Telecom Policy

& its Impact on India

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 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.”

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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

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 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

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 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

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 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

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 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

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 New Telecom
Policy,1999

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 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

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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
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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

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 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

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 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
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 Impact on the Indian
Economy

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 Growth Rate of Telephone
Subscribers

17 *12 month from Figures in

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

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 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

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 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
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 THANK YOU

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 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

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Subscriber linked Spectrum
allocation norms

Back
 FDI Inflow in India
(Figures In
Crores)

Back
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 Back
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