With the total subscriber base almost reaching the 900 million mark, India boasts of the fastest growing and the second-largest telecommunications sector in the world after China.
The mobile phone which was once considered a luxury that few could afford has transformed into a device potent enough to make a difference in the life of each and every Indian. The positive regulatory environment and favourable policy reforms have played a crucial role in the success of the sector in the last decade.
The Indian telecom sector now stands at crossroads as it moves away from the dominance of the voice segment and the urban market to explore the growth potential in the data segment and the rural sector.
The government is well cognizant of the myriad possibilities that the telecom sector presents for inclusive and equitable growth of the country. A reflection of this is the draft of the National Telecom Policy 2011 that was released in October 2011, in the run up to the actual policy expected by early next year.
The draft hints at a progressive policy that can propel the Indian telecom sector to new heights of growth. The key focus areas of the draft policy include the growth of broadband, the relatively un-penetrated rural sector, domestic manufacturing and R&D, the licensing framework, spectrum allocation and management and security. The key highlights of the draft policy are as follows:
? Infrastructure status to the telecom sector
? One nation-one license
? Inclusive growth with special focus on rural market
? Focus on indigenisation of telecom equipment products and equipment
? Technology neutral unified license ?licensing of network operators and service providers
? Trading, sharing and pooling of spectrum to be permitted
? Convergence of voice, data, video, Internet, multimedia, broadcasting and value added services
The industry has perceived the draft as forward looking and directionally encouraging but keenly awaits details on time-lines and manner of implementation.
The industry also expects the Government of India to consider the following:
- According ?critical infrastructure? status to active and passive infrastructure in the telecommunications and broadband sector
- Clear outline on the migration of existing licenses and spectrum to the new licensing framework, pricing of existing 2G spectrum at the time of migration and the policy on exit of licensees, both currently and in the futurre
- Consolidation policy
- Mechanism for market discovery for future spectrum allocation
- Policy pronouncement on liberalisation of Foreign Direct Investment (FDI) into the sector
The draft policy is a step forward to create a win-win ecosystem where the utmost beneficiary is the subscriber. A detailed policy framework with a longer-term view will help foster balanced growth and competition in the sector
The industry takes immense pride and satisfaction in deliberating on the draft policy to help push the vision of providing the people of India with high quality, reliable and affordable converged telecommunications services.
