India should have a telecommunications policy regime which is pro-competition but ensures correct pricing and fair allocation of airwaves, Prime Minister Manmohan Singh said Wednesday.

India has one of the fastest growing telecom sectors in the world with 8 million new subscribers every month, mainly in the mobile telephone segment, according to official data.

The rapid growth has led to a shortage of airwaves and Singh said his government was taking steps for vacation of spectrum by existing users and was considering ways of making more spectrum available for commercial use.

"The policy regime for making spectrum available should be fair, transparent, equitable and forward looking," Singh said while addressing an annual industry conference.

It should not create entry barriers for newcomers or slow continued growth while keeping in mind the revenue potential for the government. "In the final analysis, the key issues are correct pricing, fair allocation rules and a competitive stance," Singh said.

India currently has about 250 million telephone subscribers, but the prime minister said the services had yet to penetrate vast stretches of rural areas.

"I had heard of plans for a phone in every village some 20 years ago. We have still not reached that goal," he said urging all key players in the sector to focus on increasing rural telecom connectivity. About 70 per cent of India''s population live in rural areas.

"The spin-off benefits will be felt not just in telecom, but right across the economy as a whole," Singh said.

The Indian telecom sector, after undergoing rapid growth in urban and developing areas, is gradually entering a phase of consolidation, which is likely to involve competitive pricing, strategic manoeuvres and market expansion.

"The key enabling factors for this sector have been liberalization, reforms and competition. We must never forget these principles," Singh said.

The Indian government would develop a forward-looking policy regime to encourage investment in manufacturing in the sector to support the telecom networks, he added.


Source: dpa