Question : GROWTH IN TELECOMMUNICATION SECTOR



(a) whether there has been a tremendous growth in the telecommunication sector in recent years;

(b) if so, the details thereof during the last three years;

(c) whether the indigenous manufacturing industry has not been adequately encouraged despite growth in telecommunication sector; and

(d) if so, the reasons therefor and the action taken by the Government in this regard?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (DR. SHAKEEL AHMAD)

(a) Yes, Sir.

(b) The number of telephone connections in the country have become more than double during the last three years. Year-wise details of growth in telephone connections and tele-density are as follows:



Telephone connections Growth Tele-density (in Percentage) (in lakhs) (per 100 population) As on 31.3.2001 362.9 - 3.53 As on 31.3.2002 449.7 23.9 4.29 As on 31.3.2003 546.2 21.5 5.11 As on 31.3.2004 765.4 40.1 7.02


(c) & (d)Several measures were taken to encourage indigenous manufacturing of telecom equipments. The industry has been given many incentives such as benefit under central sales tax, modified EHTP (Electronic Hardware Technology Park) Scheme, rationalisation of custom duty and exemption of excise duty on manufacturing of mobile handsets to encourage the manufacturing industry to grow in tune with the growth of telecom service sector.