Policy Reforms and new Initiatives in Telecom Sector

Since 1991,the telecom sector in India has been witnessing a continuous process of reforms. During the recent years, various policy initiatives have been carried out to give boost to the sector. Major policy initiatives and milestones achieved in telecom sector include:

Mobile Number Portability (MNP):

• MNP was launched by the Prime Minister on January 20, 2011. The MNP service allows subscribers to retain their existing mobile telephone number even when they switch from one access service provider to another irrespective of mobile technology or from one technology to another technology of the same or any other access service provider within the same service area.
  
  
• Implementation of MNP has not only given wider choices to the Indian subscribers but has also induced service providers to offer innovative, affordable and competitive traffic plans for the benefit of the masses. During the year 2011 (as on November 30), 19 million mobile customers have successfully ported their mobile numbers to the service providers’ of their choice.
  
  
• As per the data reported by the service providers, by the end of June 2012 about 54.33 million subscribers have submitted their requests to different service providers for porting their mobile number. In MNP Zone-I (Northern & Western India) maximum number of requests have been received in Rajasthan (5.06 million) followed by Gujarat (4.94 million) whereas in MNP Zone-II (Southern & Eastern) maximum number of requests have been received in Karnataka (6.43 million) followed by Andhra Pradesh Service area (5.20 million). In the month of June 2012, total number of subscribers who have submitted their request for MNP is 4.16 million.

3G and BWA services

The commendable growth of the mobile sector in India is yet to be followed in broadband sector. While the last few years were witness to mobile revolution, the next few years look even more exciting in the field of broadband and mobile value added service (MVAS). After two decades of strong growth in voice services, data services will be the next trigger for growth in the Indian telecom market- for both the wire line and wireless segment. Data usage is expected to grow at a faster pace with 3G and BWA deployments. Increasing use of smart mobile devices like I-Phones are also expected to catalyze the data usage growth.

Value Added Services (VAS)

The mobile value added services such as m-banking, m-education, m-governance, m-health, m-agriculture, etc. has assumed significance in recent times due to the rapid growth in wireless subscriber base. Consequently, the mobile phones have transformed into a persuasive medium to deliver information services spanning various usage areas such as governance, commerce, agriculture, education and health. Thus, m-POWERING is playing an instrumental role in bringing about empowerment to all strata of society by their delivery of services.

Manufacturing of Telecom Equipments

The exponential growth witnessed by the telecom sector in the past decade has led to the development of the telecom equipment manufacturing and other supporting industries. With the advent of next-generation technologies and operators looking to roll out 3G and broadband wireless access services, the demand for telecom equipment has increased rapidly. In an attempt to capitalize on this opportunity, the government is focusing on developing the domestic manufacturing industry. The Indian equipment manufacturing sector has come a long way in the past few years. From being an import-centric industry, it is slowly but steadily moving towards becoming a global telecom equipment manufacturing hub. In 2002-03, India produced telecom equipment worth US$ 2.59 billion, which increased to US$ 9.34 billion in 2010-11, registering a growth of 265 per cent.

The country is not only emerging as a manufacturing hub but is also planning to increase its telecom exports. In the year 2006-07, India exported equipment worth US$ 0.34 billion, which increased by over 730 per cent to US$ 2.84 billion in 2010-11.

The export and import of Telecom Equipments during 2010-11 and projection for 2011-12 are as under:

Source:Department of Telecommunications

India Telecom 2011

Department of Telecommunications in association with Federation of Indian Chambers of Commerce and Industry (FICCI) organized the 6th edition of India Telecom exhibition and conference i.e. “India Telecom 2011” from 7th to 9th December, 2011 at Pragati Maidan, New Delhi with the objective of promoting and showcasing the capabilities and opportunities in India Telecom sector, the theme was “M-Powering India”.

The conference brought the government, policy makers, potential investors, academia and non-governmental organizations together at a common platform to discuss how telecommunication can lead to an “all inclusive growth” of the Indian economy in terms of growth of GDP, employment and revenues, among others.

The Prime Minister of India graced the occasion by th addressing the participants of the event during the inaugural ceremony on 7 December 2011. The exhibition witnessed a huge success with more than 235 domestic and international IT/Telecom companies, participation was close to 20,000 ICT professionals from over 38 countries and 5 country pavilions.