Growth and Development of Telecom Sector in India - An Overview
Published on Jan 1, 2014
After the implementation of the Federal Financial Integration Scheme on 1 st April, 1950, the administration of the entire network of telegraphs and telephone systems of the nation, including those that previously existed in the former princely state became a major adventure. India had around 84000 telephone lines for its population of 350 million at the time of its independence in 1947. India is the fastest growing economy post its liberalization and globalization activism and Asia's third largest economy behind Japan and China. India's telecom density is not so high as compared to the western market. These liberalization measures introduced in the telecom sector were expected to boost the investors' confidence, bring greater competition for the benefits of subscribers and develop modern telecommunication network in the country at a faster pace. The rapid growth in Indian telecom industry has been contributing to India's GDP at large. After independence the growth in telecom sector in public sector was fair and well planned. I. Introduction Telecom is an essential infrastructure for economic development and hence for the improvement of the quality of human life. The use of telephone is in different activities like social and economic, and gathering information and knowledge. From these the highest use goes to social activities. It is used for saving time and expenditure in social and financial contexts. In India people are interested in owning mobile phones. The mobile telephone connection is costly when compared with land phone connections, as the initial capital cost of handset purchase is more. Salaried and business people who are having comparatively high economic status were the most intensive users of mobiles. In the absence of cheaper fixed line services mostly in rural areas, there are increased use of WLL phones and mobile phones. But in such cases there arise problems in the case of range also. As the desired inter locator is reached through telephony, and the telephone is likely to be the quick way for communication, telephone has a considerable advantage over other communication channel in emergencies. Simplicity in access makes telephony more particular in the case of priority requirement for all socio-economic groups. The telecom services have been very much useful for promotion of employment. They create number of job opportunities in this new field. By the use of internet, doctors are getting consultancy from all over the world. One can interact with another and can receive important tips about a particular case from the experience of the other doctor. With the help of Telephone, producers and the middle men are able to gather information about the availability of raw material, market price and finished products. Telephone is considered as the means for obtaining and sharing information. Public Telephone facilities are useful to the poor also. It can replace the need to travel or postal costs. High level of use of telephone for Social networking implies that most of the rural areas are in need of subsidised access. Wider access to internet service is possible through the expansion of telecommunications connectivity. House holds in most contexts tend to spend, on average, between 2 per cent and 4 per cent of house hold income on telecommunications. The use of telephone for the acquisition of information and knowledge was very low till the introduction of availability of internet through phones. Most of the developing countries are facing the growth phase of telecom sector, because of the technology changes in accordance with the local geography. At the primary stage the numbers of mobile phone connections are lower than the number of land phone connections in developing countries. After 1995 most of the developing countries are facing rapid growth in the cell phone penetration. While considering the technological development in the telecom sector, India is late starter. India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian telecom network is the 8 th largest in the world and the second largest among the developing economies.