Abstract

The cellular phone industry is one of India's rapidly growing industries. Since the industry came into being in the mid 1990s, its average per annum growth rate has been a phenomenal 85 percent. By the end of 2002, the Indian cellular phone industry had over 10 million subscribers. The industry has undergone a number of changes over the years. The National Telecom Policy 1999 was an important landmark in the development of the cellular telecom industry in India, the tariff rationalization and policy regulation introduced in the Policy helped the industry grow at the pace it did. The years 2001 and 2002 saw an increase in level of competition in the industry with more operators being given licenses, and fixed line providers also entering the mobile market. In 2003, Telecom Regulatory Authority of India (TRAI) announced regulation of interconnect user charges to resolve conflicts between cellular operators and fixed line operators.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Cellular phone industry, 1990, per annum, growth rate, phenomenal, 85 percent, 2002, Indian cellular phone industry, 10 million, subscribers, National Telecom Policy, 1999, tariff rationalization, policy regulation, 2001, 2002, competition, operators, mobile market, 2003, Telecom Regulatory Authority of India, TRAI, interconnect user charges, conflicts, cellular operators, fixed line operators