Set up in 1997, the TRAI is responsible facilitating interconnection and technical interconnectivity between operators, regulating revenue sharing, ensuring compliance with license conditions, facilitating competition and settling disputes between service providers.
India boasts of more than 900 million telecom subscribers today and also has the second largest telecom network in the world, after China.
2nd June, 201211 a.m. to 12 p.m.
HISTORYUntil the 1980s, under the Department of Posts and TelegraphsIn 1985, the Department of Posts and Telegraph was split up into theDepartment of Telecommunications (DoT) and the Department of Posts.On May 13, 1994, the government opened local basic and value-addedtelecommunications services to competition.Mobile services were introduced on a commercial basis in November 1994India was divided into 21 "Telecom Circles".In 1997, the Telecom Regulatory Authority of India (TRAI) was set up
LIBERALIZATION,REFORMS ANDCOMPETITIONMassive investments and explosion in supplyThe telecom policy of 1999 envisaged a tele-densityof 15 % by the year 2010.Over the past 10 years, India has registered thefastest growth (~ 30% CAGR)
PRESENTMore than 900 million telecom subscribersSecond largest telecom network in the world22 Telecom Circles15 Service providersPan India 3G Service4G Service in selected CitiesLowest mobile tariff in the worldMobile Number PortabilityFree RoamingOverall tele-density: 78.7 (urban teledensity is 168.84 and ruralteledensity is 38.04.
FUTURE GROWTHDRIVERSValue Added ServicesRising expenditure on communication activitiesSmart PhonesHeavy Data Usage (3G/4G)Rising Rural Service PenetrationShare of the working age population (15-58 years) in totalpopulation will grow from the current 55%to about 65%
VASCurrently account for only 10% of revenue (Expected to be30-40% by 2017)~50% OPMRs.158 bn in 2012 to Rs.500 bn by 2015Data Consumption (~ 60% of revenue)Mobile banking, mobile education, basic governanceservices, health information services, agriculture andentertainment
WHAT TO EXPECTGOING AHEAD?Underperformance to continue due to policy standstillsMargins will stabilizeConsolidation