Introduction:

Information has become a strategic resource as important as land, labour and capital.
Therefore, open trade in telecommunication services can provide many advantages such as
more competition, more employment, lower prices for most businesses and for many
consumers and provides both with a choice of different service providers which gives pace to
the economic growth of the country. Previously bilateral relations between nations were used
to take place as joint provision of international services which makes trade relations “inter-
national” instead of international. But now trade relations have changed from one-to-one
relations to a world of many-to-many as trade in telecommunication equipment and services
now takes place in a multilateral environment in which the majority of trade relationships
include multiple intermediaries between buyer and seller. For many telecommunication users,
the transition to a multilateral trading system will bring benefits in terms of greater choice and
lower prices.

Telecommunications trade has soared during the past two decades. From the conclusions
carried out at World Trade Organization, the trade in telecommunications fits well into the
framework of the General Agreement on Trade in Services (GATS). GATS virtually extend
internationally and comprises of the much more than US$ 600 billion telecommunication
service sector. International telecommunication services were traded under a system of
bilateral agreements between nations.

Data:

Data has been collected mainly from the secondary source such as journals and websites.

Indo-Canadian Bilateral Trade Relations:

Over the past few years, India and Canada have entered into dialogue and embarked on
initiatives for economic cooperation. The official visits of high-level delegations from both
countries have resulted in a review of their bilateral economic relations and a discussion of
important international and regional issues, including initiatives that would strengthen their
partnership. One element of such a partnership envisages cooperation in the field of science
and technology in general, and telecom technology in particular.

The policy agendas of both India and Canada rest on the premise of seeking strategic partners
that can appropriately help build and further their economic future through the development
of the skills of their people and corporations. The environment created by India’s persisting
market liberalization and prioritized infrastructure development initiatives have provided an
improved setting for the Canadian private sector to compete in an increasingly dynamic
market. Thus, against the backdrop of the commonality of their commitment to democracy,
rule of law, and similarities in legal, financial and political systems, the presence of a vibrant
Indo-Canadian community in Canada providing entrepreneurial skills and scientific and
educational links would help both countries enhance their efforts to cultivate meaningful
linkages in all sectors, including science and technology.

Translating their intention into action, India and Canada agreed, in 2003, to accord “priority to
an enhanced policy dialogue and strengthened bilateral cooperation in science and
technology, research and development, and the environment.”15 Following this commitment,
the Canadian government has taken steps in supporting science and technology partnerships
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 between Canadian firms and research institutes and their counterparts in other countries,
including India.

A joint communiqué issued by the Prime Ministers of both countries clearly expressed their
determined stand to enhance the architecture of the Canada-India partnership by concluding
an intergovernmental Science and Technology (S&T) arrangement and encouraging strategic
collaborations in selected areas of science and industrial technologies under what is known as
the Science and Technology Initiative. Canada provided funding not only “to expand science
and technology links and international R&D teamwork, but [also] bridging the gap between
domestic innovation and international commercialization [through] effort and collaboration
across the government.”

Legal Environment:

Annexure – I
Regulatory Bodies in Telecom Sector:

In India
Department of Telecommunications (DOT) DOT is responsible for formulating
developmental policies for the accelerated
growth of the telecommunication services,
granting of licenses for various telecom services
like Unified Access Service Internet and VSAT
service, frequency management in the field of
radio communication in close coordination with
the international bodies and enforcing wireless
regulatory measures by monitoring wireless
transmission of all users in the country.

Related Legislations:
- Indian Telegraph Act 1885
- Indian Wireless Act 1933
- Cable Television Network Networks
(Regulation) Act, 1995
- Telecom Regulatory Authority of India
(TRAI) Act 1997
- Information Technology Act 2000
- TRAI (Amendment) Act, 2000
- Communication Convergence Bill 2001
- Indian Telegraph (Amendment ) Rules,2004
- Indian Telegraph (Amendment ) Rules,2007
- Indian Telegraph (Amendment ) Rules,2008

In Canada
The Canadian Radio-television and The main functions of CRTC are to regulate the
Telecommunications Commission (CRTC) broadcast distributors, internet and telephone
services.

Related Legislations:
- Accurate News and Information Act
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 - Bell Canada Act
- Broadcasting Act, 1991
- Canadian Radio-television and
Telecommunications Commission Act
- Public Broadcasting Act of 1967 - USA
- Telecommunications Act

Sources:
http://www.dot.gov.in/,http://en.wikipedia.org/wiki/Canadian_Radiotelevision_and_Te
lecommunications_Commission

Economic Environment:

In India:

The economy of India is the eleventh largest economy in the world by nominal GDP and the
fourth largest by purchasing power parity (PPP). India is an emerging economic power with a
very large pool of human and natural resources, and a growing large pool of skilled
professionals. The size of the middle-class population stands at 300 million and represents a
growing consumer market. During 2007, India accounted for 1.5% of World trade according
to the WTO. Economists predict that by 2020, India will be among the leading economies of
the world.

India's large service industry accounts for 57.2% of the country's GDP while the industrial
and agricultural sector contribute 28% and 14.6% respectively. Agriculture accounts for about
52% of employment. The service sector makes up a further 34% and industrial sector around
14%. Major industries of India include telecommunications, textiles, chemicals, food
processing, steel, transportation equipment, cement, mining, petroleum, machinery,
information technology enabled services and pharmaceuticals.

As the fourth-largest economy in the world in PPP terms, India is a preferred destination for
foreign direct investments (FDI); India has strengths in telecommunication, information
technology and other significant areas such as auto components, chemicals, apparels,
pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI policies
resulted in a significant hindrance. However, due to some positive economic reforms aimed at
deregulating the economy and stimulating foreign investment, India has positioned itself as
one of the front-runners of the rapidly growing Asia Pacific Region.

During 2000-10, the country attracted $121 billion as FDI. The inordinately high investment
from Mauritius is due to routing of international funds through the country given significant
capital gains tax advantages; double taxation is avoided due to a tax treaty between India and
Mauritius, and Mauritius is a capital gains tax haven, effectively creating a zero-taxation FDI
channel.

India's recently liberalized FDI policy (2010) allows up to a 100% FDI stake in ventures. As
per the new FDI Policy, 2010, up to 74% of FDI Cap/Equity is allowed in India where
automatic route is allowed up to 49% and Government route beyond 49% and up to 74%.

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Industrial policy reforms have substantially reduced industrial licensing requirements,
removed restrictions on expansion and facilitated easy access to foreign technology and
foreign direct investment FDI. The upward moving growth curve of the real-estate sector
owes some credit to a booming economy and liberalized FDI regime. A critical factor in
determining India's continued economic growth and realizing the potential to be an economic
superpower is going to depend on how the government can create incentives for FDI flow
across a large number of sectors in India.

Annexure – II
Foreign direct investment in India:

Share of top five investing countries in FDI inflows. (2000–2010)

Inflows
Rank Country Inflows (%)
(million USD)
1 Mauritius 50,164 42.00
2 Singapore 11,275 9.00
3 USA 8,914 7.00
4 UK 6,158 5.00
5 Netherlands 4,968 4.00

Source: http://en.wikipedia.org/wiki/Economy_of_India

In Canada:

Canada is the ninth largest economy in the world (measured in US dollars at market exchange
rates), is one of the world's wealthiest nations, and is a member of the Organization for
Economic Co-operation and Development (OECD). As with other developed nations, the
Canadian economy is dominated by the service industry, which employs about three quarters
of Canadians. Canada is unusual among developed countries in the importance of the primary
sector, with the logging and oil industries being two of Canada's most important. Canada also
has a sizable manufacturing sector, centered in Central Canada, with the automobile industry
especially important.

Canada has one of the highest levels of economic freedom in the world. Today Canada
closely resembles the U.S. in its market-oriented economic system, and pattern of production.
As of June 2010, Canada's national unemployment rate stood at 8.1% as the economy
continues its recovery from the effects of the 2007-2010 global financial crises.

The service sector in Canada is vast and multifaceted, employing some three quarters of
Canadians and accounting for over two thirds of GDP. The largest employer is the retail
sector, employing almost 12% of Canadians. The second largest portion of the service sector
is the business services, employing only a slightly smaller percentage of the population. This
includes the financial services, real estate, and communications industries. This portion of the
economy has been rapidly growing in recent years. It is largely concentrated in the major
urban centres, especially Toronto, Montreal and Vancouver. The health care industry has been
rapidly growing, and is the third largest in Canada. Its rapid growth has led to problems for
governments who must find money to fund it. Canada has an important high tech industry,

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and also an entertainment industry creating content both for local and international
consumption. Tourism is of ever increasing importance, with the vast majority of international
visitors coming from the United States. Though the recent strength of the Canadian Dollar has
hurt this sector, other nations such as China have increased tourism to Canada.

Canada is negotiating bilateral FTAs with Ukraine , Morocco , India , South Korea ,
Dominican Republic , Singapore , Andean Community (Negotiations have already concluded
with Peru and Colombia) , CARICOM (Caribbean Community) , European Union

Technological Environment:

Liberalization and technological progress are bringing down prices and boosting trade in
telecommunication services. Opening up the competitive segments of the telecommunications
industry to new entrants, together with huge technological progress, have brought about lower
telecommunications charges.

A major recent technological development is the convergence of services: voice, data and
broadcasting content can now be delivered to the same platforms and different technologies
are capable of delivering the same content. For example, a mobile handset can receive voice
calls, data, pictures, audio, video and text and, similarly, content can be accessed using a
satellite connection, cable, digital terrestrial and analogue terrestrial platforms, as well as
through a fixed broadband connection or over a mobile network.

Possible Technological development areas:

- Ensuring efficient internet connection.
- Accounting for network externalities.
- Lowering switching costs.
- Managing spectrum efficiently.
- Regulating multiproduct telecom firms.
- Providing universal services.
- Mobile broadband.
- Roaming tariffs and its regulations.
- Intelligent SIM cards – over the air programming.
- Roaming over Wi-Fi.

Space technologies are of more importance when it comes to discussing about

telecommunications technology. Canada has developed very highly advanced technology in
the field of earth observation (remote sensing), and also has access to the International Space
Station (ISS) for microgravity and other research purposes, it is lacking in the area of
indigenous launch services. India, on the other hand, has been able to develop and continually
advance an array of indigenous launch vehicles and is currently able to offer world-class
reliable and cost effective launch services. India has also developed a very high level of
expertise in the processing and distribution of remote sensing data.

There are several regulatory and policy obstacles that will hinder any efforts toward bilateral
space cooperation. Although most of these regulatory and policy barriers are on the Canadian
side, and may even involve international obligations assumed by Canada toward third party
states. So areas under development in the space technology are as follows:

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 - Remote sensing (earth observation)
- Microgravity research
- Space launch (transportation) services

Sources:
http://www.dot.gov.in/
http://www.trai.gov.in/
http://en.wikipedia.org/wiki/TRAI

http://en.wikipedia.org/wiki/Canadian_Radio-
television_and_Telecommunications_Commission

http://en.wikipedia.org/wiki/Economy_of_Canada

http://en.wikipedia.org/wiki/Economy_of_India

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