Telecommunication Infrastructure of India

Investing in telecommunication infrastructure does itself lead to growth
because of its products – cable, switches, etc. lead to increase in the
demand for the goods & services used in their production.
The economic returns to telecommunication infrastructure investment are
much greater than the returns just on the telecommunication investment
itself.
A country’s telecommunication infrastructure has strong effects on
economic growth.
The telephone does have an impact on a nation’s economy, through the
improvement of the capabilities of managers to communicate with each
other rapidly over increased distances.
 Indian telecom Sector : Past & Present
Telecom sector was a state monopoly until the mid eighties when the
liberalization process started. The Department of Telecommunications
(DoT), under the Ministry of Communications, administered telecom
services.
Planning, engineering, installation, maintenance, management &
operations of telecom services for the whole of India was managed by the
DoT.
C – DoT – Centre for Development of Telematics – 1984
 Initiating & managing research in the switching & transmission
segment
Government Separated the Department of Post & Telegraph in 1985
 The Department of Posts
 The Department of Telecommunication
1986 – Two New Public Sector Corporations – Under DoT
 MTNL – Mahanagar Telephone Nigam Limited
Operations, maintenance & development of telecom services in
Mumbai & New Delhi
 VSNL – Videsh Sanchar Nigam Limited
Plan, operate, develop & accelerate international telecom services
1989 – Telecom Commission
 Execution, Administration & Financial Powers to formulate & regulate
policy and prepare the budget for DoT.
Four (4) fulltime members …. Four (4) part time members ….
Managing Technology Planning & Commission
Managing Production Department of Finance
Managing Services Department of Industry
Managing Finance Department of Electronics
Telecom Consultants India Ltd – had provided Consultancy & Turnkey
Project Management Services in India & other developing countries
The largest manufacturer of telecom equipment – Indian Telephone
Industries (ITI)
1885 – The Indian Telegraph Act
1933 – The Wireless Telegraph Act
1997 – The Telecom Regulatory Authority of India (TRAI)
1991 – Three high powered Athreya committee
Athreya Committee’s Report’ Recommendations
 Policy & Regulatory mechanism to be placed under Telecom
Commission
 Breaking up of the DoT into zonal corporations under the government
 Setting up a corporation, initially in the public sector, to handle the long
distance network
 Value added services to be provided by the private sector
 General liberalization in production of equipment
Since 1995, international organizations such as WTO have mounted
pressure to review the monopoly status of VSNL and the DoT’s monopoly
in long distance communication.