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TEMA refutes Booz & Co Report on Indian Telecom Manufacturing

  • Thursday, May 17, 2012 12:14PM IST (6:44AM GMT)
Challenges the terminology of “Market Protectionist” measure for Govt’s PMA policy
New Delhi, Delhi, India:  The Telecom Equipment Manufacturer's Association (TEMA) of India has raised concern in a response to the recent report on the Indian ‘Indian Telecom Equipment Manufacturing sector'. In a communication to the Honorable Minister of Communication & IT Mr. Kapil Sibal, TEMA has pointed out that the report is an attempt to polarize and paralyze the efforts of Government of India to incentivise the local innovation and manufacturing.

The study done by Booz & Co was sponsored by the Cellular Operators Association of India (COAI). According to TEMA, contrary to the Government of India's thought process, the report seems to conclude that there is not much scope for the Indian Telecom Equipment Manufactures in the current world scenario. According to the Booz & Co report, "India will account for only three (3) percent of the global market by 2020, therefore self-reliance is not a viable tool to drive the globally competitive economies of scale".

According to the TEMA communication to the Honorable Minister of Communication, the telecom equipment market is expected to grow to US$40 billion by the year 2020, up from current level of US$ 10 billion, is in itself is attractive proposition for the current foreign equipment suppliers to discourage home grown telecom equipment manufacturers.

"The report of Booz & Co is based on surmise and conjecture completely ignoring the growth potential of the domestic manufacturing in India, to which Government of India is committed. This report in a way takes this great country back to the post industrial revolution and British Raj in India, wherein local industry was systematically eroded in order to promote the British Industries. During that time, few Indian businesses supported export of indigo and cotton and import of cloths spun by factories in Lancashire and import salt from UK", said Mr. Ashok K. Aggarwal, Honorary Director General, Telecom Equipment Manufacturers Association (TEMA).

The TEMA communication further suggested that the Government of India should not take into consideration the Booz & Co Report as it is against the national interest.

"The Government should not act at the behest of the foreign equipment manufacturers who are trying to ensure that domestic manufacturing does not take place in this country and we, as a nation, always remain dependent on the virtual cartel of a handful of foreign suppliers in the field of telecommunication which is highly sensitive to fiscal/physical security, strategic and forms part of critical infrastructure of the nation, "added Mr. Aggarwal

About TEMA

Established in 1990, Telecom Equipment Manufacturers' Association of India (TEMA) is recognized by the Government of India as the National Apex body to represent telecom Technology Providers, Global and Indian, Private and Government owned companies.

TEMA plays the critical role of advising the government and influencing decisions relating to Indian telecom industry. TEMA also enjoys the privilege of proposing names of technical experts from the industry to various telecom committees of the Government of India and major national industry associations for valuable contributions at every stage of the evolving telecom manufacturing sector in the country. TEMA has membership of more than 150 members.

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