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New Indian IT Plan Drops Telecom Privatization Proposal: Page 2 of 3

The previous government did privatize two government-owned carriers, Videsh Sanchar Nigam Ltd., a long-distance
communication services carrier, and CMC Ltd., a software
company. Both were acquired by the Tata Group.

The latest anti-privatization move was expected since India's new coalition government needs the support of Communist parties to remain in power. The Communist parties here are ardent advocates of state ownership.

Other proposals in the IT plan were largely designed to assure universal Internet connectivity and reduce
telecom connection costs for consumers. Maran said
the government will revamp the existing telecom policy to take advantage of the latest technology and
to reduce costs. "Providing broadband connectivity to all
at the most reasonable prices will be my top-most
priority," Maran said.

The minister said India will seek to leapfrog current wireless technologies and move to 4G technology. He said the country has the market volume and technology skills needed to be a significant player in 4G technology. He said India will establish a National Center for Excellence in 4G.

Among the government's other proposals were: migrating to IPv6 by 2006; promoting research and development in IT and
communications; making India the outsourcing hub for
software development; doubling telephone
penetration within three years; and connecting all Indian Internet service providers to a national Internet
exchange to achieve efficient traffic routing.