The Telecom Network and Telecom Services

The government includes telecom as a part of Technology Missions – a
set of dedicated, welfare – oriented and well focused programmes being
implemented at the national level.
The Indian network was 15th largest in size, and ad exhibited an average
growth rate of 8 % since independence.
 Telecom Services
Basic Services: Telephone or basic voice service constituted more than
80 % of the telecom network by investment & revenue.
The telephone density in March 1997 was roughly 1.6 per 100
populations.
Opening up the Sector
Key driver for the change in the Telecom Sector – The national Telecom
Policy – May 1994
Categories of Telecom Services
Domestic Basic Basic Telephone
Telex
Fax
Domestic Value Added
Services (VAS)
Paging
Cellular
VSAT
Data Services
International basic &
VAS
 Licenses – for an Initial Period – 15 Years
- Extension period – 10 Years
Permissible network technologies were specified & basic service providers
were required to base their services on fiber optic cable and wireless in
the local loop as far as possible.
Private sector operators were allowed to provide intra circle long distance
service, which contributed to almost 60 % of the total costs.
The government had mandated that all private basic service operators
had to provide 10 % of all new lines in rural areas. A weight age of 15 %
for service provision in rural areas was given at the time of bid selection.
Inter-circle communication remained under the DoT. VSNL maintained an
exclusive license for international services for at least until 2004.
Advanced communication services like cellular, paging, Email, fax, data
transmission over telephone and leased circuits were increasingly being
made available by private operators.