Govt sets export target of $10 bn for telecom equipment

Govt sets export target of $10 bn for telecom equipment

New Delhi: With the telecom equipment manufacturing base in the country evolving, the government has set a target of $10 billion for equipment exports by 2012.

For this purpose, an Export Promotion Forum (EPF), under the aegis of Telecom Equipment Manufacturing Association (TEMA) has been set up. EPF was inaugurated by telecom minister A Raja. The forum has been approved by the Department of Telecom and Commerce Ministry, the nodal ministry of all export promotion councils.

The EPF will be converted into Export Promotion Council in due course.

Raja said to achieve the projected target of 650 million subscribers by 2012, the country would need equipment to the order of $84 billion.

While the projected figure for the domestic equipment need is $75 billion, the rest is meant for exports, said TEMA President N K Goyal.

MNCs such as Nokia Oyj, Ericsson, Nokia Siemens, realising the potential of the increasing telecom opportunities in the country, have already set up bases here to take advantage of India market.

In July, the country added 7.3 million mobile subscribers, the highest so far.

Raja said with the present level of more than 230 million subscribers and an addition of over seven million per month, we are all set to achieve the target of 250 million well ahead of the year-end. Our next targets are 500 million connections and 20 million broadband connections by 2010.

It is expected that about $1-2 billion will be invested in the telecom equipment manufacturing projects alone in the next one to two years, DoT Secretary D S Mathur said.

TEMA has asked consultant PwC to conduct a study about the domestic and international market for Made-in-India telecom equipment.

Earlier, telecom equipment manufacturing was limited to meeting the domestic requirement and there no emphasis on the export from India. Now that manufacturing base has emerged and more and more investments are being committed, there is need to give focused attention for exports as well, he said.

The basic objective of TEMA EPF is to promote and develop the export of telecom equipment and services from the Country, said Goyal.