The Telecom Revolution In India

A comprehensive survey of all segments of the Indian telecommunications sector-basic, mobile, national and long distance telephony, internet, satellite, television, and FM broadcasting services. Discussing network externalities economies of scale and scope, it analyses their effects on market structure and regulation.

Telecom, a phenomenon of the 1990s, has been witnessing tremendous growth, contributing to more than 2 per cent of India's GDP. Once considered a luxury, it is now accessible to all sections of society. Penetrating to even the remotest corners of the country, it is now propelling a revolution. Next to China, India is today the second largest telecom market in the world. This book highlights the unique cost structure, tariff regulation, and universal service obligations of basic telecom services. It dwells upon the different stages of spectrum allocation and management, including third generation and broadband wireless services. The trade-off between competition and industry efficiency due to limited spectrum availability and fragmentation is well emphasized. The value chain of the broadcasting sector and unique satellite applications are assessed. The book cites success stories of cost-effective operator services. The reasons for the lagging manufacturing sector in the telecom industry are carefully delineated. Finally, alliances and partnerships amongst different entities in the sector are analysed.

This book traces important legal and regulatory developments in the first two decades since the Telecom Regulatory Authority of India (TRAI) was established, along with its political and economic aspects. It narrates the story of the institutional progress of TRAI and its influence on the growth of India’s telecom sector. The telecom revolution was a game changer in post-liberalization India, a country today home to the second largest subscriber base in the world– more people have access to mobile phones than toilets. Its rapid, relentless growth has created new possibilities and challenges, including a robust regulatory policy. This book, the first comprehensive survey of TRAI’s progress, examines the salient developments in regulation of the Indian telecom sector. It analyses, at the macro-institutional level, the norms and rules reconstituted over time; at the institutional level, the impact of important court judgments, relevant telecom case law (including the 2G judgment and Adjusted Gross Revenue-related cases), and the ‘judicialization’ of regulatory governance; and, at the micro-institutional level, the mechanisms of governance of TRAI and the way its functioning has affected the alignment of incentives in the regulatory space. It provides an overview of the regulatory framework and the context in which the telecom sector was deregulated, the structure of internal governance, and issues in telecom licensing and spectrum allotment. The book combines academic rigour and empirical research with a practitioner’s perspective of the unfolding events. It will interest students and researchers of economics, law, public policy, communications technology, and ICT policy and regulation, as well as telecom sector professionals, service providers, academic experts, policymakers, and think tanks.

This book analyzes the growth of the Indian telecommunications industry in the era of liberalization - a period which has witnessed significant changes. Providing a detailed critique of government policy and of industry regulation, the author of this book maintains that the healthy growth of the industry requires a radical change in the entire policy approach. He questions the general impression that the telecommunications industry has been a great success. He offers an alternative way forward describing an efficent system of public policy generated through open public debate.

This book discusses the ideas, interventions (by different players) and technological revolutions that have transformed the telecom industry to propel it towards a growth cycle. Pursuing a comprehensive approach, it examines highly topical issues in depth, e.g. mobile data security via 4G, the new industrial revolution, green telecommunications, and consumer awareness of radio signals. Along with input from regulators, government organizations and industry players, expert opinion columns in each chapter clearly present the viewpoints of the industry and ministry. Several graphical tools are used throughout the book, helping readers to contemplate the text in different ways and to make concepts more “hands-on.” Readers will also gain a holistic perspective of the industry (key players, regulatory bodies and the consumer) and a clearer understanding of various policy issues and their implementation mechanisms, business dynamics and technology issues in this sector.