The Indian Telecom Story

Introduction: The Indian Telecom Sector has emerged as one of the

critical components of
economic growth required for overall socio-economic development of the
country. It has been established that there exists a positive correlation
between the penetration of mobile services/Internet and the rate of GDP
growth of a country. According to the World Bank, an increase in mobile
and broadband penetration increases the per capita GDP by 0.81% and
1.38% respectively in developing countries.
The turning point for India came in the early 1990s, as liberalisation set in.
As a result, the sector underwent a dramatic transformation from a
government monopoly to a competitive industry, comprising multiple
private players.
Active participation of private companies, foreign direct investment,
sequence of reform measures initiated by the Government and wireless
technology have all played an important role in the phenomenal growth
of the sector in the country.
History of the Telecom Sector in India
1851: First operational landlines were laid down in Kolkata.
1881: Telegraph facilities were opened to the public (separate telephone
services were introduced)
1883: Telephone services were merged with the postal system.
1911: The capital of India was shifted to Delhi. Telecom services were
being handled by the Public Works Department (PWD) head office there.
Pattern of control over Telecom Operations:
PWD DG Postal & Telegraph (DGP&T) Dept of Telecom (DoT).
The operations wing of DoT, Dept of Telecom Service (DTS) was
subsequently named as Bharat Sanchar Nigam Limited (BSNL)
Post-Independence nationalisation of Telecom Sector: Just after
independence, all foreign telecommunication companies were
nationalized to form Posts, Telephone and Telegraph (PTT). This was
operated by the GoI under the Ministry of Communications. The sector
remained under GoI monopoly until 1984, when private players were
gradually brought into the fold initially restricted to hardware
manufacturing.

The three phases that built up momentum towards opening up the sector:
Pre-Liberalisation
Era (1980 1989)
1984

1984

1985

1986

1991

1992

1993

1994

PostLiberalisation Era
(1990 1999)

Entry of Private
Sector into
Equipment Mfg.
Creation of
Centre for
Development of
Telematics (CDoT) towards
R&D
Separation of
Dept of Posts &
Telegraphs into
Dept of Posts and
Dept of Telecom
(DoT)
Formation of
MTNL and VSNL
Libseralisation
push made the
equipment
manufacturing
sector attractive
for foreign
players like
Alcatel, AT&T,
Ericsson, Fujitsu,
and Siemens
Value Added
Services like
cellular and
paging opened to
the private sector
Private Networks
allowed in
Industrial areas
Licences for
Radio Paging

Post-2000

1995

1997
1999

issues across 27
cities
15 Aug:
1. First mobile
telephone service
started on noncommercial basis
in Delhi.
2. Internet
Introduced in
India starting with
Laxmi Nagar,
Delhi.
TRAI established
New Telecom
Policy

2000

* BSNL
established.
* National Long
Distance (NLD)
and
International
Long Distance
(ILD) opened to
competition.
* Internet
telephony
launched
* CDMA
technology
launched

2002

* Privatisation of
VSNL
* BSNL launches
mobile services

2004

Formulation of
Broadband
policy
FDI limit
enhanced from
49% to 74%
Number
Portability first

2005

2006

proposed.
Where India stands today?
India has become the world's most competitive (and fastest growing)
telecom markets. The Industry has grown over twenty times in just ten
years, from under 37 million subscribers in the year 2001 to over 996
million subscribers as of March 2015. India has the world's second-largest
mobile phone user base with over 970 million users as of March 2015. It
has the world's third-largest Internet user-base with over 243 million as of
Dec 2014 (penetration of 20%).
The mobile tele-density had increased to 74.55% in September 2014.
Private operators hold 90.05 per cent of the wireless subscriber market
share whereas BSNL and MTNL, the two PSU operators hold only 9.95 per
cent market share.
India's telecommunication network is the second largest in the world
based on the total number of telephone users (both fixed and mobile
phone). In March 2015 alone, it added more than 9 million connections. In
contrast, the total wire line segment subscriber base stood at 27.41
million.
It has one of the lowest call tariffs in the world enabled by the mega
telephone networks and hyper-competition among them.
Major sectors of the Indian telecommunication industry are telephony,
internet and television broadcast (DTH, for instance) and radio (an
example being FM networks). These are linked to various parts of the
country through modern network elements including satellites
(telecommunication in India has greatly been supported by the INSAT
system of the country, one of the largest domestic satellite systems in the
world).

The modern network elements that enable all this include digital
telephone exchanges, mobile switching centres, interconnected by a wide
variety of transmission systems using fibre-optics or Microwave radio relay
networks. The access network, which connects the subscriber to the
core, is highly diversified with different copper-pair, optic-fibre and
wireless technologies.
Factors Facilitating Growth of the Sector - The phenomenal growth in
the Indian telecom industry was brought about by the wireless revolution
that began in the nineties. Besides this, the following factors also aided
the growth of the industry.

Liberalisation - The relaxation of telecom regulations post implementation

of liberalisation policies of 1991 led to the influx of private players. The
consequent competition led to high growth trajectory, thanks to greater
investments and access to cutting-edge technology. When the cellular
phones were introduced, call rates were at a peak of Rs 16 per minute and
there were charges for incoming calls too. Apart from these major growth
drivers, an improved network coverage, entry of CDMA players, growth of
value-added services (VAS), advancement in technology, and growing
data services have also driven the growth of the industry. Some of these
are described below
Increasing Affordability of Handsets - The meteoric rise in wireless
subscribers encouraged mobile handset manufacturers to enter the
market and to cater to the growing demand. With demand cutting across
demographics, manufacturers introduced lower-priced handsets with addon facilities to cater to the different strata of the society. Trends towards
lower costs / better features have triggered growth of the Indian telecom
industry.
Prepaid Cards Bring in More Subscribers - Prepaid cards were
revolutionary, in that they lured more subscribers into the industry while
lowering the credit risk of service providers due to its upfront payment
concept. Pre-paid cards helped the cellular market grow rapidly and cater
to the untapped market students and first-time users. Further, the
introduction of innovative schemes like recharge coupons of smaller
denominations and life time incoming free cards has led to an exponential
growth in the subscriber base.
Introduction of Calling Party Pays (CPP) - The CPP regime was introduced
in India in 2003 and under this regime, the calling party who initiated the
call was to bear the entire cost of the call. This regime came to be
applicable for mobile to mobile calls as well as fixed line to mobile calls.
So far India had followed the Receiving Party Pays (RPP) system where the
subscriber used to pay for incoming calls from both mobile as well as
fixed-line networks. Shifting to the CPP system has greatly fuelled the
subscriber growth in the sector.
Changing Demographic Profile - The changing demographic profile of India
has also played an important role in subscriber growth. The changed
profile is characterised by a large young population, a burgeoning middle
class with growing disposable income, urbanisation, increasing literacy
levels and higher adaptability to technology. These new features have
multiplied the need to be connected always and to own a wireless phone
and therefore, in present times mobiles are perceived as a utility rather
than a luxury.
Increased Competition & Declining Tariffs - Liberalisation of the telecom
industry has fuelled intense competition, especially in the cellular

segment. The ever-increasing competition has led to high growth of

subscribers and has put pressure on tariffs, which have seen a sharp drop
over the years.

Outlook
Cut-throat competition and intense tariff wars have had a negative impact
on the revenue of players. Despite the challenges, the Indian telecom
industry will thrive because of the immense potential in terms of new
users, new products and immense scope for value creation. India is one of
the most-attractive telecom markets because it is still one of the lowest
penetrated markets (rural penetration at <50% and broadband coverage
to just over 99 million people). The government is keen on developing
rural telecom infrastructure and is also set to roll out next generation or
3G services in the country. Operators are on an expansion mode and are
investing heavily on telecom infrastructure. Foreign telecom companies
are acquiring considerable stakes in Indian companies. Burgeoning middle
class and increasing spending power, the governments thrust on
increasing rural telecom coverage, favourable investment climate and
positive reforms will ensure that Indias high potential is indeed realised.

Industry Dynamics
Barriers to entry in the telecom industry are high and steady and the level
of tax burden is medium and stable. There is also a considerable amount
of assistance provided to the industry and the trend has been increasing.
The industry is highly regulated and the recent spectrum scam has only
lead to an increased scrutiny. The cost structure analysis identifies high
profit margins and major costs such as depreciation and network
operations expense incurred by the operators. This further justifies the

high capital intensity of the telecom industry. The report provides us an

analysis on such factors which gives us an insight into the conditions of
the telecom industry of India.
The supply chain of the telecom industry in India is fairly linear, with
telecom operators defining the quality, type of services and price. The
flow of orders in the supply chain is bottom/top - coming from the
customers and going through the operators, whereas, the flow of
services is top/bottom - coming through operators and going to the
customers.
Apart from the telecom operators, the other key players in the industry
are tower providers, equipment distributors and retailers.
The competition in the industry is moderate and the trend is increasing.
The wireless segment has a healthy mix of competition, with players such
as Bharti (Airtel), Reliance, Vodafone and Idea occupying almost an equal
share of the pie (totalling to about 68% of revenue) and BSNL continuing
to dominate the wireline market (accounting for over 70% of the revenue).
Rural competition mirrors the overall segment, with Bharti leading the
rural wireless segment and BSNL dominating the wireline market.
The density patterns are also varied across regions. States such as Punjab
and Tamil Nadu have a teledensity of over 80% whereas states such as
Chhattisgarh, Jharkhand and some parts of North East India have less than
10% teledensity.
The telecom sector is going through the growth stage of its life cycle, with
penetration in the rural areas and provision of broadband access
(presently at 99 million as in March 2015) as major areas of opportunity in
the near future. Until March 2006, the rural teledensity of the Indian
telecom sector was just 1.86% which has increased to 33.79% in March
2011 and further to 48% in 2015. In the next five years, all the major
telecom operators will be focusing on leveraging the opportunities that lie
thereabouts.

Some Significant Terms / Concepts / Agencies

* MTNL (Mahanagar Telephone Nigam Limited): is a government
owned telecom services provider (landline, mobile, wired and wireless
broadband, Fibre-to-the-home), catering to the metros of Mumbai and New
Delhi. It enjoyed a monopoly until 1992, when the sector was opened to
other Service Providers.
* Fibre-to-the-Home (FTTH): Incorporates voice, video and data highspeed broadband service (core network speed of 1 GB/sec). This network
caters to Triple Play services, which aim to provide one latencysensitive service (telephony) in addition to two bandwidth-intensive
services (broadband internet and television). Its focus is on enabling
supplier convergence single supplier providing multiple services (a
possibility of enhancing market share). Applications of FTTH services:
HD services, instant video conferencing and interactive gaming.
* VSNL (Videsh Sanchar Nigam Limited): Like MTNL, it was carved out
of the DoT to manage international long distance operations. (In 2002, Tata
Communications acquired a 45% stake in VSNL. VSNL was completely acquired
by the Tata Group and renamed as Tata Communications Limited on February 13,
2008.)

* BSNL (Bharat Sanchar Nigam Limited): This state-owned

corporation was carved out of the Dept of Telecommunication Services
(DTS) and Dept. of Telecom Operations (DTO) for providing telecom
services. It is the largest provider of land-line telephony, and also provides
mobile connectivity and broadband services.
Basic Terms
1G represented analog voice. Huge equipment
2G was digital = voice + text. Nice small phones with long battery life
(CDMA, GSM)
3G = voice + reasonably good data. Most smartphones (CDMA, WCDMA)
4G = broadband wireless data, with voice as VoIP. Really fast data
(LTE/WiMax)

* CDMA Vs GSM
CDMA (Code Division Multiple Access) and GSM (Global System for
Mobiles) are shorthand for the two major radio systems used in cell
phones.
Origin: In 1995 and 1996, CDMA was the newest, hottest, fastest
technology. It offered more capacity, better call quality and more potential
than the GSM of the day. GSM caught up, but by then those carriers' paths
were set. Even today, some CDMA players are big enough that they can
get custom phones built for them, so they don't see the need to waste
money switching 3G technologies when they could be building out their
4G networks.

Conditions of Use:
GSM: It's much easier to swap phones on GSM networks, because GSM
carriers put customer information on a removable SIM card. Take the card
out, put it in a different phone, and the new phone now has your number.
What's more, to be considered GSM, a carrier must accept any GSMcompliant phone. So the GSM carriers don't have total control of the
phone you're using.
CDMS: That's not the case with CDMA. In the U.S., CDMA carriers use
network-based white lists to verify their subscribers. That means you can
only switch phones with your carrier's permission, and a carrier doesn't
have to accept any particular phone onto its network.
With new technology developing, CDMA phones also carry SIM slots, but
that isn't because of CDMA. The SIM cards are generally there for 4G LTE
networks, because the LTE standard also uses SIM cards. The phones may
also have SIM slots to support foreign GSM networks as "world phones."
But those carriers still use CDMA to authenticate their phones on
their own home networks.

Tech premise: CDMA and GSM are both multiple access technologies.
They're ways for people to cram multiple phone calls or Internet
connections into one radio channel.
GSM: GSM came first. It's a "time division" system. Calls take turns. Your
voice is transformed into digital data, which is given a channel and a time
slot, so three calls on one channel look like this: 123123123123. On the
other end, the receiver listens only to the assigned time slot and pieces
the call back together.
The pulsing of the time division signal created the notorious "GSM buzz," a
buzzing sound whenever you put a GSM phone near a speaker. That's

mostly gone now, because 3G GSM (as I explain later) isn't a time division
technology.

CDMA: CDMA required a bit more processing power. It's a "code division"
system. Every call's data is encoded with a unique key, then the calls are
all transmitted at once; if you have calls 1, 2, and 3 in a channel, the
channel would just say 66666666. The receivers each have the unique key
to "divide" the combined signal into its individual calls.

Evolution:
GSM: Since its inception, GSM has evolved faster than CDMA.
However, code division, turned out to be a more powerful and flexible
technology, so 3G GSM is actually CDMA technology called WCDMA
(Wideband CDMA) or UMTS (Universal Mobile Telephone System).
Wideband implies that this requires wider channels than CDMA systems,
but has more data capacity. To further speed things up, the 3GPP (the
GSM governing body) released extensions called HSPA, which have sped
GSM networks up to as fast as 42Mbps, at least in theory. All 3G GSM
networks have simultaneous voice and data, because it's a required part
of the spec.
CDMA: CDMA networks, meanwhile, are stuck at 3.6Mbps. While faster
CDMA technologies exist, service providers are increasingly turning to 4G
LTE to be more compatible with global standards. 3G CDMA networks
(known as "EV-DO" or "Evolution Data Optimized") also, generally, can't
make voice calls and transmit data at the same time. Once more, that's
an available option (known as "SV-DO" for "Simultaneous Voice and Data
Optimization").
The Future is LTE:
The CDMA vs. GSM gap will close eventually as everyone moves to 4G LTE
(Long Term Evolution, which is the new globally accepted 4G wireless
standard), but that doesn't mean everyone's phones will be compatible
due to the use of different frequency bands, different 3G backup systems
and other variations which may not be compatible across all phones. Even
without CDMA, the CDMA philosophy of carrier control of your phone will
remain intact, thus restricting mobility as is the case today.
So what does all of this mean for you? If you want to switch
phones often, travel often, or use imported phones, just go with
GSM.

Miscellaneous Terms
Asynchronous Digital Subscriber Line (ADSL): refers to a standard
telephone line that is transformed into a broadband connection to
transmit large amounts of data by putting a splitter into the telephone
wall socket. It typically delivers fast download but slower upload speeds.
ADSL2+ is a faster version of this.
(Symmetrical Digital Subscriber Line (SDSL) works the same as ADSL
but with equal speed/bandwidth in both directions.)
Internet Protocol (IP): is the standard way of transporting information
across the internet in packets of data.
Integrated Services Digital Network (ISDN): is an international
communications standard for sending voice, video and data over normal,
copper telephone wires.
Public Switched Telephone Network (PSTN): refers to the standard
telephone service (remember the switch operators of yester-years). It is
mostly digital these days, apart from the final part from the local
exchange to a users phone where copper wires carry the analog voice
data.
Router: Either a device or computer software that directs IP packets to
the next point towards their destination.

Voice over Internet Protocol (VoIP): translates speech into data

packets for transmitting across the internet like any other file,
transforming it back to its usual form on arrival. Much cheaper than
traditional calls, communication can be carried out through any computer
or phone that can connect to the internet.
Session Initiation Protocol (SIP): allows worldwide free communication
between people using computers and mobile devices on the internet. It
harnesses VoIP technology and is most commonly used to start and finish
VoIP calls.
Virtual Private Network (VPN): is a way of creating a private
communications network on an otherwise public system such as the web,
using security including passwords and authentication to allow access.
Internet Protocol Television (IPTV): this facility enables customers to
watch television through the internet.
Voice and Video Over Internet Protocol (VVoIP): this service allows
consumers to make audio as well as video calls to any landline, mobile or

IP phone anywhere in the world, provided that the requisite video phone
equipment is available at both ends.
World-wide Interoperability for Microwave Access (WiMax):
sometimes referred to as WiFi on Steroids, it is a 4th Generation HighSpeed Wireless Broadband Access Technology designed for internet
speeds in the range of 30-40 Mbps (may go up to 1 Gb/sec). The focus of
this service is mainly rural customer where the wired broadband facility is
not available thus enabling, wireless last-mile connectivity in place of
infra-heavy cable and Digital Subscriber line (DSL).

Indias Telecom Sectors Telephony

The telephony segment is dominated by private-sector and two state-run
businesses. Most companies were formed post the reforms of 1991,
directed by the Ministry of Communications and IT, Department of
Telecommunications and the Ministry of Finance. Since then, most
companies gained 2G, 3G and 4G licences and engaged fixed-line, mobile
and internet business in India. Foreign Direct Investment policy has
increased the foreign ownership cap to 100%. The Government is working
to integrate the whole country in one telecom circle. Several international
fibre-optic links include those to Japan, South Korea, Hong Kong, Russia,
and Germany. Some major telecom operators in India include Airtel,
Vodafone, Idea, Aircel, MTNL, Reliance Communications, TATA Teleservices,
Infotel, MTS, Uninor, TATA DoCoMo, Videocon, Augere, Tikona Digital and
BSNL (the 7th largest telecom company in the world).
Fixed telephony
Until the New Telecom Policy was announced in 1999, only the
Government-owned BSNL and MTNL were allowed to provide land-line

phone services through copper wire in India with MTNL operating in Delhi
and Mumbai and BSNL servicing all other areas of the country. Due to the
rapid growth of the cellular phone industry in India, landlines are facing
stiff competition from cellular operators. This has forced land-line service
providers to become more efficient and improve their quality of service.
Land-line connections are now also available on demand, even in high
density urban areas. However, trends show that they are declining in
number.
Mobile telephony
The Mobile telecommunications system in India is the second largest in
the world and it was thrown open to private players in the 1990s. GSM
was comfortably maintaining its position as the dominant mobile
technology with 80% of the mobile subscriber market, but CDMA seemed
to have stabilised its market share at 20% for the time being.
The country is divided into multiple zones, called circles (roughly along
state boundaries). Government and several private players run local and
long distance telephone services. Competition has caused prices to drop
and calls across India are one of the cheapest in the world.
India primarily follows the GSM mobile system, in the 900 MHz band.
Recent operators also operate in the 1800 MHz band. The dominant
players are Airtel, Reliance Infocomm, Vodafone, Idea cellular and
BSNL/MTNL. There are many smaller players, with operations in only a few
states. International roaming agreements exist between most operators
and many foreign carriers.
Tele-density > 90% Delhi, Gujarat + Daman & Diu, Himachal Pradesh,
Karnataka, Kerala + Lakshwadeep, Maharashtra & Goa (including
Mumbai), Punjab and Tamil Nadu (including Chennai). (As of Sep 2014)
Tele-density < 60% Assam, Bihar + Jharkhand, Madhya Pradesh +
Chhattisgarh, Uttar Pradesh (East), Uttar Pradesh (West) + Uttarakhand.
(As of Sep 2014)
Indias Telecom Sectors Internet
The history of the Internet in India started with launch of services by VSNL
on 15 August 1995. They were able to add about 10,000 Internet users
within 6 months. But for the next 10 years, narrow-band connections
having speeds less than 56 kbit/s (dial-up) dogged business growth. In
2004, the government formulated its broadband policy which defined
broadband as "an always-on Internet connection with download speed of
256 kbit/s or above."
From 2005 onward the growth of the broadband sector in the country
accelerated, but remained below the growth estimates of the government

and related agencies due to resource issues in last-mile access which

were predominantly wired-line technologies.
This bottleneck was removed in 2010 when the government auctioned 3G
spectrum followed by an equally high profile auction of 4G spectrum that
set the scene for a competitive and invigorated wireless broadband
market. Now Internet access in India is provided by both public and
private companies using a variety of technologies and media including
dial-up, Ethernet, FTTH, 3G, WiFi, WiMAX, etc. at a wide range of speeds
and costs.
The internet base in India stood at just over 243 million, as of December
2014. The number of broadband subscribers at the end of March 2015 was
just over 99 million. DSL, while holding slightly more than 75% of the local
broadband market, is steadily losing market share to other non-DSL
broadband platforms, especially to wireless broadband.

There were 161 Internet Service Providers (ISPs) offering broadband

services in India as of 31 May 2013. The top five ISPs in terms subscriber
base were BSNL (9.96 million), Bharti Airtel (1.40 million), MTNL (1.09
million), Hathway (0.36 million) and You Broadband (0.31 million).

One of the major issues facing the Internet segment in India is the lower
average bandwidth of broadband connections compared to that of
developed countries. To compete with international standards of defining
broadband speed the Indian Government has taken the aggressive step of
proposing a $13 billion national broadband network to connect all cities,
towns and villages with a population of more than 500. The network is
supposed to provide speeds up to 10 Mbit/s in 63 metropolitan areas and
4 Mbit/s in an additional 352 cities.
Indias Internet penetration rate in India is one of the lowest in the world
and only accounts for 20% of the population compared to the rate in
OECD counties, where the average is over 50%.
Another issue is the digital divide where growth is biased in favour of
urban areas; according to 2010 statistics, more than 75 per cent of the
broadband connections in the country are in the top 30 cities. Regulators
have tried to boost the growth of broadband in rural areas by promoting
higher investment in rural infrastructure and establishing subsidized tariffs
for rural subscribers under the Universal service obligation scheme of the
Indian government.
As of May 2014, the Internet was delivered to India mainly by 9 different
undersea fibres, connecting Mumbai, Chennai and Cochin to South-East
Asia, South Africa (enroute to the Mediterranean) and the Middle-East.

Wireless Internet
2nd Generation Internet is the most prevalent in India. Wireless Internet
Service Providers (ISPs) in India use both CDMA and Edge technologies for
2G.
India's wireless Internet frequencies are:
2G : GSM 900 MHz, GSM 1800 MHz
3G : UMTS 2100 MHz
4G : TD-LTE 2300 MHz , FD-LTE 1800 MHz
Next Generation Network (NGN)
It is a packet-based network which offers unrestricted access by users to
different service providers.
The user can connect to the IP-core of NGN in various ways, most of which
use the standard Internet Protocol (IP).
User terminals such as mobile phones, personal digital assistants (PDAs)
and computers can register directly on NGN-core, even when they are
roaming in another network or country.
Fixed access (e.g., Digital Subscriber Line (DSL), cable modems, Ethernet),
mobile access (e.g. W-CDMA, CDMA2000, GSM, GPRS) and wireless access
(e.g. WLAN, WiMAX) are all supported.
Other phone systems like plain old telephone service and non-compatible
VoIP systems, are supported through gateways.
With the deployment of the NGN, users may subscribe to many
simultaneous access-providers providing telephony, internet or
entertainment services. This may provide end-users with virtually
unlimited options to choose between service providers for these services
in NGN environment.

Net Neutrality in India

As of 2015, India had no laws governing net neutrality and there have
been violations of net neutrality principles by some service providers.
While the Telecom Regulatory Authority of India (TRAI) guidelines for the
Unified Access Service license promote net neutrality, they are not
enforced. The Information Technology Act, 2000 does not prohibit
companies from throttling their service in accordance with their business
interests.[45]

In March 2015, the TRAI released a formal consultation paper on

Regulatory Framework for Over-the-top (OTT) services, seeking comments
from the public. The consultation paper was criticised for being one sided
and having confusing statements. It was condemned by various politicians
and internet users. By 18 April 2015, over 800,000 emails had been sent
to TRAI demanding net neutrality.

Indias Telecom Sectors Television

Television broadcasting began in India in 1959 by Doordarshan, a state
run medium of communication, which expanded slowly for more than two
decades. The policy reforms of the government in the 1990s attracted
private initiatives in this sector, and since then, satellite television has
increasingly shaped popular culture and Indian society.
However, only the government owned Doordarshan has the licence for
terrestrial television broadcast. Private companies reach the public using
satellite channels; both cable television as well as DTH has obtained a
wide subscriber base in India. In 2012, India had about 148 million TV
homes of which 126 million has access to cable and satellite services.
There are no regulations to control the ownership of satellite dish
antennas and also for operating cable television systems in India, which in
turn has aided in fast expansion of services. The growth in the number of
satellite channels was triggered by corporate business houses such as
Star TV group and Zee TV. Over the years, Doordarshan services also have
grown from a single national channel to six national and eleven regional
channels. Nonetheless, it has lost the leadership in market, though it
underwent many phases of modernization in order to contain tough
competition from private channels.
Today, television is the most penetrative media in India with industry
estimates indicating that there are over 554 million TV consumers, 462
million with satellite connections, compared to other forms of mass media
such as radio or internet. Government of India has used the popularity of

TV and radio among rural people for the implementation of many socialprogrammes including that of mass-education.
On 16 November 2006, the Government of India released the community
radio policy which allowed agricultural centres, educational institutions
and civil society organisations to apply for community based FM
broadcasting licence. Community Radio is allowed 100 watts of Effective
Radiated Power (ERP) with a maximum tower height of 30 metres. The
licence is valid for five years and one organisation can only get one
licence, which is non-transferable and to be used for community
development purposes.