of paging, cellular and basic services throughout the nation in very short span of 2 years.

COMPETITIONS

In paging and cellular and basic services made the telecom services charges fall down.

TECHNOLOGY

It is not only the competition which made the services made the telecom services charge fall, but also the Technology which reduced the cost of network from Rs.40,000 per lines in 1993 down to Rs.15,000/- per line in year 2000.

It is Technology which reduced the long distance circuit charge (per circuit per KM charge) by more then 50% to 60% it was introduction of digital switching technology which reduced the switch cost from Rs. 12,000 per line in Year 1993 to Rs. 3,000 in Year 2000, also causing reduction in outside plant due to distributed switching, OSP cost fell down from Rs. 18,000 per line to Rs. 5,000 per line.

Digital Transmission media over OFC, Microwave and Satellite circuit also went through reduction of the cost. Now with new technology from PDH to SDH and to WDM the cost of circuit is further going to fall down.

Packet Switching and Voice Over IP is going to increase the circuit utilization by a factor of 10 and thus reduce the cost of long distance call by a factor of 6 to 8.

PDH being replaced by SDH, new technology of WDM on fiber coupled with packet switching replacing circuit switching and competition on long distance telephone is going to reduce the International calls charges to USA form 25 per minute in 1995 to 10 to 20 S in 2004.

IT IS TECHNOLOGY COUPLED WITH WTO FORCED COMPETITION

INTERNATIONAL LEASE LINE

Here we stop talking about telecommunication, now let us analyze the impact of competition and falling long distance International Circuit Charge on Indian business, Indian Society and Indian Economy in wider sense and see how best can we take advantage of this WTO provision to best of our ability.

We in India with second largest population, largest English speaking population after USA, vast resources of Technical manpower, an excellent infrastructure of Human resource development both in Public and Private Sector, has now got a window of opportunity to stop

- BRAIN DRAIN

MIGRATION

And create climate for migrating job from developed nations to India.

Here too the opportunity is not everlasting. Indian lost the opportunity of FDI (Foreign Development Investment) to its competitor China, Thailand, Malaysia and Singapore etc.

HERE IS JOB MIGRATION MARKET

Luckily we are not competing with China but let us not loose this opportunity to:

Pakistan, Bangladesh, Sri Lanka, Nepal, Malaysia, Indonesia, Thailand, Philippines, and Latin American countries which is at higher stage of preparedness due to proximity to USA.

Our purpose of holding this Seminar is to mobilize all support to entrepreneur through Policy Maker, Financial Institutions, Technology Provider to be able to generate public opinion to encash this opportunity.

As policy maker let us see what is immediately required to promote this industry in India.

In USA 65% to 70% of Call Center running cost is labor next rent where as in India. 50% to 60% cost of Call Center running cost is the international lease line circuit cost; there is considerable possibility of further reduction of circuit cost due to technological innovation now being available.