Lessons of reforms of the telecom sector

Abstract

The telecommunications sector has emerged as one of the key sectors that have put the Indian economy on a revival path. Proactive policies such as opening up the sector to private players and competition, unbundling the policy, regulatory and operational roles of the government, removal of restrictions on foreign investments coupled with viewing reforms as a continuous process created an environment conducive to growth. These reforms enabled induction of new technologies. In this paper, we examine the lessons of reforms of the Indian telecom sector. We first examine where the sector is in terms of its impact on service provision and to the economy in relation to the past. Then we outline the sector structure examining the role and relationships of different players. Next, we provide the roadmap of reforms carried out over two decades. From this, we abstract the enabling principles that drove the reform process and bring out lessons for other infrastructure sectors.