Jun 5, 2011

Telecom Policy and Regulations

To usher as a shining star and reach the utopia of developed world horizons, India has reached one step closer by achieving yet another astounding milestone of crossing the unbelievable mark of 700 million telecom subscribers and tele-density of around 60% in august 2010. Not only this, we have also added surprisingly high figures of broadband and DTH connections to our quiver.

Reaching the above gamut has been made conducive by the favorable Telecom policies and regulations in Indian Telecom sector. We have seen a lot of government initiatives and policies since the last two decades in the form of liberalization 91, NTP 94 & 99, USOF, Unified Access Services regime, Broadband policy 2004 etc.
Recently, we have witnessed few proactive and bold initiatives like MNP, 3G auctioning and regulations with respect to hoarding & selling of acquired spectrum, roll out of services etc.
It is due to these policies and regulations that we are able to manage the growth of our Telecom sector. We could also manage few of the cross border deals in the recent past like Bharti-Zain’s, Tata-NTT DoCoMo etc.
But, are these policies and regulations complete in themselves? Are they making us more full proof or are just increasing our growth and figures with a hollow base of regulations?
According to recent survey by KPMG conducted across 100 Indian and multi-national corporations, Telecommunication sector has been voted as the second most corruption-prone sector in India. It is also believed that India can surpass an annual growth rate of over 9 per cent if this corruption is controlled.
We should strive to contemplate of these issues with the some profound thinking.

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