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During government monopoly, having a telephone connection was a status symbol in society
and getting a new connection was a next to impossible ordeal. You needed to maintain good
relations with the Lineman for a steady working connection. As it is, telecom services,
particularly outstation calls were very expensive. To add insult to injury, time and again, you
would get an inflated bill on account of unauthorised use of your telephone line by a closeby
PCO or STD booth, thanks to ever-obliging telecom employees. Mobile phones and internet
were sort of unheard-of.
All that changed with opening up of Indian telecom sector to private participation and Foreign
Investment.
First changes came into effect in National Telecom Policy of 1994. Thereafter, the policy on
private participation and FDI has been evolving.
FDI limit in telecom sector has been slowly and steadily been increased, now it stands at up to
100%.
FDI in Telecom sector is subject to observance of licensing and security conditions by licensee
as well as investors as notified by the Department of Telecommunications (DoT) from time to
time, except "Other Service Providers", which are allowed 100% FDI on the automatic route.