Telecommunication has been recognized as a crucial infrastructure for socio-economic development of a nation. It is also one of the prime support services, needed for rapid growth and modernization of the various sectors of an economy. India's telecommunication network is the third largest in the world and the second largest among the emerging economies of Asia. It still continues to grow at an unprecedented pace and is one of the key sectors responsible for India's resurgent economic growth. The number of telephones has increased from 44.97 million (as on 31st March 2002) to 142.09 million (as on 31 March 2006) and 190 million (till December 2006) and 203 million (by February 2007). Also, the tele density in the country has steadily increased from 4.29% (as on 31st March 2002) to 16.83% (as on 31st December 2006).

The Department of Telecommunications, under the Ministry of Communications and Information Technology, is the concerned authority for all matters relating to telecom. The department is responsible for formulating the developmental policies; granting licenses for various telecom services; promoting standardization, research and development as well as private investment in the sector. Accordingly, the 'New Telecom Policy (NTP)' was announced with a focus on creating an efficient communication infrastructure through technological development and attracting investment into the sector. The objectives of the policy are to:-

• Make available affordable and effective communications for the citizens.
  
  
• Strike a balance between the provisions of universal services and high-level services.
  
  
• Encourage the development of telecommunication facilities in remote, hilly and tribal areas of the country.
  
  
• Create a modern and efficient telecommunications infrastructure and thereby propel India into becoming an IT superpower.
  
  
• Strengthen research and development (R&D) efforts in the country and provide an impetus to build world-class manufacturing capabilities.
  
  
• Enable Indian telecom companies to become truly global players.

As a result of all such initiatives, the share of private sector in the number of telephones has increased from 15.12% (6.80 million telephones) in March 2002 to 65.0% (123.44 million telephones) in December 2006. Also, the actual inflow of foreign direct investment (FDI) in telecom sector from August 1991 to January 2007 has been Rs. 11817.78 crore. It shows that the rapidly increasing demand for telecom services like basic telephone services, cellular, radio paging, value-added services, internet and global mobile communication by satellite (GMPCS) services, unfolds immense opportunities to potential investors in the sector.

For more details visit our Section on 'Infrastructure'

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