Indian Telecom Policies

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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Evolution of the Telecom Sector Pre-1991

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Telegraph Act 1885

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Creation of DOT1985

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MTNL & VSNL were set up-1986

1991-1994

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Upto 1991

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Cellular Phone Services were opened up to private sector1994 National Telecom Policy-1994

1994 - 2002

2002 -2007

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1997 : TRAI was set up

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Broadband policy 2004

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NTP 1999

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FDI - 74% 2005

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TDSAT-2000

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BSNL formed 2001

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FDI - 49 %

Upto 1994

Upto 2002

Upto 2007

Regulatory Framework

•Fixing tariffs •Formulating the developmental policies •Sets Guidelines •Granting licenses •Protecting •Private Investment in consumers the Sector •Setting service targets 5

•Licensor and a Licensee •Two or more service providers •A service provider and a group of 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 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

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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 Teleinfo Centers having multi-media capability

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●Protect Defence and Security interest of the 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 12

continued attraction of investment in the sector and allowing creation of Telecommunications infrastructure

Operators of NTP, 1999  Cellular Mobile Service Providers, Fixed Service     

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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

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 15

Impact on the Indian Economy

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Growth Rate of Telephone Subscribers

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*12 month from Feb07 to Jan 08

Figures in 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

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FDI Inflow in India (Figures In Crores)

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