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Telecom Sector

The telecom sector in India has experienced rapid growth in recent years due to various policy reforms that opened the sector to private players and foreign investment. To benefit from the growing market, telecom companies need to implement innovative human resource practices to attract, retain, and develop talent. The government has taken steps like allowing foreign direct investment to boost the sector's growth. While previously state-run, the telecom industry is now highly competitive with both public and private companies vying for customers in the rapidly expanding mobile and services segments.

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38 views

Telecom Sector

The telecom sector in India has experienced rapid growth in recent years due to various policy reforms that opened the sector to private players and foreign investment. To benefit from the growing market, telecom companies need to implement innovative human resource practices to attract, retain, and develop talent. The government has taken steps like allowing foreign direct investment to boost the sector's growth. While previously state-run, the telecom industry is now highly competitive with both public and private companies vying for customers in the rapidly expanding mobile and services segments.

Uploaded by

85rids
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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TELECOM SECTOR

Telecom sector of India has experienced tremendous growth in recent years. To


benefit from growing market, telecom companies require right people for the right job.
To attract, retain and add to share holder value innovative Human Resource
Management practices are required to be implemented.

We are living in an era where the business world has become a village and the business
organizations are facing cut throat competition from around the globe. One of a source
of competitive advantage for any business is its human resources (Becker & Huselid,
1998). In today’s knowledge organizations (telecom service provider are good example
of such organizations), where value is locked in the heads of the work force, best HR
practices only can ensure continued success of business organizations. In developing
economies like ours, best Human Resource practices are a recent phenomenon.

5.0 Telecom Sector in India


India is fast emerging as the Telecom hub of the world both in terms of the growing
demand, size of the market, setti ng up of the manufacturing facilities in India by
leading players across the world and, the inflow of FDI, which is currently the highest
in all the sectors of Indian industry. The Indian telecom market can be divided into
three segments: the mobile (wireless) market, manufacturing segment and value-
added services segment. Every day, new drivers and advancements are revolutionizing
and fuelling the growth of the sector. Right from the telegraphic and telephonic
systems in the 19th century, the scope of telephonic communication has now
expanded to make use of advanced technologies (in mobile phones) like GSM, CDMA,
and WLL to the great 3G Technology launched in 2007, and is increasing at a
tremendous rate.

The government of India has also come forward and has taken various initiatives to
boost the growth of the sector. Opening the sector to FDI has encouraged and
attracted heavy investment from major players across the world to enter the Indian
markets. The manufacturing segment of the telecom sector has also started flourishing
with Nokia, LG, Motorola, Samsung and many other players setti ng up its
manufacturing facilities in India.

The Indian telecom sector is witnessing great competition. MTNL, BSNL, VSNL are the
major Public Players, whereas Airtel, Idea, Vodafone, Tata, Reliance, BPL are the
leading Private Players in the country. The consumer is emerging as the clear winner in
this competition where the players in the mobile segment are coming up with new
tariffs and discount schemes to gain the competitive advantage.

Telecommunications in India is a fast changing industry with major changes in


government policies and market structure taking place in the past decade. As on March
2007, the total numbers of mobile subscribers had increased to over 217 million, from
54.5 million in March 2003. The wired line subscriber base stood at 40.1 million on
March 2007 compared to 41.5 million in March 2003. The tele-density was at 18.2 on
March 31, 2007 as against 5.1 in the March 2003.
Historically, the telecom network in India was owned and managed by the government.
Considering it to be a natural monopoly and strategic service, it was perceived to be
best managed under state’s control. However, in 1990’s, driven by rapid changes in
telecom technology and deregulation in many other countries, led Indian policy makers
to initiate a change process finally resulting in opening up of telecom services sector
for the private sector.

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 a new telecom policy in 1999- NTP 99.
Subsequent to NTP 99, a number of policy measures (implementation of calling party
pays, removing oversight from urban tariffs, migration framework for a Unified Access
License, allowing for greater flexibility in service provision to service providers) have
led to growth outlined above.

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