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Indian Operators Protest Against $5 Billion for Security Upgrades

India's mobile networks have responded to the recent regulatory changes by saying that the government should step into help fund the estimated US$5 billion cost of implementing them.

"While we recognise that this is a matter of national security, the Government should also help us in balancing out the costs involved in implementing it. We have suggested a number of things, including reducing the USO contribution from 5 per cent at present to 1 per cent, or reducing some of the levies. This will enable us to reinvest the money into upgrading our network," Mr Rajan S. Mathews, Director-General, COAI, told Business Line.

The new regulations also require the network operators to install facilities to monitor their networks for hacking attempts by foreign spy agencies - within 12 months. The operators also face the prospect of fines if they are broken into, which creates a conflict between the requirement to report the attack, and the financial penalty arising from that report.

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