|
Based on substantive debates on the benefits of change in governance in many key
infrastructure sectors, the Indian government decided a decade ago to embark on
economic reforms, a main plank of which is to privatise many key sectors.
It was envisaged that this reform programme would unlock many potential benefits
of competition, such as efficiency gains in firms,
which would be subsequently passed on to consumers as reduced prices.
A key to the success of these reforms is the setting up of appropriate regulatory
authorities.
The outcome of research at the Centre for Infrastructure and Regulation at
NCAER has been the recognition that competition is an effective tool for creating an environment
in which network industries can both operate efficiently and increase penetration and
usage of the system.
The growth of the Indian telecommunications sector supports this conclusion.
|
