Introduction
Socio economic development for a nation
3rd largest in the world and growing at the speed of 45% during the year . The evolution of telecom industry can be classified into 3 groups:
Phase 1: Pre Liberalization Era (1980-89) Phase 2: Post Liberalization Era (1990-99)
Phase 1
Phase 2 Early 90s New telecom policy 1994. The manufacturing of equipments pertaining to telecom sector was decentralized and several value added service were introduced. TRAI- was established as an regulatory body.
Phase 3
Started in 80s Mission of better communication Private manufacture entered VSNL and MTNL
New Telecom Policy 1999. The TRAI was endowed with more power. NLD with free entrance. Introduction of ILD.
Impact:
Rates of NLD were cut down by 60%. Price of handset and equipment reduced. Charges on calls were reduced by 8 times.
Economic and Business Polices 3
IMPORTANT OBJECTIVES
attractive FDI and stimulating domestic investment.
Telephone should be available on demand by 1997. All villages should be covered by 1997. In the urban areas a PCO should be provided for every 500 persons by 1997.
Electronic Mail Voice Mail Data Services Audio Text Services Video Text Services Video Conferencing
Changes in Policy
Pilot Projects:
New Technology, New System Encouraged directly by government Basic and value added service
The mission of Telecom Regulatory Authority of India (TRAI) is to ensure that the interests of consumers are protected and at the same time to nurture conditions for growth of telecommunications, broadcasting and cable services in a manner and at a pace which will enable India to play a leading role in the emerging global information society.
The government gradually allowed the entry of the private sectors into telecom equipment manufacturing
District Level
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The applicant company will have to pay one-time non-refundable entry fee before signing the license agreement.
The entry fee for different types of unified licence shall be as follows. Rs. 20 crore for national level Rs. 2 crore for each Metro and A category. Rs. 1 crore for each B category. Rs. 50 lakh for each C category service areas levels. Rs. 15 lakh for each district level License shall be issued on non exclusive basis, without any restriction on the number of entrants in a license area. Thus, there will be no restriction on the number of players in a service area The current practice
There are two types of licence in the communication sector. They are: 1. Unified Access Service Licence (UASL), 2. The Standalone Licenses issued by the Department Economic and Business Polices 10 Telecommunications (DoT) for specific service
Those objectives which were not fulfilled in NTP 1994 were fulfilled by introducing NTP 1999 Targets
Achieve telecom coverage of all villages in the country by the year 2002
Changes in Policy
Opened for private participation Licenses period would be 20 years and extendable by 10 years
Foreign equity not exceed 74% promoter should have combine net worth of Rs 25 million.
Pay one time entry fee of Rs 25 million + financial bank guarantee of Rs 200 million
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Government has announced broadband policy in October, 2004. The main emphasis is on the creation of infrastructure through various technologies that can contribute to the growth of broadband services. It was estimated that the number of broadband subscribers would be 20 million by 2010 and providing Broadband connectivity to all secondary and higher secondary schools, public health institutions and Panchayat by 2010.
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India is one of the most-attractive telecom markets because it is still one of the lowest penetrated markets The telecom industry in India has experienced exponential growth over the past few years and has been an important contributor to economic growth
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THANKYOU
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