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More than 165 years old.


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 3: Post 2000 Era

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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.


Rates of NLD were cut down by 60%. Price of handset and equipment reduced. Charges on calls were reduced by 8 times.
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National Telecom Policy 1994

Telecom Regulatory Authority of India

New Telecom Policy 1999

Broadband Policy 2004

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attractive FDI and stimulating domestic investment.

improving Indias competitiveness in global market

availability of telephone on demand

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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

Permitted to operate under the licenses of non exclusive basis

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Changes in Policy
Pilot Projects:
New Technology, New System Encouraged directly by government Basic and value added service

Technology and Strategic Aspects:

Telecommunication is a vital infrastructure. Thus the administration of the policy in the telecom sector is such that the inflow of technology is made easy and so it is necessary to encourage indigenous technology, so that the Indian Technology can meet the national demand and also compete globally.

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TRAI was established in 1997 by an act of parliament to regulate telecom 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

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Recent reforms in TRAI 2012

The Telecom Regulatory Authority of India (TRAI) recently released the Draft Guidelines for the New Unified Telecom Licensing Regime. There will be only three types of telecom license in future. Types of telecom
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license At national level

Service Area Level

District Level

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

New Telecom Policy 1999

NTP-99 laid down a clear roadmap for future reforms, contemplating the opening up of all the segments of the telecom sector for private sector participation.

Need for a new telecom policy

Those objectives which were not fulfilled in NTP 1994 were fulfilled by introducing NTP 1999 Targets

Provide Internet access to all district head

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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

Private operate allowed to set up landing facilities that access cables

National Long Distance

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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

International Long Distance

Open competition in this sector was allowed with effect from April 2002 itself.

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Broadband Policy 2004

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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Role of FDI in Indias Development

FDI upto 74% is permitted for the following: Radio Paging Service Internet Service Providers (ISP's) FDI upto 100% permitted in respect of the following telecom services: Infrastructure Providers providing dark fiber (IP Category I), Electronic Mail, Voice Mail. In telecom manufacturing sector 100% FDI is permitted under automatic route.
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Targets Set By the Government

1. Network expansion 800 million connections by the year 2012. 2. Rural telephony 200 million rural subscribers by 2012. 3. Broadband Broadband coverage for all secondary & higher secondary schools and public health care centres by the end of year 2010. Broadband coverage for all Grampanchayats by the year 2010 Broadband on demand is every village by 2012
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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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