The Economic Survey for 2004-05 tabled in Parliament on Friday presented a bright picture for the telecom sector and asked the government to maintain pro-competitive policy encouraging entry of new players and lower tariffs to push up tele-density.

"The most striking success is visible in telecom. While tele-density has risen dramatically, India continues to lag far behind countries like Brazil and China where the tele-density is more than 40 per cent. In order to 'catch up', there is need to maintain vigorous pro-competitive efforts in terms of public policy," the Survey, tabled by Finance Minister P Chidambaram, said.

Economic Survey 2004-05: Complete Coverage

Envisaging a stronger role for telecom regulator TRAI for establishing pro-competitive policies, it said the policy must push for rapid shifting to new technologies, encourage entry of new players and drive down prices through competition.

"The policy initiatives taken in the telecom sector recently address some of these issues and looking forward, the sector would feature lively competition among private firms," the Survey said.

It also called for bringing out a fresh policy on spectrum with a limited role of the government on the utilisation of this scarce natural resource.