NOTE FOR THE RECORD
CALL ON THE INDIAN MINISTER OF COMMUNICATIONS BY SIR MICHAEL MARSHALL
1. I accompanied Sir Michael on a call on Mr Sukh Ram, the Minister of Communications, at 1130 on 13 April. Sir Michael began by explaining his interest in telecommunications as a former minister who had dealt with the issue and now with a commercial interest in the fortunes of Cable and Wireless. He asked how Mr Ram expected the telecoms sector to develop in India in the next few years.
2.
Mr Ram said that telecoms had been a government monopoly but was now wholly open to the private sector. A series of tenders had been floated in value added services. But these had not been entirely straightforward. There had been an appeal against the award of cellular licences. This had caused a delay. However the court had not attempted to interfere in the criteria for award of the licences. His own inclination was not to appeal against the High Court decision but to find an amicable accommodation between those already granted licences and the complainants. He asked whether Vodafone were happy with the award of a licence in Calcutta. would not wish to disturb this if they were.
He
3. Sir Michael asked about the exclusion of Cable and Wireless from the cellular bid in conjunction with the Hindujas. This seemed to have involved a technicality. If there was any flexibility in looking again at the cellular bids, he hoped this decision too could be reviewed. Mr Ram was doubtful whether this would be possible unless a whole fresh tender was floated, and this would take a lot of time.
4.
Sir Michael raised the interest of Cable and Wireless
in buying a stake in VSNL. Cable and Wireless had an excellent relationship with many governments around the world. They could provide access to resources, technology and a wide international network. Lord Young, the Chairman of Cable and Wireless, was interested in visiting India to look further at the prospects. Mr Ram said he saw no reason why such an offer could not be considered. Sir Michael went on to say that, if Mr Ram thought that there was any part of the telecommunications network in need of upgrading or provision of a alternative structure, e.c. establishment of a new network using the railway links, Cable and Wireless and British Telecom were interested in working together with an Indian public of private partner to look at this.