India’s <strong>Telecom</strong> <strong>Reform</strong>: A Chronological Account the end <strong>of</strong> December 2005, the total subscriber base had grown to 124.85 million, made up <strong>of</strong> 48.93 million fixed lines (including fixed WLL phones) and 75.91 million mobile connections. Average penetration touched 11.43 per hundred, with urban tele-density <strong>of</strong> 23 percent and rural penetration <strong>of</strong> two percent. 18
Appendix I Chronology <strong>of</strong> <strong>Indian</strong> <strong>Telecom</strong> <strong>Reform</strong> 1990, December: A high level committee headed by Dr. M. B. Athreya was set up to recommend the most appropriate organisational structure for the management <strong>of</strong> telecom services in the country. The committee recommended that the DoT be split into four corporate entities, value added services should be thrown open to competition by public or private enterprises, co-operatives etc. Small entrepreneurs must be encouraged in installation, cabling, closed user networks and subscriber premises work, for greater efficiency and employment generation. Importantly, policy and regulation should be separated from operations. 1991-1993: The beginnings <strong>of</strong> private sector participation in telecom services. The sub-sector <strong>of</strong> ‘value added services’ was opened up to private investment in July 1992. These included: Cellular Mobile Radio Telephone Radio Paging Electronic Mail etc. services 1992, January 20: DoT invites technical bids for cellular mobile telephone services in Delhi, Mumbai, Calcutta and Madras. 1992, July: Value added services opened to private investment by DoT. These include e-mail, voice mail, 64 Kpbs private data services, audio text and video text services, radio trunking services, cellular mobile services, radio paging services, and video-conferencing. 1992, October 12: The Minister <strong>of</strong> <strong>Telecom</strong>munications announces the list <strong>of</strong> metro cellular licensees. The metro cellular operators - Bharti, Essar, Hutchison Max, BPL, Modi Telstra, Usha Martin, Skycell and RPG win licences for cellular services in metros. 1993, May: As part <strong>of</strong> the ongoing reform process, the Ministry <strong>of</strong> Communications requests ICICI to recommend terms and conditions for the private sector’s entry into India’s telecom services and to study the necessary changes required in the telecom sector and recommend modalities for constituting an independent <strong>Telecom</strong> Regulatory Authority. 1993, October: The G.S.S. Murthy Committee submits its report on the licensing <strong>of</strong> public switched telephone networks. 1994, January: ICICI submits its report on the setting up <strong>of</strong> a <strong>Telecom</strong> Regulatory Body for India. 1994, May 13: National <strong>Telecom</strong> Policy (NTP-94) was announced. 1994, June 13: ICICI <strong>Telecom</strong> Working Group report on entry conditions for basic telecom services suggests the optimal level for entry <strong>of</strong> private players should be a Secondary Switching Area (SSA). 1994, November 10: ICICI <strong>Telecom</strong> Working Group submits final report on the process for the selection <strong>of</strong> new operators for basic services. 1994, November 29: On the basis <strong>of</strong> re-evaluation as per the directions <strong>of</strong> the Supreme Court, on a petition by one <strong>of</strong> the operators, DoT orders a change in the cellular operator for Mumbai. Hutchison Max signs licence for Bombay. 19