On 30 March 1999, the Indian government declared its New Telecom Policy (NTP), recognizing that building a world-class integrated telecom infrastructure is a major key to its future. The government aims to make telephones available on demand by 2002 and achieve a teledensity of 7 percent by 2005 and 15 percent by 2010.
The objectives of the NTP include promoting the idea that access to telecom is of utmost importance for achieving the country’s social and economic goals; encouraging development of telecom facilities in remote, hilly and tribal areas; and creating a modern telecom infrastructure, thereby propelling Indian into becoming an IT superpower.
Cellular. In the cellular segment of the industry, cellular mobile service providers (CMSPs) are permitted under the NTP to provide mobile telephone service and are allowed to carry their own long-distance traffic within their service areas without seeking additional licensing. Direct interconnection between a licensed CMSP and any other type of service provider (including another CMSP) in their areas of operation, including sharing infrastructure, is also allowed.
However, interconnectivity between service providers in different service areas is currently being reviewed in consultation with the Telecom Regulatory Authority of India (TRAI), the regulator established in January 1997. The results of this review are expected to be announced later this year.
Paging. Radio paging service providers (RPSPs) are permitted to provide paging services within their service areas. Direct interconnectivity between licensed RPSPs and any other type of service provider in an area of operation, including sharing infrastructure, is also permitted.
The radio paging licensees are required to pay a one-time entry fee. The concept of revenue sharing has been introduced in this sector.
Trunking. Public mobile radio trunking service providers (PMRTSPs) are permitted to provide mobile radio trunking services within their service areas of operation. Direct interconnectivity between licensed PMRTSPs and any other type of service provider in an area of operation shall, however, only be permitted after the government completes an examination of the legal implications.
PMRTSP licensees are required to pay a one-time entry fee. Apart from this fee, they would also be required to pay a license fee based on the revenue-sharing scheme.
Spectrum management. The government has recognized the necessity of efficiently using spectrum. As a result, the National Frequency Allocation Plan (NFAP) was established in 1981 and modified several times since.
The revised NFAP 2000 will be publicized by the end of 1999. The NFAP 2000 will feature information regarding allocation of frequency bands for various services.
Restructuring the DoT. Currently, the licensing, policy-making and service-provision functions fall under a single authority. The government has decided to separate the policy and licensing functions of the DoT from the service-provision functions as a precursor to corporatization. The corporatization of the DoT is expected to be carried by 2001.
– Ravi Singhania, resident partner of the New York office of Singhania & Co., a corporate and commercial law firm in India, and Kevin D’Amour, a partner with the law firm of Reed Smith Shaw & McClay L.L.P. in Pittsburgh, Pennsylvania, United States.
