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Indian Telecom Policies

The document discusses the evolution of India's telecom policy and its impact on the economy. It outlines the major phases of development from pre-1991 to 2007, focusing on the National Telecom Policies of 1994 and 1999. The policies aimed to increase tele-density, introduce private investment, and transform the sector into a competitive market. As a result, telephone and internet subscribers grew rapidly. However, spectrum availability became an issue as the sector's success increased demand. Overall, telecom has contributed significantly to India's GDP, growing from 1.5% in 1999 to 3% in 2007.

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Aditya Avasare
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358 views29 pages

Indian Telecom Policies

The document discusses the evolution of India's telecom policy and its impact on the economy. It outlines the major phases of development from pre-1991 to 2007, focusing on the National Telecom Policies of 1994 and 1999. The policies aimed to increase tele-density, introduce private investment, and transform the sector into a competitive market. As a result, telephone and internet subscribers grew rapidly. However, spectrum availability became an issue as the sector's success increased demand. Overall, telecom has contributed significantly to India's GDP, growing from 1.5% in 1999 to 3% in 2007.

Uploaded by

Aditya Avasare
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 29

Telecom Policy

& its Impact on India

1
What is Telecommunication?

“Telecommunication refers to all types


of data transmission, from voice to
video and is a general term for a vast
array of technologies that send
information over distances.”

2
3
Evolution of the Telecom Sector
Pre-1991 1991-1994 1994 - 2002 2002 -2007

n Telegraph Act 1885 n Cellular Phone n 1997 : TRAI was set n Broadband policy
Services were opened up 2004
n Creation of DOT- up to private sector-
1994 n NTP 1999 n FDI - 74% 2005
1985
n National Telecom n TDSAT-2000
n MTNL & VSNL were Policy-1994
set up-1986
n BSNL formed 2001

n FDI - 49 %

Upto Upto Upto Upto


1991 1994 2002 2007

4
Regulatory Framework

•Formulating the •Fixing tariffs •Licensor and a


developmental policies Licensee
•Sets Guidelines
•Granting licenses •Two or more
•Protecting service
•Private Investment in consumers providers
the Sector
•Setting service •A service
targets provider and a
group of
5 consumers
National Telecom
Policy, 1994

6
Objectives of NTP,1994

Availability of telephone on demand

Provision of world class services at


reasonable prices

Ensuring India’s emergence as major


manufacturing & export base of telecom
equipment

7
Objectives of NTP,1994
Universal availability of basic telecom
services to all villages

Involvement of the private sector to bridge


the resource gap

Private sector participation for value added


services

8
Need for Reforms
Some targets of the NTP,1994 were not
fulfilled

Developments in the telecom, IT, consumer


electronics and media industries world-wide

Convergence of telephone and broadcasting


markets and technologies

9
New Telecom
Policy,1999

10
Objectives of NTP,1999
●Availability of affordable and effective
communications for all the citizens and increase the
tele density

●Creation of a modern, efficient and world class


Telecommunications infrastructure

●Convert Public Call Offices (PCO’s) into Public Tele-


info Centers having multi-media capability

●Protect Defence and Security interest of the


11
country
Objectives of NTP,1999
Transform in a time-bound manner, to achieve greater
competitive environment providing equal opportunities

Strengthen Research and Development efforts in the


country

Enable Indian Telecom Companies to become truly


Global Players

Enabling continued attraction of investment in the


sector and allowing creation of Telecommunications
12
infrastructure
Operators of NTP, 1999

 Cellular Mobile Service Providers, Fixed Service


Providers & Cable Service Providers
 Radio Paging Service Providers
 Public Mobile Radio Trunking Service Providers
 National & International Long Distance Operators
 Global Mobile Personal Communication Providers
 VSAT Based Service Providers & Other Service
Providers

13
Basic Frame Work
Access Providers

 Provide mobile telephony services within their service


area without seeking an additional licence

 Direct interconnectivity between licensed operators in


their area of operation and also allowed to share
infrastructure

 The operators shall be free to provide, in its service area


of operation, all types of mobile services including voice
and non-voice messages & data services

14
Basic Frame Work
 Operators would be granted separate licence, for
each service area

 Licences would be awarded for an initial period of


twenty years and would be extendible by additional
periods of ten years thereafter.

 Operators would be required to pay a one time entry


fee

 Apart from the one time entry fee, Operators would


also be required to pay licence fee based on a
revenue share
15
Impact on the Indian
Economy

16
Growth Rate of Telephone
Subscribers

17 *12 month from Figures in


Feb07 to Jan 08 millions. Source:TOI
18
Growth in Internet
Subscribers

19
Current Scenario

• Roaming tariffs reduced by 56%

• Telecom Sector contributed 1.5 % to the GDP in


1999 and
 3 % in 2007

• NDNP (National do not Call )


THE WAR FOR
SPECTRUM
The Spectrum Issue

• Less availability of spectrum

• TRAI v/s DoT


- More transparency
- Subscriber linked spectrum allocation norms

• GSM v/s TRAI


- Subscriber linked spectrum allocation norms

• GSM v/s CDMA


- Dual Technology
Future

23
Recommendations
 Build the National Infrastructure

 Make Metro cities Wi-Fi enabled

 Migration from separate license regime to


composite license regime

 Establish a regulatory framework for carriage


and content of telecommunication

 Establish a single regulatory and licensing


authority
24
THANK YOU

25
Sources & Reference
History of Telecom Sector
 www.mbaindia.com
Regulatory Framework
 www.trai.gov.in
 www.dot.gov.in
Impact
 CMIE Journal, Economic & Political Weekly, DNA
Money (13th Feb, 2008)
Spectrum
www.econimictimes.com, www.business standard.com (30th
Nov,2007, 7th Jan 2008, 16th Jan,2008)
Miscellaneous data
 www.indianembassy.org

26
Subscriber linked Spectrum
allocation norms

Back
FDI Inflow in India
(Figures In
Crores)

Back
28
Back
29

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