Telecom Sector In India

PREPARED BY
PROFESSIONAL TEAM & ADVOCATES OF
MARS & Partners
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International Legal Consultants,                                                                                
Advocates & IPR Attorneys                                                                                                     

Introduction

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 Introduction
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Telec ommunications
services are a global
Telec ommunications
market worth
services over US$ 1.5
are a global
trillion in
market revenue
worth over US$ 1.5
trillion in revenue

Wit
Wit
h
ha a
gro
gro
wt
wt
h
h
rat
rat
ee ofof
45
45
%,
%,
Ind
Ind
ian
ian
tele
tele
co
co
m
m
ind
ind
ust
ust
ry
ry
has
has
the
the
hig
hig
hes
hes
tt
gro
gro
wt
wt
h
h
rat
rat
ee in
in
the
the
wo
wo
rld
rld

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 Historical Background
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Section 2 (1)k TRAI Act
 service of any description (including electronic mail, voice mail, data services, audio text
services, video text services, radio paging and cellular mobile telephone services) which is
made available to users by means of any transmission or reception of signs, signals, writing,
images and sounds or intelligence of any nature, by wire, radio, visual or other electro-
magnetic means

Pre- New Mobile

Steady
indepen Till 1990 Econom revoluti
Growth
dence ic Policy on

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 II
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Legal and Regulatory

Framework

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 Telecommunication Laws
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Indian Telegraph Act, Indian Wireless Act,

1885 1933
• Power to the Central Government •Main objective to regulate the
regarding establishing, maintaining possession of wireless apparatus
and working telegraphs
•Supplementary to the Telegraph Act
•Granting of license
•Prohibits any person from
•Special power in public interest possessing wireless telegraphy
apparatus except under and in
•2004 Amendment: Universal accordance with a license issued
Service Obligation under this Act

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Reserved
 Telecommunication Laws
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Telecom Regulatory Authority of India Act, 1997

Telecom Regulatory Telecom Disputes Settlement

Authority of India & Appellate Tribunal

• Primary regulatory entity • Amendment in 2000

• Composition: 1 Chairman, 2 whole • To adjudicate disputes and dispose of

time members, 2 part time members appeals

• Functions • Between a between a licensor and a

Recommendation to government licensee; between two or more service
Enforce compliance
Investigation and issuing directions providers between a service provider
and a group of consumers.

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 Governmental Policies
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National Telecom Policies

 1994 and 1999
 Broad policy guidelines
 Aims: over all development

Unified Access Licensing

 Unification and streamlining of licensing system

Broadband Policy, 2004

Cable and Broadcasting Services

 Considered under telecom services since 2004
 Conditional Access System

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 III
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Present Scenario

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Reserved
 Mergers and Acquisitions
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Significant driver of M & A
Activity in India
$5.7 billion and $11 billion
in 2008 and 2007
Reasons
 Improving market access
 Spectrum Scarcity
 Recurring costs on
technology
DoT Guidelines on
Merger
•Intra-circle Consolidation
•Merger for specific categories of
licenses
•At least 3 service provider after the
merger
•Consolidation leading to market
monopoly prohibited
•Approval of DoT must
•Spectrum Restrictions
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 Foreign Investment
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Attractive avenue for DoT Guidelines on

foreign investment since Foreign Participation
1990.
• Amendment in the existing licenses
20.7% growth, revenues
• Maximum foreign participation
of Rs.1, 57,542 crore in limit- 74%
2008-09.
• Disclosure of status of foreign
Reasons
holding and certification that he
 Fastest growing sector maximum limit is adhered on six-
monthly basis.
 Recurring costs on
technology

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 Foreign Investment: FDI Policy
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Basic Framework
 Maximum limit- 74 % (including indirect investment)
 49% automatic route
 Licensing requirements

Security Requirements
 Some officers and majority of directors to be Indians
 Restriction on transfer of information outside India
 Secured transmission

100 % FDI in E-commerce activities

 Including OSP like BPO, Call centers, tele-marketing etc.

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 Other Emerging Areas
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Infrastructure Sharing
 enhancing the spread of network coverage in a geographically
vast country as India
 helps in reducing the risk factors for the telecom companies
 DoT Guidelines
 sharing will be limited to antenna, feeder cable, node B, and radio
access network and transmission system only
 do not permit the sharing of spectrum among the service providers

Emerging Technologies
 Advent of 3G Technology in India

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 Legal Services for Telecom Sector
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LEGAL advice pertaining to the licensing and regulatory requirements

concerning the various telecommunication services.

LEGAL assistance in drafting and approval of license agreements for different

telecom services.

HANDLING matters concerning foreign investments in telecom sectors and

compliance to the statutory requirements.

SERVICES regarding the corporate restructuring and consolidation procedures

and requirements in telecom sectors particularly guiding on merger of licenses.

DISPUTE resolution regarding telecommunications services before TDSAT.

ADVISING on the changes and modifications in the existing telecom regime and
emerging issues like infrastructure sharing, new telecom technologies.
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 Reach Us
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MARS & Partners

International Legal Consultants,                             
Advocates and IPR Attorney                                             
A-415, Defence Colony, New Delhi-110 024, INDIA 
Tel.: + 91-11- 4652 5466 / 77 / 88, Fax: + 91-11- 4652 5455
Email: info@marsandpartners.com
Website: www.marsandpartners.com

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