The document discusses the rate war in India's telecom sector. It provides background on major telecom service providers in India. It then summarizes some of the schemes providers offer to attract customers, including very low call rates. While customers benefit from low rates and special offers, this intense competition has negatively impacted service providers through lower profits and the need for highly skilled management to navigate the competitive market.

1. Rate War In Telecom Sector in India Submitted by: Pallavi Syal Ritesh Goyal P. Sonika

3. INTRODUCTION India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian telecom network is the eighth largest in the world and the second largest among emerging economies. At current levels, telecom intensiveness of Indian economy measured as the ratio of telecom revenues to GDP is 2.1 percent as compared with over 2.8 percent in developed economies. Indian telecom sector has undergone a major process of transformation through significant policy reforms. The reforms began in 1980s with telecom equipment manufacturing being opened for private sector and were later followed by National Telecom Policy (NTP) in 1994 and NTP'1999. Historically, the telecom network in India was owned and managed by the Government considering it to be a natural monopoly and strategic service, best under state's control. However, in 1990's, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector.

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