The series of controversies associated with the 2G spectrum scam is all the news that is seen, heard or read these days. The media outrage and analysts’ comments go to show that all is not well with the politics-business nexus.

Naturally, the telecom sector is hugely impacted, not so much in terms of growth but in terms of losing face. The continuing duel between the two technology camps is only vitiating the already uncertain regulatory environment of the telecom industry. “The need is for growth in the sector, not politics. There is a need to move on,” said the new minister for communications and IT Kapil Sibal, in his first public interaction after joining office at the India Telecom 2010 event.

Recently, a few operators tentatively launched 3G services. But the enthusiasm is clearly tempered. Operators feel that there is a need for a constant reflection on policies, which have to be in sync with market dynamics. The policy framework too should be drafted after comprehensive consultations with the stakeholders so as to ensure greater transparency.

Take, for instance, the government’s thrust on broadband penetration. Despite being a key area of focus for many years now, the country’s broadband subscriber base is way below target, at 9.9 million against the national goal of 20 million users by 2010.

Therefore, the next set of government policies and regulations should be focused on enhancing broadband uptake. That initiative has already been kicked off by TRAI, which recently launched the National Broadband Plan. Through the new plan, TRAI aims for 75 million broadband connections by 2012 and 160 million by 2014. To achieve this target, it has suggested that a National Optical Fibre Authority (NOFA) and a State Optical Fibre Authority (SOFA) be set up. These will jointly drive the rollout of the proposed $13.34 billion national broadband network, covering 63 large cities and 4,315 cities/towns, and totalling more than 25 million route km of fibre.

Once broadband picks up, it will have an all-pervasive impact on sectors such as education, health, banking, governance and employment across the country.