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Truth of Telecom Revolution in India

Date post: 05-Dec-2014
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This presentation explains what led to the mobile revolution & busts the common myth.
6
If you repeat a lie often… SuKaul Sam Pitroda and Rajiv Gandhi broke the state monopoly through C-Dot & unleashed the PCO revolution and because of that you have that phone in your pocket! Rajiv Gandhi & Sam Pitroda ushered in the PCO’s using state owned C-DoT. Rajiv Gandhi left office in 1989. In 1999, 10 yrs after Rajiv Gandhi left office & Sam Pitroda had been in USA for 8 yrs, tele-density rose to a mere 2.8% from a low of .6% in 1989. Is that a BOOM? A Telecom REVOLUTION that we have today? 1989 1999 0.00% 2.00% 4.00% Tele Density in 89 & 99 Tele Den... SuKaul
Transcript
Page 1: Truth of Telecom Revolution in India

If you repeat a lie often…

SuKaul

Sam Pitroda and Rajiv Gandhibroke the state monopoly through C-Dot & unleashed thePCO revolution and because of thatyou have that phone in your pocket!

• Rajiv Gandhi & Sam Pitroda ushered in the PCO’s using state owned

C-DoT. Rajiv Gandhi left office in 1989.• In 1999, 10 yrs after Rajiv Gandhi left office & Sam Pitroda had

been in USA for 8 yrs, tele-density rose to a mere 2.8% from a low of .6% in 1989.

• Is that a BOOM? A Telecom REVOLUTION that we have today?

1989 19990.00%1.00%2.00%3.00%

Tele Density in 89 & 99

Tele Density

SuKaul

Page 2: Truth of Telecom Revolution in India

Two important facts about the Telecom–boom in India

Growth driven by Private sector, not State owned companies like C-Dot or the govt.

Telecom boom is result of expansion of mobile telephony, NOT landline telephones or public call office(PCO) booths

SuKaul

Page 3: Truth of Telecom Revolution in India

Under NTP, ‘policy formulation’,

‘service provision’ and dispute

settlement roles of DoT were

separated .

NTP = New Telecom Policy

DoT = Dept of Telecom

In 1999, NTP

introduced

In 1998, DoT was deciding policy, adjudicating disputes and providing telecom services.Telephone penetration under DoT in India was a mere 2.8% in 1998

Telecom

policyServiceprovisio

nBirth of

Corporate, state owned telecom service provider BSNL on 1st Oct

2000

DisputeSettleme

nt

Telecom Dispute Settlement Appellate

Tribunal was created.

Headed Telecom Ministry in NDA govt.

So, what led to the telecom boom?

SuKaul

Page 4: Truth of Telecom Revolution in India

NTP, 1999

What led to the telecom boom?

Fixed licence fee payable upfront

lowered and revenue-sharing regime

introduced. 

On 15 August 2000, unlimited competition

introduced in domestic long-

distance telephony services

Import duties on mobile handsets cut from 25% to 5% in the 2000 budget

On 1 April 2002, VSNL

monopoly on international

telephony ended.

Headed Telecom Ministry in NDA govt.

SuKaul

Page 5: Truth of Telecom Revolution in India

1989 1999 20120.00%

50.00%

100.00%Tele Density in India

Tele Density

What led to the telecom boom?NTP (1999) curtailed the state’s role and created space

for private entrepreneurs to deliver cheap and reliable telecom service speedily on a massive scale, as a

result,Tele-density in India increased to a whopping 70% from a mere 2.8% in 1999! Headed

Telecom Ministry in NDA govt.

THIS, my friends has led to the REVOLUTION that got the Mobile in an ordinary Indian’s pocket & NOT the PCO booth!

SuKaul

Page 6: Truth of Telecom Revolution in India

References:

http://www.livemint.com/Opinion/biNfQImaeobXxOPV6pFxqI/The-story-of-Indias-telecom-revolution.html

http://nipun.charityfocus.org/docs/stdpco.html

 India—The Emerging Giant Arvind Panagariya


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