IDEAS home Printed from https://ideas.repec.org/p/ags/uitcoe/15859.html
   My bibliography  Save this paper

The Liberalization of India's Telecommunications Sector: Implications for Trade and Investment

Author

Listed:
  • Greene, William

Abstract

India's telecommunication sector has undergone a spectacular transformation during the last decade emerging from a highly regulated, stat-owned monopoly to a moderately competitive fairly deregulated sector. Today, India possesses the world's fifth largest public sector telecommunications network and Asia's third larges, behind only China and South Korea. India's telecommunications sector continues to grow at a rapid pace and government officials, regardless of party, acknowledge that India needs a modern telecommunications network to sustain high levels of economic growth and create the proper environment for its IT sector to grow and prosper. Given its size and population, India possesses one of the most under penetrated and least developed telecommunications services markets in the world. India's fixed-line service sector has suffered from decades of under investment, the absence of competition, government protection, and monopoly. Much of the country's telecommunications infrastructure is archaic by international standards and the introduction of new technologies has rendered it obsolete. By the late 1980s, recurring fiscal deficits and negative balances of payments encourage the Indian government to initiate an economic reforms ended the government's monopoly over telecommunications services and in the manufacture of telecommunications equipment and opened the sector to private sector participation and foreign investment. Many of the world's leading multinational telecommunications firms have been drawn to India because of its enormous market potential. The opening of the telecommunications sector created one of the fastest growing and hottest markets for equipment and services in the world. Today vendors from the United States and other countries dominate India's $12.3 billion annual equipment market. To meet the ambitious goals set by the government in the National Telecom Policy of 1994 and 1999, India will need to install approximately 250 million telephones by 2010 at a cost of $106 billion. Most of the funds needed for the expansion are expected to come from the United States and other foreign investors.

Suggested Citation

  • Greene, William, 2004. "The Liberalization of India's Telecommunications Sector: Implications for Trade and Investment," Working Papers 15859, United States International Trade Commission, Office of Economics.
  • Handle: RePEc:ags:uitcoe:15859
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/15859
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kees Jan Van Garderen & Chandra Shah, 2002. "Exact interpretation of dummy variables in semilogarithmic equations," Econometrics Journal, Royal Economic Society, vol. 5(1), pages 149-159, June.
    2. repec:wsi:wschap:9789812701350_0019 is not listed on IDEAS
    3. Soamiely Andriamananjara & Michael Ferrantino & Marinos Tsigas, 2005. "Alternative Approaches In Estimating The Economic Effects Of Non-Tariff Measures: Results From Newly Quantified Measures," World Scientific Book Chapters,in: Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 19, pages 525-540 World Scientific Publishing Co. Pte. Ltd..
    4. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    5. Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
    6. Spinanger, Dean & Francois, Joseph F. & Glismann, Hans H., 2000. "The Cost of EU Trade Protection in Textiles and Clothing," Kiel Working Papers 997, Kiel Institute for the World Economy (IfW).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uitcoe:15859. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/itcgvus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.