Maran says future is in wireless communication

New Delhi, Aug 2 (UNI) The production of communication equipment locally was on the rise and it would match the spurt in demand in the coming years, Communications and Information Technology Minister Dayanidhi Maran today said.

The government wants to increase the indigenous manufacturing capacity in the fast-growing communication sector, Mr Maran told the Lok Sabha during Question Hour.

Global communications equipment giant Motorola is setting up a 1.4 million-capacity mobile phone manufacturing unit in India next year, he said.

This is in addition to the 2 million-capacity Nokia factory in Chennai, he said adding South Korean companies Samsung and LG were also setting up mobile phone factories soon.

According to the Minister, Sony Ericsson was also finalising a deal to set up a manufacturing unit in the country.

''The future is in wireless communication,'' Mr Maran said.

He admitted that the Telecom Equipment Manufacturers Association and other industry associations have indicated ''some constraints'' faced by the indigenous telecom equipment manufacturing industry in the country.

The issues like inadequate infrastructure, high cost of capital and high transaction costs, however, are problems faced by most of the industries, he added.

The Planning Commission, he said, has set up working groups in the Telecom and IT sectors to make recommendations on policy matters relevant to the formulation of the Eleventh Five Year Plan.

Ruling out any plan to seek the expertise of Indians abroad in the Telecom sector, he said this was not necessary as there is ''enough expertise in our own country''.

The country is adding 4.5 million-5 million mobile phones every month, he said. ''That is the population of the entire Finland.'' Mr Maran gave the figure of 150 million mobile phone users in the country at present, which he said would go up to 250 million ''by the end of next year''.

The number of people using mobile phones in the country was 75 million in 2004.

''There is enormous potential for growth in the Telecom and IT sectors,'' Mr Maran said adding the Telecom sector was growing at a rate of 40 per cent and the IT sector at 30 per cent per year.

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