Presented by-

Sanjaya kumar mallik

(PGDM-TM),XIMJ

Outline of presentation

Introduction to telecommunication.

Importance of telecommunication.

Telecommunication in India .

Growth of Telecom in India.

Present scenario of Indian telecom sector.

Indian Telecom Industry Framework.

Functions of DoT, TRAI & TDSAT.

Conclusion .

Introduction to telecommunication Telecommunication is the transmission and reception of messages

over long distances.

Telecommunications is the communication of information by

electronic means usually over some distance.

Modern telecommunication systems send and receive sound, printed

materials, and visual images in a fraction of a second.

Importance of telecommunication

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.

The entire sector is now open to unrestricted competition in all. The

opening of the sector has not only led to rapid growth but also helped

a great deal towards maximization of consumer benefits.

Telecommunication in India With a strong population of over 1.1 Billion, India has become one of the

most dynamic and promising player in telecom market .

The Indian telecommunications industry is the world's fastest growing

telecommunications industry, with 742.12 Million telephone (landlines and

mobile) subscribers and 706.69 Million mobile phone connections as of Oct

31st 2010.

The sector is growing at a speed of 45% during the recent years.

As the fastest growing telecommunications industry in the world, it is

projected that India will have 1.159 billion mobile subscribers by 2013.

The industry is expected to reach a size of 344,921 crore (US$74.85

billion) by 2012 at a growth rate of over 26 per cent, and generate

employment opportunities for about 10 million people during the same

period.

1994 National Telecom Policy – 1994 announced.

Aug 1995 Kolkata became the first metro to have a cellular network.

1997 Telecom Regulatory Authority of India was setup.

1999 Tariff rebalancing exercises gets initiated.

March 1999 National Telecom Policy – 99 announced.

Growth of Telecom in India

Aug 1999 License fee (revenue share) reduced from

provisional 15% to 12%, 10% & 8% on

Circle wise basis (A type, B type & C type circles)

2000 TRAI Act amended & separate tribunal

proposed

Jan 2001 TDSAT started functioning

Jan 2001 Policy announced for additional licenses in

Basic and Mobile Services

Jan 2001 Limited mobility allowed to Basic Services

(CDMA spectrum allotted to Basic Service

Operators)

Countinued

Oct-2002 BSNL entered in to GSM cellular operation

w.e.f 19th October, 2002. Made incoming

call free & initiated tariff equalization process

tariff for GSM cellular mobiles reduced.

Nov 2003 Unified Access (Basic & Cellular) Service License (USAL) introduced as a first step

towards Unified License Regime Technology neutral and allows provisioning any kind of service

Apr 2004 License fee reduced by 2% across the board for all the access licenses

Continued

Present scenario Data as on 30th sep 2010

Telecom subscriber(wireless+ wire line)

Total 723.28m

%change in pre. quater 7.68%

Urban 487.07m

rural 236.21m

Teledensity 60.99

Urban teledensity 137.25

Rural teledensity 28.42

Wire less

Total wireless 687.71m

%change in pre. Quarter 8.21%

Urban subscriber 460.63m (66.98%)

Rural subscriber 227.08m (33.02%)

GSM subscriber 578.49m(84.12%)

CDMA subscriber 109.22m(15.88%)

Teledensity 57.99

Urban teledensity 129.80

Rural teledensity 27.32

Wire line subscriber

Total wire line subscriber 35.57m

% change in previous quater -1.70%

Urban 26.44m (74.34%)

Rural 9.13m()25.66%

Indian Telecom Industry Framework

Indian Government Bodies Independent Bodies

Wireless Planning and Coordination (WPC)

Department of Telecommunicati-ons

Telecom

Commission

Telecom Regulatory Authority of India (TRAI)

Telecom Disputes

Settlement and

Appellate Tribunal

(TDSAT)

Handles spectrum allocation and management

DoT – Licensee and

frequency management

for telecom

Exclusive policy

making body of DoT

Independent regulatory body

Telecom disputes settlement body

They formulate various policies and

pass laws to regulate the telecom

industry in India.

They undertake various research

activities and monitor the quality of

service provided in the Indian telecom

industry. They also provide various

recommendations to improve the status

of telecom operations in India.

.

Governance bodies

DoT

TRAI

TDSAT

Department of Telecom(DoT)

In 1975, the Department of Telecom (DoT) was separated from Indian Post & Telecommunication Accounts and Finance Service

DoT was responsible for telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai.

The demand for telephones was ever increasing. It was during this period that the Narsimha Rao-led government introduced the national telecommunications policy [NTP] in 1994 which brought change in telecommunication

The Government of India corporatized the operations wing of DoT on 1 October 2000 and named it as Bharat Sanchar NigamLimited (BSNL).

Vision To provide to the people of India, reliable and affordable tele-

connectivity capable of delivering tele-services anytime, anywhere.

Mission

To develop a strong, vibrant and state-of-the-art telecommunication

network.

Promote Research and Development for India-specific applications

and for developing cutting edge technologies.

To provide seamless access , across the country and in particular rural

and remote areas .

Functions of DoT in telecom Policy, Licensing and coordination matters relating to

Telegraphs, Telephones, Wireless, Data , Facsimile, Telematics

services and other like forms communications.

Promotion of standardization, research and development in

telecommunications.

Promotion of private investment in telecommunications.

Allocates frequency and manages radio communications in close

coordination with the International bodies

TRAI

Formation-1997

Legal status -Created by Telecom Regulatory Authority of India

Act, 1997

Purpose/focus -Independent regulator

Headquarter- Mahanagar Doorsanchar Bhawan, Jawaharlal Nehru

Marg, New Delhi 110 002

Chairman -DR. J.S. SHARMA

MISSION OF TRAI

TRAI’s mission is to create and nurture conditions for the growth of

telecommunications including broadcasting and cable services in the

country in a manner and at a pace which will enable India to play a

leading role in the emerging global information society.

Regulatory Process (Adopted by TRAI)

Section 11(4) of the TRAI Act mandates TRAI to ensure transparency

in Discharge of its Functions.

To Ensure Transparency TRAI adopts the following process beforetaking any regulatory decisions-

Consultation Paper is issued soliciting comments from

stakeholders

The Comments of the stake holders are published on the website

Stake holders are invited in the Open House Discussions (OHDs)

organized in different parts of the country.

The issue is discussed in detail and after providing multiple

opportunity to the stake holders for submission of their views the

decision is taken by Authority.

Recommendatory functions of

TRAI Need and timing for introduction of new service provider.

Terms and conditions of license to service provider.

Measures to facilitate competition and promote efficiency in

operation of Telecom Services so as to facilitate growth.

Technological improvement in the services provided by services

providers.

Measures for development of technology and any other matter

related to the telecom industry in general.

Efficient management of available spectrum.

Ensure technical compatibility and effective inter-connection between

different service providers;

Continued…. Regulate arrangement amongst service providers of sharing their revenue

derived from providing telecommunication services.

Ensure compliance of terms and conditions of license.

lay down and ensure the time period for providing local and long distance

circuits of telecommunication between different service providers.

Facilitate competition and promote efficiency in the operation of

telecommunication services so as to facilitate growth in the industry.

protect the interest of the consumers of telecommunication service.

Monitor the quality of service and conduct the periodical survey of such

provided by the service providers

Continued….

Inspect the equipment used in the network and recommend the type

of equipment to be used by the service providers.

Maintain register of interconnect agreements and of all such other

matters as may be provided in the regulations.

Perform such other functions including such administrative and

financial functions as may be entrusted to it by the Central

Government or as may be necessary to carry out the provisions of

this Act.

TDSAT An integrated & comprehensive dispute settlement mechanism.

Set up on 29th May 2000 & started hearing w.e.f. Jan 2001.

TDSAT was established by carving out the adjudicatory functions from TRAI

83% cases disposed off from 2001 till 2007.

TDSAT was established with the view to protect the interest of the consumers and service providers of the telecommunication sector.

To encourage and ensure the growth of the telecommunication sector.

TDSAT function

To adjudicate any dispute

Between a licensor and a licensee.

Between two or more service providers.

Between a service provider and a group of consumers.

To hear and dispose of appeals against decisions of TRAI.

Central Govt. or State Govt. or a local Authority or any person

aggrieved by decision/direction/order of Authority may prefer an

appeal in TDSAT.

Analysis of Appeals – PSU/Pvt.

2001 2002 2003 2004 2005 2006 2007 2008

4

9

12

3

5 5

1

65

15

3

9

14

10

5

PSU PVT

PSU PVT Total

30

67

97

PSU/Pvt. - Total

Analysis of Appeals– Subject-wise

2001 2002 2003 2004 2005 2006 2007 2008

3

6

12

2

6

9

32

5

32 2

4

6 6

4

0 0 0 0 01

0 0

2

5

21

23

6

0

Int. Trff QOS Misc

Int Trf QoS Misc Total

4332

1

21

97

Total Subject Wise

Analysis of Appeals – Decision Wise

3

76

8

2

14

2

3

4

7

0

10

1 1

0 0

0

2

4

6

8

10

12

14

16

18

2001 2002 2003 2004 2005 2006 2007 2008

Against Favour

18

50

Against Favour

Total cases

13

2

11

Appeals filed

Appeals dismissed

Appeals pending

No. of appeals filed by SPs in Supreme Court against 50

decisions of TDSAT

8

1

7

Appeals filed

Appeals upheld

Appeals pending

No. of appeals filed by TRAI in Supreme Court against 18 decisions of

TDSAT

Conclusion

The Government and the regulatory authorities should design their

policies not only to ensure that the country reaches 100% tele-

density in the next 3 years but also ensure that it comes through a

sustainable and profitable business model.

The real challenge for the regulators is to combine healthy growth of

the industry with low tariff, which takes into account the interests of

both the consumers and the service providers.