Review of the Policy Changes in the Indian Telecom Sector: Implications for Decision Makers

In response to the business needs of faster, cheaper, and more varied modes of communication, the telecommunication sector in many countries has been undergoing rapid technological and structural changes over the past few years. Since the mid 80s, the telecommunication sector in India, too, has undergone major transformations. Private participation in the manufacture of end user equipment and services, reorganization of the monolithic Department of Telecommunication, and raising finances from the public for investment in the state owned factories and organizations have been some of the policy initiatives of the government. In a scenario where the features of the Indian telecom sector such as under-investment, amalgamation of regulatory and operational functions, ill-defined sector policies, and lack of financial and administrative autonomy are common to many other developing countries, the consequences of sectoral changes have implications both for decision makers at the national level as well as in other developing countries. This paper attempts to critically review the policy changes initiated by the government and draw lessons from them.