Indian Telecom Industry - Microeconomic Perspective

10637 Words Feb 20th, 2006 43 Pages
CONTENTS

1. Acknowledgement
2. Introduction
a. Overview of the Industry
b. Timeline of the Indian Telecom Market
3. Market Structure: Present Scenario and Competitive Environment
a. Barriers to Entry in a telecom market
b. Overview of Market Structure and Evolution
c. Universal Service Obligation
d. Competitive Profile of the Telecom Sector
e. License Conditions Inhibiting Competition
f. Spectrum Assignment and Pricing
g. Interconnection Charges
h. Tariffs for Basic Service
i. Features of Indian Telecom Tariffs
j. Issues with Present Tariff Structure
4. Microeconomic Analysis
a. Demand and Supply
b. Costs
c. Basic Economic Cost Concepts
d. Concept of Costs used for determining prices
e. Pricing Methodologies
5. Issues Raised
a. Critical
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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. The TRAI cannot grant or renew licenses and this remains the DoT's responsibility. The TRAI may also set the rates for telecommunications services. Its decisions can only be challenged by the High Courts or Supreme Courts of India.

Table shows a chronological history of Indian Telecom Industry.
Mid '80s Department of Telecommunications set up
Mr. '86 VSNL incorporated to provide international telecom services
Apr. '86 MTNL incorporated to provide fixed-line telephone services in Mumbai and New Delhi
Dec. '91 DoT invites bids from Indian companies for cellular licenses in the four metropolitan circles
May '94 Government announces the National Telecom Policy, opening up the basic service sector to private players
Sept. '94 Entry guidelines for basic services announced
Nov. '94 Licenses were issued to cellular operators in the four metros
Jan. '95 Tenders floated for basic operators as well as cellular operators in non-metro sectors.
Mar. '95 Paging services by private operators commence
Oct. '96 Licenses for 20 cellular circles issued
Jan. '97 Telecom