A Note on the Cellular Industry in India|Business Reports

A Note on the Cellular Industry in India

            
 
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Case Details:

Report Code : BREP020
Report Length : 16 Pages
Period : 1997 - 2003
Organization : -
Pub Date : 2003
Teaching Note : Not Available
Countries : India
Industry : Cellular

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Abstract

The cellular phone industry is one of India's rapidly growing industries. Since the industry came into being in the mid 1990s, its average per annum growth rate has been a phenomenal 85 percent.

By the end of 2002, the Indian cellular phone industry had over 10 million subscribers. The industry has undergone a number of changes over the years.

The National Telecom Policy 1999 was an important landmark in the development of the cellular telecom industry in India; the tariff rationalization and policy regulation introduced in the Policy helped the industry grow at the pace it did.

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The years 2001 and 2002 saw an increase in level of competition in the industry with more operators being given licenses, and fixed line providers also entering the mobile market.

In 2003, Telecom Regulatory Authority of India (TRAI) announced regulation of interconnect user charges to resolve conflicts between cellular operators and fixed line operators.

Economic theory suggests that there is a positive correlation between infrastructure and economic development. Telecommunications is one of the most important types of infrastructure. Communication is said to be the life-blood of economic activity. Systems of communication assume critical importance when globalization and contraction of geographic distances have become the order of the day.

International studies indicate that for every one percent increase in the teledensity (penetration rate of telecommunications) of a country, there is a corresponding increase of three percent in the gross domestic product of the country...

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