History of Telecommunications Industry Essay

History of the Telecom Sector

• 1851First operational property lines had been laid by government near Calcutta (seat of English power) • 1881Telephone service introduced in India

• 1883Merger together with the postal program

• 1923Formation of Indian Radio Telegraph Organization (IRT) • 1932Merger of ETC and IRT in to the Indian Car radio and Cable television Communication Organization (IRCC) • 1947Nationalization of most foreign telecommunication companies to create the Blogposts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications • 1985Department of Telecommunications (DOT) founded, an exclusive provider of home and long service that might be its own regulator (separate from your postal system) • 1986Conversion of APPEAR IN into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecoms and Mahanagar Telephone Nigam Limited (MTNL) for services in metropolitan areas. 1997Telecom Regulating Authority of India made. • 1999Cellular Services happen to be launched in India, New National Telecom Policy is definitely adopted. • 2000DoT turns into a corporation, BSNL

Constraints

• Slow pace of the change process.

• It might be difficult to produce in-roads into the semi-rural and rural areas because of the not enough infrastructure. The service providers need to incur a huge initial fixed cost for making inroads in to this market. Reaching break-even below these situations may be difficult.

• The sector requires players with huge money due to the above mentioned constraint. Straight up entry service fees and lender guarantees symbolize a significant share of initial purchases. While the conditions are important, it tends to support the existing big and more mature players. Auto financing these requirements require a little more liberal way from the policy side.

• Problem of...



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