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Abstract
The Indian telecom industry, the world's fastest growing industry with 851.70 million mobile phone subscribers as of June 2011, is the second largest telecommunication network in the world in terms of number of wireless connections after China. It is projected that India will have 1.159 billion mobile subscribers by 2013. Global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2013. The industry is expected to reach a size of 344,921 crores (US$76.92 billion) by 2012 at a growth rate of over 26 percent, and generate employment opportunities for about 10 million people during the same period. The paper delineates the eclipse of the public sector with the advent of the private sector.
Key words:
Privatization, Telecom, FDI, GDP, Subscribers, BSNL.
A large population, low telephony penetration levels, and a rise in consumer spending power have helped India to become the fastest-growing telecom market in the world. The market's first operator was the state-owned Bharat Sanchar Nigam Limited (BSNL), created by corporatization of the Indian Telecommunication Service, a government unit formerly responsible for provision of telephone services. Subsequently, after the telecommunication policies were revised to allow private operators, companies such as Bharti Airtel, Reliance Communications, Tata Teleservices, Idea Cellular, Aircel and Loop Mobile have entered the market (Bharti Airtel currently being the market leader in India).
The total number of telephones in the country stands at 885.99 million, while the overall tele-density has increased to 73.97 percent as of June 30, 2011. Mobile telephony experiences growths at rates such as adding up 12-14 millions of customers every month.
History of Indian Telecom
The history of Indian telecom can be traced from 1851. The Indian telecom service is segmented into two distinct marketsthe wire line and wireless services. Some of the important milestones in the communication industry in India are:
Role of TRAI
The entry of private service providers brought with it the inevitable need for independent regulation. The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including revision of tariffs for telecom services which were earlier...