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PREPARED By

PROFESSIONAL TEAM & AdvOcates oF

Telecom Sector In
India
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Introduction

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Partners

International Legal
Consultants,

Advocates & IPR

Attorneys

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Introduction
 Telecommunications services are a global market
worth over US$ 1.5 trillion in revenue
With a growth rate of
45%, Indian telecom industry has the highest
growth rate in the world
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Historical Background
o Section 2 (1)k TRAI Act
 service of any description (including
electronic mail, voice mail, data services,
audio text services, video text services,
radio paging and cellular mobile
telephone services) which is made
available to users by means of any
transmission or reception of signs,
signals, writing, images and sounds or
intelligence of any nature, by wire,
radio, visual or other electro-magnetic
means

Pre-independence
Till 1990
New Economic Policy
 Steady Growth
Mobile revolution
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II
Legal and Regulatory Framework
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Telecommunication Laws
Indian Telegraph Act, Indian Wirele
1885 ss Act, 1933
 • Power to the Central • Main objective to regula
Government regarding possession of wireless ap
establishing, maintaining and
working telegraphs
• Supplementary to the Te

• Granting of license
• Prohibits any person fro
possessing wireless teleg
• Special power in public interest apparatus except under
accordance with a licens
under this Act
• 2004 Amendment: Universal
Service Obligation

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Telecommunication Laws
Telecom Regulatory Authority of India Act, 1997
TelecomRegulatory Telecom Disputes Se
Appellate Tribunal
Authority of India
• Amendment in 2000
• Primary regulatory entity

• To adjudicate disputes an
• Composition: 1 Chairman, 2
whole appeals
time members, 2 part time • Between a between a licen
members
licensee; between two or mor
• Functions
providers between a service p
Recommendation to
government and a group of consumers.

Enforce compliance
Investigation and issuing
directions

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Governmental Policies
o National Telecom Policies
 1994 and 1999
  Broad policy guidelines
 Aims: over all development

o Unified Access Licensing

 Unification and streamlining

of licensing system

o Broadband Policy, 2004

o Cable and Broadcasting Services

 Considered

under telecom services since

2004
 Conditional Access System

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III
 Present Scenario
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Mergers and Acquisitions

o Significant driver of M & A
Activity in India
o $5.7 billion and $11 billion in
2008 and 2007
o Reasons
 Improving market access

 Spectrum Scarcity

 Recurring costs on technology

DoT Guidelines on Merger

 • Intra-circle Consolidation

• Merger for specific categories of

licenses

• At least 3 service provider after

the merger

• Consolidation leading to market

monopoly prohibited

• Approval of DoT must

• Spectrum Restrictions

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Foreign Investment
o Attractive avenue for foreign
investment since 1990.
 o 20.7% growth, revenues of Rs.1,
57,542 crore in 2008-09.
o Reasons
 Fastest growing sector

 Recurring costs on technology

DoT Guidelines on Foreign

Participation
• Amendment in the existing
licenses

• Maximum foreign participation

limit- 74%
• Disclosure of status of foreign
holding and certification that he
maximum limit is adhered on six-
monthly basis.

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Foreign Investment: FDI
Policy
o Basic Framework
 Maximum limit- 74 %

(including indirect
investment)
 49% automatic route
 Licensing requirements

o Security Requirements
 Some officers and majority of

directors to be Indians
 Restriction on transfer of

information outside India

 Secured transmission

o 100 % FDI in E-commerce

activities
 Including OSP like BPO, Call

centers, tele-marketing etc.

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Other Emerging Areas

o Infrastructure Sharing
 enhancing the spread of

network coverage in a
geographically vast country as
India
 helps in reducing the risk

factors for
the telecom companies
 DoT Guidelines

 sharing will be limited to

antenna, feeder cable,

node B, and radio access
network and transmission
system only
 do not permit the sharing

of spectrum among the

service providers
 o Emerging Technologies
 Advent of 3G Technology in

India

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Legal Services
for Telecom Sector
o LEGAL advice pertaining to the licensing and
regulatory requirements concerning the
various telecommunication services.

o LEGAL assistance in drafting and approval

of license agreements for
differenttelecom services.

o HANDLING matters concerning foreign

investments in telecom sectors and
compliance to the statutory requirements.

o SERVICES regarding the corporate

restructuring and consolidation procedures
 and requirements in telecom sectors
particularly guiding on merger of licenses.

o DISPUTE resolution regarding

telecommunications services before TDSAT.

o ADVISING on the changes and modifications

in the existing telecom regime and
emerging issues like infrastructure sharing,
new telecom technologies.

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Reach Us

MARS & Partners

International Legal
Consultants,
Advocates and IPR
Attorney
 A-415, Defence Colony, New Delhi-110 024,
INDIA
Tel.: + 91-11- 4652 5466 / 77 / 88, Fax: + 91-11-
4652 5455
Email: info@marsandpartners.com
Website: www.marsandpartners.com

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