Pricing of Services to Consumers and the Need for Competitive Market: A Case Study of India's Telecom Sector

Abstract

Driven by the twin forces of technological advancement and a growing demand in wake of globalisation, the telecom sector made great strides in the 1980s. Indian government accorded a high priority to telecom sector, that witnessed some fundamental structural and institutional reforms. The opening up of the sector to domestic and international enterprises brought an unprecedented revolution .in availability and costs of telecom services. The entry of private players and sheer size of market made it necessary to put an effective regulatory mechanism in place. This article studies this process of reforms and evolution of regulatory authority. It also gives a background of similar process and experience in other countries. The Indian experience has been unfolded through data that show the competitive environment and advantage, reach of telecom services, and availability of reliable and cost-efficient services to citizens.