India Telecom Summit 2007
Dcecember 12, 2007, New Delhi

Welcome Address by Mr. Habil Khorakiwala, President, FICCI

Dr. Manmohan Singh, Hon'ble Prime Minister of India

Thiru A Raja, Hon'ble Minister for Communications and Information Technology, Government of India

Dr. Shakeel Ahmad, Hon'ble Minister of State for Communications and Information Technology, Government of India

Dr. Amit Mitra, Secretary General, FICCI

Ladies & Gentlemen,

I would like to extend a very warm welcome to all of you to 'India Telecom 2007'. It is a great privilege to welcome the Prime Minister of India, Dr. Manmohan Singh and I thank him for agreeing to inspire us by his esteemed presence.

I am particularly grateful to Thiru A Raja who has led from the front and has been the driver behind this conference and exhibition.

I would also like to thank Dr. Shakeel Ahmad for all his support and presence.

And I also gratefully acknowledge the presence of Mr. Mathur, Secretary, Telecom and thank him and his team of dedicated officials in the ministry for supporting and working shoulder to shoulder with us.

In a short period of time Indian telecom sector has been recognized as the fifth largest in the world and the second largest among the emerging economies of Asia.

Sir, today, the Indian Telecom is on high growth trajectory with over 209.08 million mobile subscribers and increasing at 7-8 million additions every month. This offers an opportunity to catalyze economic change in the remotest and most backward parts of the country. Fortunately, we now have multiple technological options to spread connectivity to all corners. Many of these are on display at the exhibition which shows the advancements of these technological developments from becoming digital divide to digital opportunities.

The rapid growth in the telecom sector with greater transparency and efficiency can be attributed to the dynamic and entrepreneurial spirit of the telecom companies unleashed due to various pro-active and positive policy measures taken by the Government.

But the task that faces us ahead is full of challenges with the target of 500 million telephone connections and 80 million rural connections by 2010. Obviously the roll out in rural areas would be the critical factor in achieving this target. Since these are low-income areas, affordability would be a key issue in accelerating the rollout. I would urge the Government to take initiatives to reduce the cost of rollout so that teledensity targets could be met.

Last mile access has been one of the major constraints in the growth of broadband connectivity. The greatest challenge is to achieve the 20 million broadband subscribers target by 2010, which was only 2.67 million by the end of September 2007.

Easy availability and access to reasonably priced telecom infrastructure is crucial for Telecom Operators to reach out to the rural markets with an affordable service offering. The other essentials required for faster uptake that present untapped opportunity in this market is the need for low cost and easily maintainable PC/Internet access devices and creation and customization of relevant content.

Sir, may I urge you to please ensure that similar benefits are not compromised in the low-income rural areas while the spectrum policy is being formulated.

Sir, with the growth of Indian telecom sector and with FDI limit to 74%, foreign investors have shown renewed interest in the Indian market. Reduced long distance license fees and easier roll-out obligations have also encouraged foreign investors. We expect investment potential of around US$20-25billion over the next five years.

Sir, with these developments, the role of transparent and technology neutral regulation becomes imperative, since telecom can play a substantial role in fostering socio-economic development across the region, through the proven virtuous circle of GDP and tele-density growth.

Sir, I believe that the time is apt for us to show-case this growth and opportunity to the world and I am pleased to say that India Telecom - an international conference and exhibition, is an ideal step towards this initiative. This is the first of its kind event in the telecom space where the Government of India is being associated.

I am happy to mention that India Telecom 2006, the first year of the event was a great success with participation from over 20 countries with 12 international speakers. There were more than 15,000 visitors and over 350 delegates who participated in the conference. This year the response has been equally exciting with 17 international speakers and various international delegations consisting of representatives from industry, Government and academicians.

I hope that India Telecom 2007 with the expertise of national and international speakers along with inputs from all stakeholders with vast and rich knowledge domain will bring out useful recommendations for policy makers.

I once again welcome you all to this great event.

Thank You.