India's 21.59 million-line telephone network is one of the largest in the world and the 3rd largest among emerging economies (after China and Republic of Korea). Given the low telephone penetration rate - 2.2 per 100 people of population, which is much below the global average, India offers vast scope for growth. It is therefore not surprising that India has one of the fastest growing telecommunication systems in the world with system size (total connections) growing at an average of more than 20 percent over the last 4 years.

The industry is considered as having the highest potential for investment in India. The growth in demand for telecom services in India is not limited to basic telephone services. India has witnessed rapid growth in cellular, radio paging, value-added services, internet and global mobile communication by satellite (GMPCS) services. This is expected to soar in the next few years.

Recognizing that the telecom sector is one of the prime movers of the economy, the Government's regulatory and policy initiatives have also been directed towards establishing a world class telecommunications infrastructure in India. The telecom sector in India therefore offers an ideal environment for investment.

The telecommunications initiative in the country is lead by Ministry of Communications through the Department of Telecommunication & Department Telecom Services and its undertakings for provision of basic telephone services, national and international long distance communications, manufacture of complete range of telecom equipment, research and development, and consultancy services. The Telecom Commission performs the Executive and Policy making functions. The Telecom Regulatory Authority of India performs the functions of an independent regulatory body.