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    Telecom

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    avichaljain12
    The telecom industry in India has grown rapidly to become the third largest network in the world, with nearly 200 million telephone lines and a 45% growth rate, the highest in the world. The industry began with government monopolies but has since been liberalized, allowing private companies to enter, leading to improved quality, lower prices, and rapid expansion of both fixed and cellular services. However, challenges remain around infrastructure gaps, limited spectrum availability, and a slow reform pace.

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    Telecom

    Uploaded by

    avichaljain12
    96 views2 pages
    The telecom industry in India has grown rapidly to become the third largest network in the world, with nearly 200 million telephone lines and a 45% growth rate, the highest in the world. The industry began with government monopolies but has since been liberalized, allowing private companies to enter, leading to improved quality, lower prices, and rapid expansion of both fixed and cellular services. However, challenges remain around infrastructure gaps, limited spectrum availability, and a slow reform pace.

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    The telecom industry in India has grown rapidly to become the third largest network in the world, with nearly 200 million telephone lines and a 45% growth rate, the highest in the world. The industry began with government monopolies but has since been liberalized, allowing private companies to enter, leading to improved quality, lower prices, and rapid expansion of both fixed and cellular services. However, challenges remain around infrastructure gaps, limited spectrum availability, and a slow reform pace.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    96 views2 pages

    Telecom

    Uploaded by

    avichaljain12
    The telecom industry in India has grown rapidly to become the third largest network in the world, with nearly 200 million telephone lines and a 45% growth rate, the highest in the world. The industry began with government monopolies but has since been liberalized, allowing private companies to enter, leading to improved quality, lower prices, and rapid expansion of both fixed and cellular services. However, challenges remain around infrastructure gaps, limited spectrum availability, and a slow reform pace.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Telecom Industry in India

    The telecom industry is one of the fastest growing industries in India. India has nearly 200
    million telephone lines making it the third largest network in the world after China and USA.
    With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.

    History of Indian Telecommunications started in 1851 when the first operational land lines were
    laid by the government near Calcutta (seat of British power). Telephone services were introduced
    in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio
    Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign
    telecommunication companies were nationalized to form the Posts, Telephone and Telegraph
    (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was
    considered as a strategic service and the government considered it best to bring under state's
    control.

    The first wind of reforms in telecommunications sector began to flow in 1980s when the private
    sector was allowed in telecommunications equipment manufacturing. In 1985, Department of
    Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-
    distance service that would be its own regulator (separate from the postal system). In 1986, two
    wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL)
    for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for
    service in metropolitan areas.

    In 1990s, telecommunications sector


    benefited from the general opening up
    of the economy. Also, 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. National Telecom
    Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian
    telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created.
    TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New
    National Telecom Policy was adopted in 1999 and cellular services were also launched in the
    same year.

    Telecommunication sector in India can be divided into two segments: Fixed Service Provider
    (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic
    long distance and international long distance services. The state operators (BSNL and MTNL),
    account for almost 90 per cent of revenues from basic services. Private sector services are
    presently available in selective urban areas, and collectively account for less than 5 per cent of
    subscriptions. However, private services focus on the business/corporate sector, and offer
    reliable, high- end services, such as leased lines, ISDN, closed user group and
    videoconferencing.

    Cellular services can be further divided into two categories: Global System for Mobile
    Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is
    dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is dominated by
    Reliance and Tata Indicom. Opening up of international and domestic long distance telephony
    services are the major growth drivers for cellular industry. Cellular operators get substantial
    revenue from these services, and compensate them for reduction in tariffs on airtime, which
    along with rental was the main source of revenue. The reduction in tariffs for airtime, national
    long distance, international long distance, and handset prices has driven demand.

    The telecom sector is also afflicted by a number of restraints. These include:

     Sluggish pace of reform process.


     Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make
    inroads into this market segment as service providers have to incur a huge initial fixed
    cost.
     Limited spectrum availability.

    But notwithstanding these constraints, telecom sector has undergone a revolution in the past
    decade and has played a major part in bridging the rural-urban divide.

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