The Indian Telecom Sector

India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian telecom network is the eighth largest in the world and the second largest among emerging economies. At current levels, telecom intensiveness of Indian economy measured as the ratio of telecom revenues to GDP is 2.1 percent as compared with over 2.8 percent in developed economies (CRISIL, www.ibef.com).

Indian telecom sector has undergone a major process of transformation through significant policy reforms. The reforms began in 1980s with telecom equipment manufacturing being opened for private sector and were later followed by National Telecom Policy (NTP) in 1994 and NTP'1999.

Historically, the telecom network in India was owned and managed by the Government considering it to be a natural monopoly and strategic service, best under state's control. However, in 1990's, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector.

Policy reforms can be broadly classified in three distinct phases

• " The Decade of 1980's saw private sector being allowed in telecommunications equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed and a Telecom Commission was set up to give focus to telecommunications policy formation.
• " In 1990s, telecommunications sector also benefited from the general opening up of the economy. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector.
  • Availability of telephones on demand (targeted by 1997)
  • Universal service covering all villages and one PCO per 500 persons in urban areas at the earliest (targeted to be achieved by 1997)
  • Telecom services at affordable and reasonable prices
  • World standard quality of services
• " NTP 1999 brought in the third generations of reforms in the Indian telecommunications sector.

The Indian Telecom Sector:

1. Telecommunication Services
   1. Basic service
   2. Cellular service
   3. Internet Service Provider (ISP)
2. Telecommunication Equipment
3. Issues
   1. Rural Telecommunications
   2. Interconnection
   3. Spectrum Allocation
   4. ICT and Gender