Telecom Study -

Deregulation and streamlining prices in telecommunication industry in Delhi

The Indian Telecom services sector was opened for private participation in 1994, based on National Telecom Policy (NTP) framed in that year which initiated the first generation reform process. However, in line with the rest of the world, the policy makers in India adopted an evolutionary approach towards competition and opted for limited competition that is allowing only two players in each of the four metro circles, which were opened for private players.

Before 1999, call rates were Rs 16.80/min for both outgoing & incoming calls for all the operators. In 1999 with the introduction of TTO (Telecom Tariff Order), call rates slashed to Rs 6/min since the telecom operators were given autonomy to fix their rates individually. For all of the operators taken for study call rates fell from as high as Rs. 5.4/ min in 2002 to as low as Rs. 1.2/ min in 2007.

Due to competition introduced through deregulation of the Telecom sector, services of operators have also improved as shown by increase in the talk time value available for recharges of the same amount. Also the validity that customers used to get has increased on the recharge of same amounts.

The study talks about the deregulation and its effects on Indian Market. The specific market talked here is the Indian capital – Delhi. Using graphs and tables these trends have been shown for all the telecom operators operating in this market. Also trends in the prices (call rates) of different telecom operators have been studied along with the services provided by major telecom players and the effect of telecom deregulation on Prices (call rates) and services provided by major telecom players have been shown

Click here to download the study done on the Delhi telecom market

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Study done by

Nisha Goel