Telecom Regulation and Its Impact on the Growth of the Economy : An Indian Perspective

Indian telecom sector has witnessed a phenomenal growth in the last few years. India has the second largest telecom network in the world, and by March, 2016 the subscriber base stood at approximately 1,058.86 million. Telecom sector is recognized as an important tool for the socioeconomic development of a nation and plays a vital role in the growth of various sectors of economy, and with the Indian government's vision of a Digital India, the country has embarked on a focused journey to bring digital transformation in the lives of all its citizens. Over the last few years, Indian telecom market has experienced enormous growth because of several factors like domestic demand, policy initiatives and policy amendments, liberalization, structural and regulatory reforms and competition. The paper analyzes the process of transformation the sector has undergone from a monopolistic to a competitive environment with the introduction of major policies. Policies like the National Telecom Policy of 1994, establishment of the Telecom Regulatory Authority of India (TRAI) in 1997, and the reemphasized New Telecom Policy of 1999 and many more over the period of time were introduced to bring in a regulatory mechanism in order to sustain the competitive environment in the sector. These policy reforms have helped in addressing the issues pertaining to this sector like quality of service, protection of consumer interests and the growth of telecom services. The paper discusses the rationale behind the policies taken and analyzes each one of it, further explaining the benefits that stakeholders of the sector enjoyed