Telecommunication (Support Functions)

The telecom services have been recognized the world-over as an important tool for socio-economic development for a nation. It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy.

Indian telecommunication sector has undergone a major process of transformation through significant policy reforms, particularly beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future also.

Telecommunication sector in India is primarily subdivided into two segments, which are Fixed Service Provider (FSPs) and Cellular Services.

The Indian Telecommunications network (Fixed and Cellular) with more than 951.34 million connections is the second largest in the world. The sector is growing at a rapid speed. This rapid growth is possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sectors.

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 fixation/revision of tariffs for telecom services which were earlier vested in the Central Government.

An attractive trade and investment policy and lucrative incentives for foreign collaborations have made India one of the world's most attractive markets for the telecom equipment suppliers and service providers. 100% Foreign Direct Investment (FDI) is allowed through automatic route for manufacturing of telecom equipment.

Indian Telecom Authorities

• Ministry of Communications and Information Technology
• TRAI - Regulatory
• DoT - Licensing
• WPC - Spectrum Allocation & Management
• Telecom Commission - Policy Making
• TEC - Technical body for equipment approvals

The Total Revenue of Indian Telecom Services company is likely to exceed Rs.200000 Cr ( US$ 44 Bn approx) for FY 11–12.Total Telecom Subscriber as on March 2012 is 951.34 Million (Fixed Lines 32.17 million and Mobile Phones 919.17 Million)