TELEPHONE NETWORK CROSSES FIVE
CRORE MARK
CELLULAR
MOBILE SUBSCRIBER BASE TOUCHES 1.11 CRORE
ABOUT
84 PER CENT VILLAGES COVERED BY VILLAGE PUBLIC TELEPHONES
TELE-DENSITY
REACHES 4.88 PER CENT
BACKGROUNDER
Telecommunication
has emerged as one of the leading infrastructure sectors. Several
policy initiatives were taken towards making the country a leading
Telecom and IT Superpower. Priority areas were identified under
the New Telecom Policy (NTP’99) for the establishment of a world
class telecom infrastructure and services. Modernization was given
high priority. Today, India’s 51.1 million telephone network as
on 31st January, 2003 including mobile, is one of the
largest in the world and second largest among emerging economies
(after China). India is one of the fastest growing basic telephone
services with an average growth of about 22% and over 100 per
cent for cellular and internet services. Telephone lines added
to the basic services network over the last 5 years have been
one and a half times that added over the preceding five decades.
The New Telecom
Policy (NTP’99) laid special emphasis on providing telecommunication
services to rural areas and providing reliable media to all exchanges
by 2002. It has set a target to make available telephone on demand
by 2002 and to achieve a tele-density of 7 by 2005 and 15 by 2010.
It also envisaged transformation of telecom sector to greater
competitive environment by providing equal opportunities and level
playing field for all the players. Present tele-density is approximately
4.88 per cent as on January 31, 2003. Out of 6.07 lakh villages
in the country, the number of villages provided with telephone
facility which stood at 3.94 lakh as on January 31, 2001 has gone
up to 5,11,089 as on January 31,2003.
There has been
rapid growth in the number of subscribers being served by the
private basic service operators which has risen from 0.57 lakh
as on 30th September, 1999 to 9.65 lakh as on 31st
December, 2002. The number of Cellular subscribers in the country
has grown from 13.36 lakh as on September 30, 1999 to about 111.63
lakh as on 31st January, 2003.
Reduction in Tariffs
There
has also been a massive reduction in National and International
Long Distance tariffs since 1999. The reduction was upto 80% in
the National Long Distance tariffs from a maximum of Rs.24 per
minute to Rs.4.80 per minute, the highest ever decrease in tariff.
The reduction in the International Long Distance tariffs has been
by nearly 50% from Rs.48 per minute to Rs.24 per minute. The basic
rental for Limited Mobile telephony has been reduced by more than
half from Rs.450/- per month to Rs.200/- per month.
Public Grievance
Cell
The Public Grievance
Redressal system of the Department has been further strengthened.
The PG Cell has been computerised using Public Grievances Redressal
and Monitoring System(PGRAMS) software in the Ministry for better
and effective monitoring of PG complaints.
Private Sector
Participation
All the sectors
– basic, cellular and internet service etc. have been opened for
private participation and competition is being encouraged. The
DoT has also opened services like National and International Long
Distance for free competition and the process of granting license
is underway.
VALUE ADDED SERVICES
Cellular Mobile Telephone Services
Seventeen fresh licenses
for Cellular Mobile Telephone Services were granted during September/October,
2001. Approx. Rs. 1633.57 crores was received towards entry fee.
As a result of this, the Cellular Mobile Telephone Service sector
is open up for full competition; the number of service providers
per service area is only restricted due to spectrum constraint.
There has also been rapid growth in the number of cellular subscribers
in the country from 47,98,508 as on 30th September,
2001 to 1,17,56,047 as on 28th February, 2003.
Voice Mail/Audiotex
Service
New policy for Voice
Mail / Audiotex Service in terms of NTP’99 was announced in July,
2001 by incorporating a new service, namely, Unified Messaging
Service (UMS). UMS is a system by which voice mails, fax and e-mails
(all the three) can be received from one mail box using telephone
instrument, fax machine, mobile phones, internet browsers, etc.
Presently 7 companies have 28 licences to provide these services
in 15 cities.
Public Mobile
Radio Trunk Service (PMRTS)
Policy for Public
Mobile Radio Trunk Service (PMRTS) in terms of NTP’99 has been
announced on 1st November, 2001. The new PMRTS licences
shall be granted in digital technology only and it has also been
decided to provide PSTN connectivity to PMRT service. Presently
16 companies have 50 licences to provide this service in 25 cities.
Global Mobile
Personal Communication by Satellite (GMPCS)
Policy for grant
of license for Global Mobile Personal Communication by Satellite
service in terms of NTP’99 has been announced on 2nd
November, 2001.
LICENSING REGULATION
Internet Service
Providers
A Simplified Exit
Policy for Internet Service Providers (ISPs) was announced in
the month of Feb., 2002. Internet Telephony has been opened up
w.e.f. 1st April, 2002 and about 102 ISPs have been
permitted to offer Internet Telephony Service as on 28th
February, 2003.
Very Small Aperture
Terminal (VSAT)
As envisaged in the
New Telecom Policy 1999 (NTP’99) Government decided to award licenses
to VSAT services for operations in Ku band. This service provides
data (or voice) connectivity in Closed User Group (CUG) between
various sites scattered through out India using VSATs and a Central
Hub.
Based on the broad
guidelines issued on 10th May, 2001 for issue of VSAT
licences, eight out of ten VSAT service providers have already
migrated to revenue sharing regime under NTP-99. Broad guidelines
of INSAT MSS reporting service have been announced and two LOIs
have already been issued.
Communication
Convergence Bill
In terms of NTP’99,
a new comprehensive statute to replace the Indian Telegraph Act
1885 called the Communication Convergence Bill 2001 for the rapid
convergence of telecom, computers, television and electronics
was introduced in Lok Sabha on 31st August, 2001. The
bill was under the consideration of Parliamentary Standing Committee
on Information Technology. The committee has recently submitted
its Report and the observations and recommendations made by it
are under consideration of the Government.
Universal Service
Obligation (USO)
The NTP ‘99 seeks
to achieve the Universal Service Objectives such as provision
of voice and low speed data services to the uncovered villages
in the country, achieve Internet access to all district headquarters
and telephone on demand in urban and rural areas. Accordingly,
recommendations of TRAI were sought on issues relating to Universal
Service Obligation. Subsequently, an Administrator, Universal
Service Fund was appointed with effect from June 2002 in order
to ensure fair and transparent implementation of Universal Service
Obligation.
National Frequency
Allocation Plan (NFAP)
The National Frequency
Allocation Plan (NFAP), an important planning tool for the efficient
management of the scarce natural resource of radio frequency spectrum,
has been revised and the new National Frequency Allocation Plan-2002
(NFAP-2002) has been evolved within the framework of the Radio
Regulations of the International Telecommunication Union (ITU)
with a view to catering to the conflicting demands on the spectrum,
including those of new emerging technologies without unduly constraining
the existing usages.
C-DoT
Keeping the importance
of indigenous developments in the field of Telecommunications
in view, the first indigenously developed mobile system by C-DoT
has been installed as a pilot project in about a dozen important
cities and towns. The system is based on GSM technology. Some
of the important places where the mobile system is implemented
are Kolkata, Patna, Ranchi, Jamshedpur, Madurai & Coimbatore.
Along with the system, first indigenously developed billing center
by C-DoT has also been installed and commissioned at Kolkata.
Private Investment
Promotion (PIP)
A Private Investment
Promotion (PIP) Cell was established in the Department of Telecommunications
(DoT) to act as the Investors’ friend and to facilitate investment
proposals in the telecom sector.
Fiscal Incentives
Telecom service operators
to pay a reduced uniform Sales Tax of 4%, Reduction in Customs
duty on Cellular Phones from 26.67% to 14.4%, Telecom Services
companies allowed the benefit of carry forward losses on merger
under Section 72A of the Income Tax Act, Basic telephone including
WLL exempted from 1/6 Scheme of Income Tax and EHTP Scheme modified
to encourage Telecom / IT manufacturing sector
Record FDI Inflow
Foreign Direct Investment
(FDI) of about Rs. 4842 crores has been received from August 2001
to December, 2002. This is about 50% of the Total FDI received
in the telecom sector.
Growth and Development
of the Call centre industry
Growth in the telecom
infrastructure coupled with availability of trained/qualified
manpower made India a preferred destination for setting up of
call centres. It has helped the country in earning valuable foreign
exchange. Call Centre registration process has been simplified
and over one lakh new jobs created in the Call Centres alone.
Disinvestment
of PSUs
Twenty five per cent
equity with management control of VSNL has been given to Tata’s
for a total consideration of Rs. 1,439.25 crores and 74% equity
of HTL Ltd given to HFCL for a total consideration of Rs.55.00
crores.
Sanchar Dhabas
A scheme of ‘Sanchar
Dhabas’ has been launched by the DoT. These public-tele-info centres
would fulfill communication needs at the very doorsteps alongwith
variety of carried services in the villages.
Corporatisation
With effect from
1st October 2000, the service providing functions of
the Department of Telecommunications (DoT) were divested to a
newly created corporate entity – Bharat Sanchar Nigam Limited
(BSNL) in order to provide functional autonomy and decision making
powers to the incumbent operator in the emerging competitive environment.
Strengthening
The Regulator
The Telecom Regulatory
Authority of India (TRAI) Act was amended to reorganise and strengthen
the Regulator by giving additional functions and making it mandatory
to seek its recommendations in several fields. Further, a separate
high-powered body, Telecom Disputes Settlement and Appellate Tribunal
(TDSAT) has been set up for expeditious disposal of telecom disputes
under the Chairmanship of a retired Supreme Court judge for expeditious
disposal of telecom disputes. Appeals against the order of the
Appellate Tribunal lie to the Supreme Court.
Internet
Under internet service,
there are 400 existing licensees as on 31st December,
2002, out of which 186 have commenced service. The number of internet
subscribers has also witnessed exponential growth, which stands
at approximately 37 lakhs all over the country as on 31st
December, 2002.
Internet Telephony
New avenues have
been created by allowing Internet Telephony which has enabled
communications from the PC to telephone abroad and from PC to
PC anywhere in the country. With a view to facilitate customers,
Government announced 50% reduction in night time access charges
of internet. This measure was broadly to promote internet/computer
awareness. Total number of Internet Service Providers who have
been permitted to offer Internet Telephony Services from 1st
April, 2002 are 93. Another 24 ISPs have been given provisional
clearance for commissioning of International Gateways for internet
using satellite medium till November, 2002. During the year, the
Government also delicensed Indoor Wireless LAN in 2.4 GHz to boost
the IT sector through wireless connectivity for computers and
internet services for their use in buildings and campuses.
Bandwidth
Government has
taken a number of steps to ensure that adequate bandwidth – both
national and international, are available on demand. A Standing
Committee on Bandwidth has been constituted for overseeing the
requirements of bandwidth and leased circuits for Industry. Private
ISPs have been allowed to set up own Landing Stations For Submarine
Cables. Instructions have been issued to field units to expedite
the provisioning of domestic part of bandwidth and leased circuits.
Migration Package
A migration package
from fixed licence fee to revenue sharing was offered to the existing
cellular and basic service providers with moving from a regime
of duopoly to multipoly. The air time charges and rentals for
cellular mobile service also revised downwards. Government has
also approved a Migration Package for Radio Paging Operators.
Sanchar Sagar Project
The Project was conceived
to provide National Information Infrastructure, connectivity for
the National Internet Backbone and bandwidth on demand. Phase-I
of the Sanchar Sagar Project was completed in August, 2000. The
Phase-II Project has also been completed in the year 2002. Sanchar
Sagar Project connects many cities and towns. Bandwidth capacity
has been increased several times by the introduction of state-of-art
technology in the optical fibre network.
Development Council
For Telecom Sector
A Development
Council for Telecom Sector has been set up under the Chairmanship
of the Chairman, Telecom Commission, with representatives from
the Government and the industry. The Development Council will
recommend measures for the growth of telecom manufacturing sector
and the service sector.
Procurement Of
Telecom Equipment
As part of the
rationalisation process in the procurement of telecom equipment,
the DoT has decided to decentralise the powers to its field units
in a phased manner. The period between the date of Notice for
Inviting the Tenders (NIT) and opening of tender, which was earlier
two months, has been to one month in respect of all tenders.
Customer Care
The Government
owned PSUs namely the BSNL and the MTNL are providing computerised
directory service in major cities and towns of the country. Further
computerised billing, repair service etc. have been introduced
to enhance customer satisfaction. These companies have also launched
several new services like cellular mobile telephones, wireless
in local loop (WLL) telephone services, Internet service etc.
by providing a whole range of choices to customers.
Grievances Cell
Two Telecom Groups
and a Grievances Cell set up to improve the functioning of telecom
services in rural as well as urban areas of the country.
Direct-To-Home
Television Broadcasting
As a measure
to help in the introduction of Direct-to-Home(DTH) Television
broadcasting in India. Government removed prohibition on establishment,
maintenance, possessing or dealing of equipment capable of receiving
Ku band television broadcast signals directly from satellites.
North Eastern
Telecom Circle
The newly created
North-Eastern Telecom Circle inaugurated at its headquarters at
Dimapur in Nagaland will cater to Nagaland, Manipur and Mizoram.
The other North-Eastern Telecom Circle with its headquarters at
Shillong will cover the States of Arunachal Pradesh, Meghalaya
and Tripura.
Cellular Mobile
Service of MTNL & BSNL
Dolphin Cellular
Mobile Service of MTNL is operational in Delhi and Mumbai. The
Prime Minister launched BSNL’s countrywide ‘Cellone’ Mobile Service
in October, 2002. BSNL also launched the brand name for its pre-paid
cellular service ‘Ex-Cell’ and Internet telephony service ‘WebFone’.
Plans are also afoot to start mobile telephone services in Jammu
and other parts of Kashmir very soon.
WLL Service launched
Wireless in Local
Loop (WLL) has been introduced for providing telephone connections
in urban, semi-urban and rural areas promptly. The BSNL’s first
of country-wide WLL service has been launched at Gurgaon. The
service is being extended to other places progressively.
