Introduction
The initial step towards private sector participation in the Indian telecom sector began in 1994 with the introduction of cellular licenses. This was a time when India was opening up its economy and telecommunications was a key area requiring massive investment, which the Department of Telecommunications (DoT) alone could not manage. To address the increasing demand for telephone services, the government introduced policies to bring private players into the market. The foundational policy that set the stage for these changes was the National Telecom Policy (NTP) of 1994.
NTP-1994 had a clear objective: to make telecommunication services available to all at affordable prices. However, the way these early licenses were structured laid the foundation for several issues that would plague the sector for years to come. This part will dive into the specifics of the initial cellular licenses, their structure, and the challenges that arose from those early decisions.
