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MBA Review Magazine:
Telecom Industry : Caught in a Spectrum Crunch
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Though India has attained the status of one of the world's biggest telecom providers, the quality of mobile lines still depicts a gloomy picture. Its unbalanced spectrum allocation policies and messy planning have acted as an obstacle to wireless telecom services.

 
 
 

Giving spectrum preference to new players over incumbents will lead to increasingly fragmented spectrum allocation, which might result in a long-term spectrum crisis. Indian telecom industry is the fourth largest market in Asia after China, Japan and South Korea. Telecom network is the eighth largest in the world and the second largest among emerging economies. Currently, the sector revenue to GDP is 2.1% as compared with over 2.8% in developed economies. The country adds nearly eight million mobile phone users each month. The mobile operators are targeting relatively untapped rural areas and small towns for their future expansion.

Over the years, the sector has undergone a major process of transformation through policy reforms. The policy initiatives and participation of private players resulted in better quality and lower tariffs. Though India attained the status of world's one of the biggest telecom providers, the quality of mobile lines still depicts a gloomy picture. Despite massive investments over the past decade, the sector is still struggling with inadequate infrastructure, which is resulting in poor voice quality, dropped calls, undelivered messages, and at the end harassed customers. Moreover, mobile operators are paying more attention on to increase their customer base than improving the network performance.

As a result, most of the mobile operators have fallen short on their performance parameters like network quality, billing, customer care and value-added services. At the same time, the players are unwilling to be blamed for their customers' unhappiness. According to them, telecom customers are unhappy, not because of telecom companies have not been paying enough attention to their network performance but country's unbalanced spectrum (the radio frequencies that enable mobile communications) allocation policies and messy planning have acted as drawbacks to wireless telecom services.

 
 
 

MBA Review Magazine, Indian Telecom Industry, Gross Domostic Products, GDP, Global System for Mobile communication, GSM, Telecom Regulatory Authority of India's, spectrum crisis, wireless digital communications system, Spectrum Allocation Policies.