India's Telecom Reform - Indian Institute of Public Administration

More documents

Recommendations

Info

India’s Telecom Reform: A Chronological Account Meeting a long pending demand for spectrum by cellular operators, WPC issued an order in February 2002 to allocate additional spectrum to cellular operators. Rules proposed for the additional allocation of spectrum included: • Allocation of additional spectrum of 1.8 MHz per operator in the 1800 MHz band, taking the total allocated spectrum up to 2x8 MHz per operator; • Cellular operators may apply for additional spectrum on reaching a subscriber base of four lakhs in the service area, but frequency will be allocated after the subscriber base has crossed five lakhs. • Further additions to the spectrum are possible up to 2x10 MHz per operator after reaching such subscriber base as may be prescribed. Spectrum Usage Charges Up to 2x4.4 MHz - 2% of Adjusted Gross Revenues (AGR) Up to 2x6.2 MHz - 3% of AGR Up to 2x10 Mhz - 4% of AGR TRAI, which is indirectly involved with spectrum management, but has been involved in the controversy relating to license fees paid for mobile services, has raised the important issue of the efficient use of spectrum. In late 2003, TRAI castigated mobile operators for using the spectrum inefficiently. In the coming days, spectrum pricing is likely to become an even more important consideration for mobile operators and as a consequence for the growing numbers of users of their services. 14
A Theoretical Model of Subcontracting for High Quality 3 Conclusion The absence of a well thought-out initial plan and strategy comes through clearly as the main reason for much of the problems that arose in India’s telecom reforms. This in turn was linked to confusion with regard to three distinct objectives - promoting new investment, efficiency through competition and fiscal concerns - which influenced decision-making at various stages of the process. The relationship between the DoT and the regulatory agency introduced through reforms was another area of weakness that contributed to uncertainties and delays. It is noteworthy that clarity on the basic issues was eventually brought about only through the recommendations of task forces and groups (reporting to the Prime Minister) culminating in NTP-99. But further problems cropped up on account of the entry of new wireless-based technologies, in particular, the way this entry was handled. This led to disputes and eventually to renegotiations of the terms of licenses already awarded for fixed line and mobile services, a process that again turned out to be messy. As a partial fall-out, moves towards consolidation through mergers and acquisitions have also come about. These developments notwithstanding, the process of reduction in tariffs was initiated by the regulator and was soon taken over by the forces of competition. This commenced in the period covered in the report but only gained greater momentum subsequently. Inflows of investments into the sector (including volumes of FDI) and resurgent economic growth have combined with the fall in tariffs to generate an accelerating increase in subscriber numbers. The recent trends (December 2005/ January 2006) would take the country to the first place in telecom sector growth, worldwide. In spite of the many setbacks to the process and the obvious challenge of connecting the remaining largely rural population, the success of the telecom reform exercise is spectacular in many respects. It is most visible in the abundance of services, the absence of long waiting times and a vastly cheaper and improved service with operators vying for consumer business, a contrast from the old days of corrupt monopolies. Perhaps the most important and visible sign of this success is the growing number of urban poor using mobile phones to enhance their livelihoods, besides communicating with loved ones. So much more could have been achieved, but what has been achieved is extraordinary in comparison to the reform initiatives in other sectors in India. 15
Page 2 and 3: India’s s Telecom Reform: m: A Ch
Page 4 and 5: Table of Contents 1 2 3 4 5 Introdu
Page 7 and 8: India’s s Telecom Reform: m: A Ch
Page 9 and 10: Introduction The policy document se
Page 11 and 12: Introduction In 1998, there was bit
Page 13 and 14: 2 Key Regulatory y Issues Convergen
Page 15 and 16: Key Regulatory Issues who had much
Page 17 and 18: Key Regulatory Issues access teleph
Page 19: Key Regulatory Issues sultation pap
Page 23 and 24: Epilogue (a) filling the gap betwee
Page 25 and 26: Appendix I Chronology of Indian Tel
Page 27 and 28: Chronology of Indian Telecom Reform
Page 33 and 34: Information Communication Technolog
Page 35 and 36: Information Communication Technolog
Page 37 and 38: Select Telecom Statistics Select Te
Page 39 and 40: Select Telecom Statistics Table 2.
Page 41 and 42: References Asian Development Bank (

India's Telecom Reform - Indian Institute of Public Administration

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?