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 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
[Link]
Regulatory Framework
[Link]
[Link]
Impact
CMIE Journal, Economic & Political Weekly, DNA
Money (13th Feb, 2008)
Spectrum
[Link], [Link] [Link] (30th
Nov,2007, 7th Jan 2008, 16th Jan,2008)
Miscellaneous data
[Link]
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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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