PMO reverses DoT steps on equipment

NEW DELHI: In an embarrassment to DoT (department of telecom), the PMO (Prime Minister’s Office) has not only intervened but actually reversed steps taken by the DoT over equipment security measures just last week. This is a telling example of the complete mess in the telecom ministry, which since January, has made multiple amendments on the issue of equipment imports.

According to a PMO directive, "concerns are being expressed in several quarters regarding some of the provisions of the template agreement between the telecom service providers and vendors of equipment, product and services. DoT is requested to examine, in consultation with MHA (ministry of home affairs), whether there is any merit in any of the concerns and whether, in the light of international best practice, some alternative mechanism in resolution to these issues needs to be put in place. This may kindly be concluded within a period of two months".

The PMO suggests that, "in the meanwhile, both the earlier security vetting regime and the new agreement based regime may be operated concurrently with telecom service providers free to adopt either option." ToI tried to reach DoT secretary P J Thomas for his comments on this major reversal, but he was unavailable. This new twist comes as a ray of hope for companies like Ericsson, Nokia Siemens, Alcatel Lucent and Cisco.

These firms were up in arms against the decisions of the government just last week, forcing telecom equipment providers to share their source codes. The American and European companies found this particularly onerous.
Even though the industry has tried to reach out to DoT, senior officers in the DoT have admitted to being "mere postmen". According to them, all decisions are being made by the home ministry. Since the DoT has been left with very little control, these officials admit to now avoiding meetings with the industry.

After attempting lobbying through international chambers such as Amcham and the USIBC and failing, these companies then mounted a frontal attack directly with the home ministry, PMO and through their respective governments.

DoT issued an order on December 3, 2009, saying operators can only import telecom equipment after giving a self certification with respect to security compliance. On July 28, 2010, DoT said a template must be signed by the vendors and operators for the procurement of equipment. This template involved sharing of the source code and a penalty of Rs 50 crore for each purchase order plus the value of the purchase order.

The main issue was that the process adopted by the DoT was uniquely opaque as it limited consultation only to a handful of mobile operators. Since consultations on licence amendments are legally within the powers of Trai, unless Trai is invited to hold a wide consultation and involve all stakeholders it is highly likely that the DoT will get it wrong yet again.