Will India's Telecom Watchdog Have Any Bite?

A new telecom watchdog agency will help India prepare for the arrival of AT&T and Baby Bells - but it won't have much bite.

India's Communications Minister has signed off on a bill that would create a telecom watchdog agency - but only on the condition that some of its sharpest teeth are extracted first.

Beni Prasad Verma conditionally cleared a bill that would create the Telecom Regulatory Authority of India if Parliament approves. Verma reportedly agreed at a Cabinet meeting Wednesday to most changes to the original bill, suggested by a parliamentary review committee to strengthen the powers of the planned telecom regulator.

Verma rejected one section of the bill that would allow the agency to make decisions independent of the government, a key provision since the agency would be overseeing the government-owned Department of Telecommunications, which will retain its monopoly on long-distance and international calls.

What's more, the government is interested in filling all agency roles with government officials, going against the wishes of many in Parliament who want private officials in the agency as well.

India's telecom privatization began last year, when AT&T and some Baby Bells won licenses to operate cellular and wire-line services across the country.

Unlike the FCC and Britain's Oftel, the Indian agency won't grant licenses. Its main roles will be to enforce operator agreements, act on complaints from consumers, and resolve conflicts between the DOT and its private competitors.

A current or retired High Court judge will head the agency, traditional when the government sets up such institutions. The government may try to install members from its diverse departments, although objections from Parliament may extend positions to "respected" members of the public and businesses.