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India's Media Minister: "Technology Is Overtaking Us" Information & Broadcasting head Arun Jaitley sees opening up India's tightly held media as a way to keep up Arun Jaitley, India's new Minister for Information & Broadcasting, took office in October as part of the new National Democratic Alliance coalition government, led by the Bharatayia Janat Party. At a time when India's economy is poised for a growth spurt, its equivalent of the Federal Communications Commission is badly in need of a makeover. Jaitley's Ministry operates with regulations passed in 1955, shortly after India gained independence from British rule, and maintains national sovereignty by assiduously discouraging foreign investment in India's print and broadcast media. The Financial Times has been waiting for nearly a decade to buy into India's business press, and even the mighty Rupert Murdoch has had to admit defeat in trying to break into the market. India's media, feisty but badly lacking funds, is the loser. But a new era may dawn under Jaitley, 48, a former lawyer. He's a pragmatist who understands the realities of today's converging technologies -- and the pointlessness of protectionism in the Internet era. He will push for liberalization of rules governing scientific and technical journals as a way to circumvent political opposition to foreign-backed joint-venture publishing. He's also proceeding with plans for a radical overhaul of sluggish state-owned broadcaster Doordarshan. The moves occur as the government plans a complete overhaul of technology and communication policy in the hopes of using new technology to give its economy a boost. Blistering growth in software exports and the booming information-technology sector have eroded much of India's traditional chauvinism and protectionist tendencies in the high-tech fields. But Jaitley and other reformers know they must move while their government is still in its honeymoon period. From his office in New Delhi, Jaitley spoke to Business Week Asia Regional Editor Mark Clifford and India Bureau Chief Manjeet Kripalani in early December about his plans to unshackle India's media. Here are edited excerpts of their conversation: Q: Regarding foreign ownership of India's media, is there any rethinking of the policy? What development should we expect in that area in the coming year? A: There is no specific proposal for rethinking at the moment.... Of late, by some alternative arrangements, some foreign publications have started in India by an editorial franchise arrangement -- journals like Elle, Cosmopolitan, and others. The argument is that most of these journals are already available on the Internet. [But] in India we don't envisage print media owned by foreigners being published here because even the constitutional guarantee of free expression is only to citizens, not to noncitizens. Secondly, how do you allow control of the human mind to [fall into] into foreign hands? Q: Is there a concern that in the age of the Internet and of satellite, India risks shutting off its minds from the world? A: Your argument is precisely the reason given by those who favor the opening up. But...until we achieve political consensus on this issue, we will not be deciding this. Q: Technology has been changing very rapidly in the last five years. Could you describe the government's policy to deal with these changes, particularly given the convergence of technologies? A: We are conscious of these realities.... The Prime Minister [Atal Bihari Vajpayee] has recently announced that under the Finance Minister, a group on telecom would be constituted, and since the convergence issue directly relates to telecom, broadcasting, and so on, more than one department of the government is involved. It is quite likely that this issue in the very near future will be taken up and decided by this group, headed by the Finance Minister [Yashwant Sinha]. Q: Bombay-based Subhash Chandra, founder of Zee TV [India's most popular privately owned TV operator] has a plan to offer long-distance education through cable TV and the Internet. Does he have to get permission for this, or will it come under the Telecom Ministry? A: On certain issues where uplinking is involved, certain permissions would be required. Q: Why is uplinking such an issue? A: So far, the government's policy is that we allow uplinking to companies which have 80% ownership in Indian hands. Q: How do you think policy is going to change to facilitate the growth of the Internet? A: You'll have to speak to the Telecom Ministry.... My [responsibility] is information in relation to broadcasting, not technology. We have some division of labor here. Q: But I thought divisions were becoming obsolete... A: ...and therefore convergence is making the line of distinction very difficult. That is why the entire policy will have to be through interdepartmental group ministers, which the Finance Minister will head. Q: You say in the near future. When do you think we'll have some recommendations and some implementations? A: The Prime Minister announced the decision two weeks ago. I hope it'll not be very long -- not years, but weeks and months. Q: Why this sense of urgency? A: Technology is overtaking us. And we must allow for the people the maximum benefit of the technology changes, particularly in the area of communication and information. Q: Is the fear... A: I would not use the word fear.... Here you have two competing viewpoints. One is [that] the [foreign] print media are already here through the Net. The other is that, no, in areas of media we have not opened out as yet, [and] we don't intend to. Q: Keeping other competitors out will create a monopoly for Zee TV, which will end up as the only player that can afford it. A: In a country where every town has half a dozen or a dozen newspapers, and on a national level you have 40 channels, of which 5 to 10 are current-affairs channels, the real fear is not monopoly. Q: Which side do you come down on? A: I will speak for whatever decision the government eventually takes. Q: We get the feeling while traveling around that perhaps the BJP is the party that will make decisions and will make the big push... A: I think we are here for the next five years, and the next five years in this field are going to be very crucial.... I very strongly feel the arrival of television was delayed in India for 20 years. When my generation was growing up and going to school we had very limited access to television. I don't want the next generation to be deprived of similar benefits of technology. Q: What is being done on the issue of direct-to-home broadcasting? A: The issue is under serious consideration by a group of ministers. The report is likely to be soon. Q: There's been tremendous liberalization in the broadcast and radio area. What's your assessment of that? A: You see, in India radio is more powerful than television. In fact, only 7% of households have a color TV, and 22% have black-and-white televisions -- 71% of households still don't have a television. A lot more have radios.... But in urban areas, amongst opinion makers, radio was losing its importance. I have a feeling that the recent privatization of FM radio is going to be the rebirth of the radio. Q: So you're pretty positive on the privatization of FM radio? A: ...The government [shouldn't] be the sole monopolist in the business of music entertainment. Q: Any lessons for TV there? A: Television will be a two-fold exercise. We'll have the public broadcasting systems, which will be our Doordarshan [India's state-controlled and most popular TV outlet]. Private operators will be allowed to operate both in news and current affairs and various other [areas]. Q: Any consideration given to the privatization of Doordarshan? A: No. The current move is to develop it as a public-service broadcaster. Q: Its current share of advertising revenue, if I remember correctly, is falling... A: It is a matter of very serious concern, though advertising cannot be the only criteria for judging the performance of a public-service broadcaster. But at least there must be an effort to make it self-sufficient. And I constituted a restructuring body [on Nov. 22] to explore its commercial viability. I have given them three months to finish the exercise of restructuring it. Q: What do you think the main outlines of the restructuring will be? A: Doordarshan is overstaffed, it doesn't have a marketing department, its in-house talent is not used, its technology resource is not fully utilized, and it has to find an identity.... Is it to be merely an entertainer like the private channels, or is [its role to provide] information, education, and entertainment? Q: What are your other main priorities and concerns? A: I think if I can put the broadcasting law in shape, and if I can determine the course of a public-service broadcaster, there's very little left for me to do. Q: Does the ministry have a long-term future given the convergence [of technologies] and the rethinking of government policy? A: Well, if the systems are put in shape, then there's very little the ministry has to do. And that's how it should be. If I succeed in doing this, I'll probably be working myself out of a job. EDITED BY THANE PETERSON _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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