Home | ARTS | Business Environment and Law | Communications- Infrastructure Of The Economy

Business Environment and Law-Infrastructure Of The Economy

Communications- Infrastructure Of The Economy

   Posted On :  04.05.2018 06:19 am

The communication system comprises posts and telegraphs, telecommunication systems, broadcasting, television and information services.

The communication system comprises posts and telegraphs, telecommunication systems, broadcasting, television and information services. By providing necessary information about the markets and also supplying necessary motivation, the communication system helps to bring buyers and sellers together effectively and helps to accelerate the growth of the economy. Accordingly, the modern communication system has become an integral part of the development process.

Importance Of Communication

With the development of science and technology, the need for the importance of communication is felt and consequently the social behaviour of human mankind is also transformed to a larger extent. The pressure of work and other social and personal commitments keep people in tight schedules leaving no time for casual talk or gossiping in private life. Whereas, in business circles, stiff competition of trade, liberal import of goods, development of new businesses by foreign corporate houses, indigenous giants, NRI’s investment, easy availability of bank loans, heavy transactions in the stock market, etc., Make business people to keep track of the development worldwide in order to keep abreast of business
information on hourly basis. It involves interpretation of communication between people continuously which in turn results into refined decision-making of the business people.
In the modern professional organizations a great deal of importance is attached to devising and maintaining an efficient system of communication. Research shows that 70% to 80% of the total working time of professional and top ranking officials of corporate offices is spent on communication. In india, out of total time spent on communication, 64.14% Is on communicating in english as against 27.22% In hindi and 8.64% In regional languages. Thus the role of english in business communication is predominant and it continues to be in the first place always.

Communication performs a number of functions and plays a major role in an organization.

Internal Communication


External Communication

Postal System In India

Since 1950-51, the postal network has been expanded throughout the country, and in recent years, with special emphasis on the rural, hilly and remote tribal areas. The postal department has given a new thrust to its programme of modernisation for providing new value added services to customers. This includes:
            A programme of computerised services of such postal operations as mail processing, savings of bank and material management
            Introduction of metro channel service linking 6 metros
            Introduction of raidhani channel linking delhi with most of the state capitals and
            A business channel with exclusive treatment to pin coded business mail
In recent years, there has been a healthy growth in many lines of postal activity, such as speed post traffic, postal life insurance, extensive of postal life insurance and post office savings banks to rural areas, etc.

Indian Telegraphs

Indian telegraph is one of the oldest government-owned public utility organisations in the world. A number of telegraph offices has been increased from 8,200 in 1951 to over 30,000 now. All these facilities: the phonogram service for sending and receiving telegram by telephone, telex service to send and receive printed message directly from one centre to another, the tremendous expansion of telephone facilities and direct trunk dialing – are available to the general public.


Telecommunication is a vital input for global competition and for india’s success in the international markets. It is important not only because of its role in bringing the benefits of communication to every corner of india but also in serving the new policy objectives of improving the global competitiveness of the indian economy and stimulating and attracting foreign direct investment. There has been phenomenal growth in the telecommunication sector after 1995.
There has been a shift in importance towards the private sector and towards wireless telephony with falling tariff rates for cellular phones. There has also been a phenomenal increase in the number of cellular subscribers. Cellular telephony has become the most preferred mode of communication among the indian public.

Strengths, Weaknesses And Remedies Of Telecommunication



            Huge potential for expansion
            Rapid growth in the last couple of years with annual growth of 13 % between 1984 and 1994 and 20 % thereafter.
            Relatively high density with 7.97 Phones per 100 towns people ahead of china and indonesia
            High technology – 66 % of exchanges are digital


            Waiting period to get new connections
            Poor maintenance 218 faults for 100 lines every year
            Privatisation efforts are not successful



            Accelerate the clearance process for private sector entry into basic telecom services
            Offer incentives to private telecom companies for meeting connection and low-fault targets
            Resolve disputes between private operators and the DOT over long distance connections immediately
            Convert the DOT into a holding corporation, with its subsidiaries operating services in different circles
            Replace the indian telegraph act, 1885 with a new act incorporating the impact of technology changes.

Recent Developments In Telecom Sector

            Large number of villages are now covered through wireless in local loop (WLL)
            The national internet backbone (NIB) was commissioned
            Since long distance (national and international) has been opened up to competition, long distance tariffs have come down.
            To enhance telecom services in rural and remote areas, the telecom department has issued guidelines for implementing universal service obligation (USO)
            According to the new telecom policy every village in india is expected to be provided with one public telephone.


Tags : Business Environment and Law-Infrastructure Of The Economy
Last 30 days 238 views