ABSTRACT
The role of policy in shaping the development of India’s telecommunications switching industry has historically been the target of a fierce debate – one that has escalated even more since economic liberalization in 1991. Economic liberalization in India has certainly helped to realize, through the medium of the transnational corporations (TNC), a much greater level of efficiency in the telecommunications sector. The chapter examines the comparative behaviour of TNC-affiliates and local enterprises in relation to the industry environment, to determine how nationality influences firm behaviour. In terms of direct canvassing of products, the TNCs invariably managed to penetrate higher echelons of decision makers in the ministry, and canvass through influencers down the line. The telecom TNC-affiliates have upgraded the telecom infrastructure, improved availability of telephones, introduced value added services, and facilitated inflow of foreign exchange. Economic liberalisation in India has certainly helped to realise a much greater level of efficiency in advanced telecommunications hardware through TNCs.
