INTRODUCTION

The Indian telecommunication industry, with about 600.69 million mobile phone

connections as of February 2010, is the third largest telecommunication network in the world

and the second largest in terms of number of wireless connections of 563.73 million. The

Indian telecom industry is one of the fastest growing in the world and is projected that India

will have 'billion plus' mobile users by 2015. Projection by several leading global

consultancies is that India’s telecom network will overtake China’s in the next 10 years. For

the past decade or so, telecommunication activities have gained momentum in India. Efforts

have been made from both governmental and non-governmental platforms to enhance the

infrastructure. The idea is to help modern telecommunication technologies to serve all

segments of India’s culturally diverse society, and to transform it into a country of

technologically aware people.

EVOLUTION OF THE INDUSTRY AND MILESTONES

WIRELESS SERVICES IN INDIA

The Mobile telecommunications system in India is the second largest in the world and

it was thrown open to private players in the 1990s. The country is divided into multiple

zones, called circles (roughly along state boundaries). Government and several private

players run local and long distance telephone services. Competition has caused prices to drop

and calls across India are one of the cheapest in the world. The rates are supposed to go down

further with new measures to be taken by the Information Ministry. The mobile service has

seen phenomenal growth since 2000. In September 2004, the numbers of mobile phone

connections have crossed fixed-line connections. India primarily follows the GSM mobile

system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The

dominant players are Airtel, Aircel Uninor, Reliance Infocomm, Vodafone, Idea cellular and

BSNL/MTNL. There are many smaller players, with operations in only a few states.

International roaming agreements exist between most operators and many foreign carriers.

Major players and their market share

WIRELINE SERVICES IN INDIA

Landline service in India is primarily run by BSNL/MTNL and Reliance Infocomm though

there are several other private players too, such as Touchtel and Tata Teleservices. Landlines

are facing stiff competition from mobile telephones. The competition has forced the landline

services to become more efficient. The landline network quality has improved and landline

connections are now usually available on demand, even in high density urban areas. The

breakup of wireline market share in India as of february 2010 is given below.

MAJOR PLAYERS IN INDIAN TELECOMMUNICATION INDUSTRY

BSNL

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation

Limited) is a state-owned telecommunication company in India. BSNL is the sixth largest

cellular service provider, with over 57.22 million customers as of December 2009 and the

largest land line telephone provider in India. Its headquarters are at Bharat Sanchar Bhawan,

Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status

assigned to reputed public sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a

customer base of 90 million as of June 2008. It has footprints throughout India except for the

metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March

31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million CDMA-

WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Year

ending March 31, 2009 stood at INR 397.15b (US$7.03 billion) with net profit of INR 78.06b

(US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The company is

planning an IPO within 6 months to offload 10% to public in the Rs 300-400 range valuing

the company at over $100 billion.

BHARTI

Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest

cellular service provider in India, with more than 124 million subscribtions as of February

2010. With this, Bharti is now world’s third-largest, single-country mobile operator and

sixth-largest integrated telecom operator. It also offers fixed line services and broadband

services. It offers its TELECOM services under the Airtel brand and is headed by Sunil

Bharti Mittal. The company also provides telephone services and broadband Internet access

(DSL) in top 95 cities in India. It also acts as a carrier for national and international long

distance communication services. The company has a submarine cable landing station at

Chennai, which connects the submarine cable connecting Chennai and Singapore.

It is known for being the first mobile phone company in the world to outsource everything

except marketing and sales. Its network operations are provided by Ericsson, business support

by IBM and transmission towers by another company. Ericsson agreed for the first time, to be

paid by the minute for installation and maintenance of their equipment rather than being paid

up front. This enables the company to provide pan-India phone call rates of Rs. 1/minute

(U$0.02/minute).

The businesses at Bharti Airtel have always been structured into three individual strategic

business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services.

The mobile business provides mobile & fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband &

telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service,

Airtel Digital TV.

VODAFONE

Vodafone Essar, formally known as Hutchison Essar is a cellular operator in India

that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned by

Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in terms

of revenue behind Bharti Airtel, and third largest in terms of customers.

On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li

Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications,

Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole

company was valued at USD 18.8 billion. The transaction closed on May 8, 2007. Despite the

official name being Vodafone Essar, its products are simply branded Vodafone. It offers both

prepaid and postpaid GSM cellular phone coverage throughout India with good presence in

the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM

technology, offering voice and data services in 23 of the country's 23 licence areas. It is

among the top three GSM mobile operators of India.

RELIANCE

Reliance Communications, formerly known as Reliance Infocomm, along with

Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures

(RCoVL).Reliance Communications Limited founded by the late Shri Dhirubhai H Ambani

(1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The

Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs. 64,000

crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs.

8,400 crore (US$ 1.8 billion).The Equity Shares of RCOM are listed on Bombay Stock

Exchange Limited and National Stock Exchange Limited. The Global Depository Receipts

and Foreign Currency Convertible Bonds are listed on Luxembourg Stock Exchange and

Singapore Stock Exchange respectively.

TATA TELESERVICES

Tata Teleservices is part of the Tata Group. Tata Teleservices spearheads the Group’s

presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch

CDMA mobile services in India with the Andhra Pradesh circle.

The company acquired Hughes Telecom (India) Limited [now renamed Tata Teleservices

(Maharashtra) Limited] in December 2002. With a total Investment of Rs 19,924 Crore, Tata

Teleservices has created a Pan India presence spread across 20 circles that includes Andhra

Pradesh, Chennai, Gujarat, J & K, Karnataka, Delhi, Maharashtra, Mumbai, North East,

Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh

(E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.

Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has

established 3G ready telecom infrastructure. It partnered with Motorola, Ericsson, Lucent and

ECI Telecom for the deployment of its telecom network.

The company is the market leader in the fixed wireless telephony market with a total

customer base of over 3.8 million.

Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless Desktop

Phones, Public Booth Telephony and Wireline services. Other services include value added

services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group

calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services.

Some of the other products launched by the company include prepaid wireless desktop

phones, public phone booths, new mobile handsets and new voice & data services such as

BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive

applications like news, cricket, astrology, etc.

Tata Indicom "Non Stop Mobile" allow pre-paid cellular customers to receive free incoming

calls.

Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited have a

subscriber base of 36 million customers (as of April 2009) in more than 5,000 towns. Tata

Teleservices has also acquired GSM licenses for specific circles in India.

Tata Telelservices is an unlisted entity. Tata Group and group firms own the majority of the

company; NTT docomo holds 26% while investor C. Sivasankaran holds 8%.

IDEA

Idea Cellular is a wireless telephony company operating in all the 22 telecom circles

in India based in Mumbai. It is the 3rd largest GSM Company in India behind Airtel and

Vodafone and ahead of state run player BSNL.

In 2000, Tata Cellular was a company providing mobile services in AP. When Birla-AT&T

brought Maharashtra and Gujarat to the table, the merger of these two entities was a reality.

Thus Birla-Tata-AT&T, popularly known as Batata, was born. In 2001, the Batata triumvirate

agreed to merge its operations with the Rajeev Chandrasekhar promoted BPL

Communications. The merger could have brought in regions like Mumbai, Maharashtra,

Kerala and Tamil Nadu, which seemed to be a perfect accompaniment to what it already had.

This was critical with the bid for the fourth operator licence round the corner. However, the

engagement with BPL was broken. Then Idea set sights on RPG’s operations in Madhya

Pradesh which was successfully acquired, helping Batata have a million subscribers, and the

licence to be the fourth operator in Delhi was clinched. In 2004, Idea (the company had by

then been rechristened) bought over the Escorts group’s Escotel gaining Haryana, Uttar

Pradesh (West) and Kerala — and licences for three more — UP (East), Rajasthan and

Himachal Pradesh. By the end of that year, four million Indians were on the company’s

network. In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good

bye to pursue an independent telecom business. And Idea was left only with one promoter,

the AV Birla group when the company’s stock listed on the bourses in March 2007, its

subscriber base was 13 million with presence in 11 circles. In less than three years, the

subscriber numbers have more than quadrupled. The public issue was oversubscribed 50

times and raised Rs 2,450 crore. In June 2008, Idea Cellular bought out BK Modi’s stake in

Spice Communications for Rs 2,700 crore adding Punjab and Karnataka circles. Modi’s joint

venture partner, Telekom Malaysia, invested Rs 7,000 crore for a 14.99% stake in Idea. Just

around then, Idea’s subsidiary, Aditya Birla Telecom sold a 20% stake to US-based

Providence Equity Partners for over Rs 2,000 crore.

The company has its retail outlets under the "Idea n' U" banner. The company has also been

the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in

urban areas.

Idea Cellular won the GSM Association Award for "Best Billing and Customer Care

Solution" for 2 consecutive years.

AIRCEL

Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid

GSM cellular phone coverage throughout India. Aircel is a joint venture between Maxis

Communications of Malaysia and Apollo Hospital Enterprise Ltd of India. Maxis has a 74%

stake in Aircel and the remaining 26% is with Apollo Hospitals. It is India’s fifth largest

GSM mobile service provider with a subscriber base of over 27.7 million, as of October 31,

2009. It has a market share of 12.8% among the GSM operators in the country. As on date,

Aircel is present in 18 of the total 23 telecom circles (including Andhra Pradesh, Assam,

Bihar & Jharkhand, Chennai, Delhi & NCR, Himachal Pradesh, Jammu & Kashmir,

Karnataka, Kerala, Kolkata, Mumbai, North East, Orissa, Rest of Maharashtra & Goa, Rest of

Tamil Nadu, Rest of West Bengal, Uttar Pradesh East, Uttar Pradesh West) and with licences

secured for the remaining 5 telecom circles, the company plans to become a pan-India

operator by 2010. Additionally, Aircel has also obtained permission from Department of

Telecommunications (DoT) to provide International Long Distance (ILD) and National Long

Distance (NLD) telephony services. It is also a category A ISP. It is also having the largest

service in Tamil Nadu.

MTS INDIA

MTS India, is a brand owned by Sistema Shyam TeleServices (SSTL). SSTL is a joint

venture company between Sistema {LSE-SSA} of Russia and Shyam Group of India.

Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along

with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public partake. SSTL

has the spectrum to provide mobile telephony services in all the 48 circles across the country.

Presently SSTL offers mobile telephony services in the Bihar-Jharkhand, Delhi, Haryana,

Karnataka, Kerala, Kolkata

Maharashtra (Pune), Mumbai, Rajasthan, Tamil Nadu and West Bengal circles. In a recent

development, SSTL tied up with Mobile TeleSystems OJSC of Russia to bring the globally

acclaimed telecom brand-MTS-to India. MTS is the 8th largest telecom brand in the world

and has recently been voted the 71st ranked brand out of the 100 top global brands in the

world by Millward Brown.

TELECOM POLICY ENIVIRONMENT IN INDIA

Liberalization

The process of liberalization in the country began in the right earnest with the

announcement of the New Economic Policy in July 1991. Telecom equipment manufacturing

was de-licensed in 1991 and value added services were declared open to the private sector in

1992, following which radio paging, cellular mobile and other value added services were

opened gradually to the private sector. This has resulted in large number of manufacturing

units been set up in the country. As a result most of the equipment used in telecom area is

being manufactured within the country. A major breakthrough was the clear enunciation of

the government’s intention of liberalizing the telecom sector in the National Telecom Policy

resolution of 13th May 1994.

National Telecom Policy 1994

In 1994, the Government announced the National Telecom Policy which defined

certain important objectives, including availability of telephone on demand, provision of

world class services at reasonable prices, improving India’s competitiveness in global market

and promoting exports, attractive FDI and stimulating domestic investment, ensuring India’s

emergence as major manufacturing / export base of telecom equipment and universal

availability of basic telecom services to all villages. It also announced a series of specific

targets to be achieved by 1997.

Telecom Regulatory Authority of India (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

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

Government.

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

country in manner and at a pace, which will enable India to play a leading role in emerging

global information society. One of the main objectives of TRAI is to provide a fair and

transparent policy environment, which promotes a level playing field and facilitates fair

competition. In pursuance of above objective TRAI has issued from time to time a large

number of regulations, orders and directives to deal with issues coming before it and

provided the required direction to the evolution of Indian telecom market from a Government

owned monopoly to a multi operator multi service open competitive market. The directions,

orders and regulations issued cover a wide range of subjects including tariff, interconnection

and quality of service as well as governance of the Authority.

The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a

Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the

adjudicatory and disputes functions from TRAI. TDSAT was set up 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, and to hear and dispose of appeals against any direction,

decision or order of TRAI.

New Telecom Policy 1999

The most important milestone and instrument of telecom reforms in India is the New

Telecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on

26th March 1999, to become effective from 1st April 1999. NTP-99 laid down a clear

roadmap for future reforms, contemplating the opening up of all the segments of the telecom

sector for private sector participation. It clearly recognized the need for strengthening the

regulatory regime as well as restructuring the departmental telecom services to that of a

public sector corporation so as to separate the licensing and policy functions of the

Government from that of being an operator. It also recognized the need for resolving the

prevailing problems faced by the operators so as to restore their confidence and improve the

investment climate.

Key features of the NTP 99 include:

Strengthening of Regulator.

National long distance services opened to private operators.

International Long Distance Services opened to private sectors.

Private telecom operators licensed on a revenue sharing basis, plus a one-time entry

fee. Resolution of problems of existing operators envisaged.

Direct interconnectivity and sharing of network with other telecom operators within

the service area was permitted.

Department of Telecommunication Services (DTS) corporatised in 2000.

Spectrum Management made transparent and more efficient.

All the commitments made under NTP 99 have been fulfilled; each one of them, in letter and

spirit, some even ahead of schedule, and the reform process is now complete with all the

sectors in telecommunications opened for private competition.

Internet Service Providers (ISPs)

Internet service was opened for private participation in 1998 with a view to encourage

growth of Internet and increase its penetration. The sector has seen tremendous technological

advancement for a period of time and has necessitated taking steps to facilitate technological

ingenuity and provision of various services. The Government in the public interest in general,

and consumer interest in particular, and for proper conduct of telegraph and telecom services

has decided to issue the new guidelines (Details) for grant of licence of Internet services on

non-exclusive basis. Any Indian company with a maximum foreign equity of 74% is eligible

for grant of licence.

Broadband Policy 2004

Recognizing the potential of ubiquitous Broadband service in growth of GDP and

enhancement in quality of life through societal applications including tele-education, tele-

medicine, e-governance, entertainment as well as employment generation by way of high-

speed access to information and web based communication; Government has announced

Broadband Policy in October 2004. The main emphasis is on the creation of infrastructure

through various technologies that can contribute to the growth of broadband services. These

technologies include optical fibre, Asymmetric Digital Subscriber Lines (ADSL), cable TV

network; DTH etc. Broadband connectivity has been defined as “ Always On” with the

minimum speed of 256 kbps. It is estimated that the number of broadband subscribers would

be 20 million by 2010. With a view to encourage Broadband Connectivity, both outdoor and

indoor usage of low power Wi-Fi and Wi-Max systems in 2.4 GHz-2.4835 GHz band has

been delicensed. The use of low power indoor systems in 5.15-5.35 GHz and 5.725-5.875

GHz bands has also been delicensed in January 05. The SACFA/WPC clearance has been

simplified. The setting up of National Internet Exchange of India (NIXI) would enable

bringing down the international bandwidth cost substantially, thus making the broadband

connectivity more affordable.

The prime consideration guiding the Policy includes affordability and reliability of

Broadband services, incentives for creation of additional infrastructure, employment

opportunities, induction of latest technologies, national security and brings in competitive

environment so as to reduce regulatory interventions.

By this new policy, the Government intends to make available transponder capacity for

VSAT services at competitive rates after taking into consideration the security requirements.

The service providers permitted to enter into franchisee agreement with cable TV network

operators. However, the Licensee shall be responsible for compliance of the terms and

conditions of the licence. Further in the case of DTH services, the service providers permitted

to provide Receive-Only-Internet Service. The role of other facilitators such as electricity

authorities, Departments of ITs of various State Governments, Departments of Local Self

Governments, Panchayats, Departments of Health and Family Welfare, Departments of

Education is very important to carry the advantage of broadband services to the users

particularly in rural areas.

Target has been set for 20 million broadband connections by 2010 and providing Broadband

connectivity to all secondary and higher secondary schools, public health institutions and

panchayats by 2010.

In rural areas, connectivity of 512 KBPS with ADSL 2 plus technology (on wire) will be

provided from about 20,000 existing exchanges in rural areas having optical fibre

connectivity. Community Service Centres, secondary schools, banks, health centres,

Panchayats, police stations etc. can be provided with this connectivity in the vicinity of

above-mentioned 20,000 exchanges in rural areas. DOT will be subsidizing the infrastructure

cost of Broadband network through support from USO Fund to ensure that Broadband

services are available to users at affordable tariffs.

Tariff Changes

The Indian Telecom Sector has witnessed major changes in the tariff structure. The

Telecommunication Tariff Order (TTO) 1999, issued by regulator (TRAI), had begun the

process of tariff balancing with a view to bring them closer to the costs. This supplemented

by Calling Party Pay (CPP), reduction in ADC and the increased competition, has resulted in

a dramatic fall in the tariffs. ADC has been abolished for all calls w.e.f. 1st October 2008.

The peak National Long Distance tariff for above 1000 Kms. in 2000 has come down

from US$ 0.67 per minute to US$ 0.02 per minute in 2009.

The International Long Distance tariff from US$ 1.36 per minute in 2000 to US$ 0.16 per

minute in 2009 for USA, Canada & UK.

The mobile tariff for local calls has reduced from US$0.36 per minute in 1999 to US$

0.009 - US$ 0.04 per minute in 2009.

The Average Revenue Per User of mobile is between US$ 5.06 - US$ 7.82 per month

Foreign Direct Investment (FDI)

In Basic, Cellular Mobile, Paging and Value Added Service, and Global Mobile Personal

Communications by Satellite, Composite FDI permitted is 74% (49% under automatic

route) subject to grant of license from Department of Telecommunications subject to

security and license conditions.

FDI upto 74% (49% under automatic route) is also permitted for the following: -

· Radio Paging Service

· Internet Service Providers (ISP's)

FDI upto 100% permitted in respect of the following telecom services: -

· Infrastructure Providers providing dark fibre (IP Category I);

· Electronic Mail; and

· Voice Mail

Subject to the conditions that such companies would divest 26% of their equity in favor of

Indian public in 5 years, if these companies were listed in other parts of the world.

In telecom manufacturing sector 100% FDI is permitted under automatic route.

The Government has modified method of calculation of Direct and Indirect Foreign

Investment in sector with caps and have also issued guidelines on downstream investment

by Indian Companies.

Guidelines for transfer of ownership or control of Indian companies in sectors with caps

from resident Indian citizens to non-resident entities have been issued

Investment Opportunities and Incentives

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.

No industrial license required for setting up manufacturing units for telecom equipment.

Automatic approval of 100 percent foreign equity, technology fee up to US $ 2 million,

royalty up to 5 percent for domestic sales and 8 percent for exports in telecom

manufacturing projects.

Foreign equity of 74% (49 % under automatic route) permitted for telecom services -

basic, cellular mobile, paging, value added services, NLD, ILD, ISPs - and global mobile

personal communications by satellite.

Full repatriability of dividend income and capital invested in the telecom sector.

Opportunities

India offers an unprecedented opportunity for telecom service operators, infrastructure

vendors, manufacturers and associated services companies. A host of factors are contributing

to enlarged opportunities for growth and investment in telecom sector:

An expanding Indian economy with increased focus on the services sector

Population mix moving favorably towards a younger age profile

Urbanization with increasing incomes

Investors can look to capture the gains of the Indian telecom boom and diversify their

operations outside developed economies that are marked by saturated telecom markets and

lower GDP growth rates.

Inflow of FDI into India’s telecom sector during April 2000 to March 2009 was about Rs

275,444 million. Also, more than 8 per cent of the approved FDI in the country is related to

the telecom sector.

3G & Broadband Wireless Services (BWA)

The government has in a pioneering decision, decided to auction 3G & BWA

spectrum. The broad policy guidelines for 3G & BWA have already been issued on 1st

August 2008 and allotment of spectrum has been planned through simultaneously ascending

e-auction process by a specialized agency. New players would also be able to bid thus leading

to technology innovation, more competition, faster roll out and ultimately greater choice for

customers at competitive tariffs. The 3G will allow telecom companies to offer additional

value added services such as high resolution video and multi media services in addition to

voice, fax and conventional data services with high data rate transmission capabilities. BWA

will become a predominant platform for broadband roll out services. It is also an effective

tool for undertaking social initiatives of the Government such as e-education, telemedicine, e-

health and e-Governance. Providing affordable broadband, especially to the suburban and

rural communities is the next focus area of the Department.

BSNL & MTNL have already been allotted 3G & BWA spectrum with a view to ensuring

early roll out of 3G & WiMax services in the country. They will pay the same price for the

spectrum as discovered through the auction. While, Honbl’e Prime Minister launched the

MTNL’s 3G mobile services on the inaugural function of ‘India Telecom 2008’ held on 11th

December 2008, BSNL launched its countrywide 3G services from Chennai, in the southern

Tamil Nadu state on 22nd February 2009.

Mobile Number Portability (MNP)

Mobile Number Portability (MNP) allows subscribers to retain their existing

telephone number when they switch from one access service provider to another irrespective

of mobile technology or from one technology to another of the same or any other access

service provider. The Government has announced the guidelines for Mobile Number

Portability (MNP) Service Licence in the country on 1st August 2008 and has issued a

separate Licence for MNP service w.e.f. 20.03.2009. The Department of Telecommunication

(DoT) has already issued licences to two global companies (M/s Syniverse Technologies Pvt.

Ltd. and M/s MNP Interconnection Telecom Solutions India Pvt. Ltd.) for implementing the

service.

MNP is to be implemented in Delhi, Mumbai, Maharashtra & Gujarat service areas of Zone –

1 and Kolkata, Tamil Nadu including Chennai, Andhra Pradesh & Karnataka service areas of

Zone - 2 within six months of the award of the licence i.e. by 20.09.2009 and in rest of the

service areas within one year of the award of the licence i.e. by 20.03.2010.

Quadrupling production in 2010.

Achieving exports of 10 billion during 11th Five year plan.

7. Research & Development

Pre-eminence of India as a technology solution provider.

Comprehensive security infrastructure for telecom network.

Tested infrastructure for enabling interoperability in Next Generation Network.

Doubling the telecom equipment R&D by 2010 from present level of 15%.