The predominant role of telecom sector in the rapid social and economic development has been recognized in India as well as all over world.

Also the telecom sector in India has under gone a series of changes and institutional reforms since 1991 and consequently the new Telecom policy has laid down the basic framework for the future development and growth of Telecom sector in the country. The Government of India put forward the New Telecom policy in the year 1999, the main provisions o the policy are followings:

(i) Breaking the monopoly of DOT.

(ii) Making possible the payment of a onetime entry fee followed by a revenue sharing agreement for all future licenses in basic cellular, cable and radio paging. But all these to be recommended by the TRAI.

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(iii) Recongnising new technologies in market in recent years and to follow cellular and fixed service provide to carry long distance traffic within service area without seeking an additional licence.

(iv) Emphasized on need for efficient economical and optimal spectrum management in view of an ever-growing demand for spectrum capacity.

(v) It has given adjudicatory powers to the Telecom Regulatory Authority of India (TRAI), to resolve disputes.

(vi) Strengthening research and development efforts in the country and to enable Indian telecom companies to become global players.

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(vii) This policy also made the entry of MTNL into cellular mobile service.