Wednesday, July 31, 2013: To boost the domestic manufacturing ecosystem, the domestic telecom equipment makers have reiterated that government should speed up the notification on Preferential Market Access (PMA). This would also help the government in better handling of security concerns in the country.
For the time being, the PMA policy has been put on hold by the government until the issuance of further directives. Foreign companies and trade associations have criticized the PMA policy because it favours indigenous manufactured telecom products.
The government is caught between concerns about security and pressure from international community. The policy claims that at least 25 per cent of the value additions should happen in India and within five years the figure should increase to 65 per cent. It has been asserted by International telecom equipment manufacturers that Indian manufacturers lack the expertise and infrastructure to meet the exact demands of the India telecos.
Moreover, domestic telecom vendors claim that they are capable enough to meet international standards as they have the required technology. With the new mandate in place, more employment would be created and would also lead to a level playing field.
Domestic vendors are of the view that when telecos move towards rural side, they would go for domestic manufacturers to fulfill their value for money equipment need. Rural telecom penetration accounts for 30 per cent out of the total penetration.
Telecom Systems Design and Manufacturers Association (TDMA), believe that the present telecom equipment comprises very complicated and advanced elements which are in millions and have software codes in which spyware and malware can be implanted efficiently, therefore, there is a possibility that the country’s security testing capabilities might not be able to capture it.
PMA policy is being opposed by international vendors on the pretext that local manufacturing should not be linked with security as DoT has already specified guidelines for it.
Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine
