Garry Jacobs The Ministry of Communications is drawing up plans for a massive Rs.12,000 crore investment in telecommunications during the Seventh Plan including a sizable allocation for expansion of the rural phone network. According to the International Telecommunications Union, India is the first country to fully recognize the vital role which telecommunications play in development and to make a substantial commitment to rapid expansion of its telecommunications network. It is not often realized that the present problems It is uncertain whether the final allocation for telecommunications in the Seventh Plan will come up to the Ministry’s proposed level. But what is certain is that even if Rs.12,000 crores is invested over the next five years, the immediate demand for expansion of the system will not be fully met and the developmental impact of growth in this sector will be only partially achieved. The density of There are three essential ingredients required for growth of the telecommunications network: (1) a wide range of new technologies which can improve performance, reduce costs, and speed up expansion; (2) enormous financial resources for investment of existing facilities and introduction of new ones; (3) sophisticated management systems to ensure high performance and maximum efficiency of the network. Over the last 100 years, American Telephone and Telegraph Company has developed and operated the largest and most efficiently run telecommunications network in the world. AT&T’s subsidiary, Western Electric, is the largest manufacturer of telephone equipment in the world. AT&T’s research wing, With these facts in view, The Mother’s Service Society approached AT&T to examine the possible scope for their participation in development of the Indian telecommunications network through direct investment in During the meeting which took place, the representatives of AT&T expressed surprise at the extent of The Society concludes from this meeting that an initiative by the Government of India would be well received and productive.
June 28, 1984