Significant Policy Milestones in India's Digital Evolution (1851-2018).
| Author | Asrani, Chavi |
Introduction
Information and Communications Technology (ICT), has drastically improved connectivity, and amalgamated in most aspects of modern human life; it is now regarded as a general-purpose technology (Liao et al., 2016). ICT facilitates poverty reduction and advances economic growth (Qiang et al., 2009; Kim et al., 2021). India currently accounts for world's second largest pool of wireless subscribers. The National Digital Communications Policy (NDCP) 2018 discusses to accord communications infrastructure critical status at par with other connectivity infrastructure such as roadways, railways, waterways and airlines (DoT, 2018c). The policy and regulatory framework in India have facilitated growth of communications sector in its current form today, India's tele-density grew from about 2% in the year 2000 to presently about 87%, but there remain vast differences in ICT access across sectors and states (TRAI, 2022). This study provides an abridgement of significant policy milestones since the introduction of telecommunications in India in the year 1851 until the lately approved NDCP 2018.
Pre-independence: Telecommunication Legacy
India's telecommunications operations commenced in 1851 with the introduction of telegraph services (Sridhar, 2011). The first submarine telegraph cable from United Kingdom was installed in Bombay (now Mumbai) in 1870, thereby opening external communications in the sub-continent. The British Indian Government granted permission to Oriental Telephone Company Limited to establish telephone exchanges in India and exchanges were started in Calcutta, Madras, and Bombay in 1882 (BSNL, 2012). Later the colonial government passed a resolution outlining state's monopoly in telephone systems, following which telephone service was bundled with telegram service by 1884 (Mann, 2010). Next, the colonial government enforced the Indian Telegraph Act 1885, according state the power to establish telecommunications lines on private and public properties (DoT, n.d.a). This colonial Act, after various significant amendments is still upheld in India.
In 1927 high-frequency radiotelegraph was initiated in India, followed by the introduction of radiotelephony in 1933 (Mann, 2010). The Indian Wireless Telegraphy Act, instituting the license system to regulate the state monopoly was also enforced in 1933 (DoT, n.d.b). After the 12th amendment of this Act in 2003, it was stipulated that the Central Government may determine the license fee after considering the recommendation of Telecom Regulatory Authority of India (TRAI) (Ministry of Law and Justice, 2004).
As the British ruling class considered telephones as a means for domestic communications, the telephone lines were deployed only for administrative and military control. An inquest of the British India telephone network spread, indicates that the requirements of the colonial government's control determined the communications system's progress (Mann, 2010). During the year 1943 the telephone system was nationalized, and telephone services initiated by the private companies taken over by the government (Mann, 2010).
Monopoly by the Government
After Independence, the Government of India (GoI) took control of the telephone network which connected 82,000 subscribers through 321 switching exchanges (Mann, 2010). India founded its first public sector unit, Indian Telephone Industries (ITI) Limited in 1948, as a manufacturer of telecommunications equipment (ITI Limited, 2018). Subsequently, commercial production of strowger switching equipment started in 1949 (Mani, 1989). In 1959, the government appointed the Telephone Switching Systems Committee, which recommended manufacturing of new superior switching equipment called crossbar. In 1964, ITI started manufacturing the crossbar switch of Penta-conta design, but as India's telephone density was low and usage high (due to sharing of telephones), the Penta-conta design crossbar switches were not suitable. Consequently, GoI formed India Crossbar Project Group in 1974, which redesigned local and trunk automatic exchanges, which were commissioned into service during 1978 and 1980 (Mani, 1989).
In 1978, the Ministry of Communications incorporated Telecommunications Consultants India Limited (TCIL) as a telecommunications consultancy and engineering company to provide telecom expertise in India and overseas (TCIL, 2018). Over the years TCIL has diversified into various areas including cyber parks and cities, intelligent buildings, and up-gradation of legacy networks (DoT, 2017a). To better India's telephone services, Sarin Committee on Telecommunications recommended switching over to digital electronic switching systems during 1981 (Mani, 1989). The sector witnessed pre-liberalization impetus in late 1980s with network expansion and structural reorganization. In 1984, GoI instituted Centre for Development of Telematics (C-DOT) to promote research and development in telecommunications sector, envisioning to develop capabilities coherent with the country's usage pattern (C-DoT, 2010). By the end of 1980s the switching system in India comprised our switches--manual, strowger, crossbar and electronic (Mani, 1989).
During the Seventh Five Year Plan (FYP), India's telecommunications sector advanced with the unbundling of the Department of Post and Telegraph in 1985 into Department of Posts and the Department of Telecommunications (DoT) under Ministry of Communication. DoT administers planning, engineering, installation, maintenance and operations of entire telecommunications services in India. In 1986, Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were incorporated under DoT (NCAER et al., 2012). MTNL provided telecom services in Delhi and Mumbai; while VSNL took over from the 'Overseas Communications Services' to provide for India's international telecommunications, and DoT provisioned services in regions other than Delhi and Mumbai (TATA Communication, 2018).
In April 1986, DoT initiated 'Mission Better Communications,' which was later renamed as 'National Mission on Telecommunications' and brought within the ambit of 'Technology Missions' of the Eighth FYP. The mission under the headship of Sam Pitroda introduced modern digital technology and computerization of the telecom network aiming to improve accessibility and quality of service (QoS) (M.B., 1989). Private players started entering the industry during 1980s offering telecom equipment, subsequently franchises for Subscriber Trunk Dialing, International Subscriber Dialing and Public Call Office also grew.
During 1986, Education and Research Network (ERNET) project virtually brought Internet in to India. The dialup network proj ect was initiated by the Department of Electronics, with funding from the GoI and United Nations Development Program. This project created a network, to provide facility for Indian research community and build-up India's competencies in networking (ERNET, 2018). In 1989, GoI instituted Telecom Commission with executive and financial powers to administer various aspects of the sector (DoT, 2017).
Until 1991, India's communications sector was monopolized by the government, and industry was a small-sized market, getting access to services was difficult and QoS poor. The sluggish growth of telecommunications was reflected in the growing waiting list for connections that stood at 1.31 million lines by the year end 1988, which was about 34% of the total working connections (Mann, 2010). One of the reasons for grim performance of the sector was low investment. The share of telecommunication investments in gross fixed capital formation was about 1.3% during 19711987, and the national plan outlay till the seventh FYP was just over 2% (Mani, 1989).
Post Liberalization
Appreciating the potential of telecommunications in contributing to economic development, the Eighth FYP made telecom access an essential element in planning (GoI, 1992). Private participation was encouraged and manufacturing of telecom equipment was decentralized. Telecom services were classified into basic telephony, radio paging, and cellular mobile. Specific value-added services such as radio paging, e-mail, voice mail, audio and video text services were initiated in 1992 (Medudula et al., 2016). Licensing process for cellular-mobile ser vices in the four metro cities (Delhi, Mumbai, Kolkata, and Chennai) was embarked in 1992 following a duopoly market approach and Global System for Mobile (GSM) was the mandated technology (Sridhar, 2011).
The announcement of National Telecom Policy (NTP) -1994, emphasized on providing telephone on demand, improving service quality, and extending services in rural sector. NTP-1994 visioned to establish India as a manufacturing hub and an exporter for telecom equipment, and endorsed for private participation in the sector (DoT, 2016). Increased private participation provided funds for network expansion, relinquishing the state monopoly that caused low supply, high prices for telecom services. However, during 1995 only two operators were allowed per License Service Area (LSA)
The GoI held the first commercial communications spectrum auction in 1995, subsequently second-generation (2G) services were initiated, and industry grew exponentially (Prasad et al., 2008). India's tele-density grew from 0.69% in 1991-92 to 1.9% in 1997, but the wireline waitlist continued to rise during the late 1990's (NCAER et al., 2012). With increased private participation, sector needed a regulator, and in February,1997, TRAI was established to regulate telecom services, including fixation of tariff rates (DoT, 2018).
On August 15th, 1995 VSNL launched India's first public Internet service; but service quality was low, and subscriptions grew slowly (Sridhar, 2011). To improve Internet uptake, Gol issued Internet Service Provider (ISP) licenses to private enterprises in 1998 (TRAI, 2008). There was no ISP license fee required...
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