Liberalization of the Telecommunications Industry
The regulatory framework of the telecommunications industry changed radically during the past decade in almost all OECD countries, particularly after 1996-97. As technological innovation made competition increasingly possible in the long-distance and international telephony markets, policy makers sought to liberalise the access of new entrants. New independent regulatory agencies were established with a mandate to open markets to competition, prevent incumbents from abusing their position and avoid collusion between operators. Following these decisions, telecommunications markets became more competitive (Figure 1). Other actions were undertaken to liberalise the industry, including number portability and carrier pre-selection. In addition, progress was made towards the privatisation of state owned operators.
Introduction of Global Line Prepaid Calling Card
There was a surge in the number of mobile users in Switzerland and By November 1997 one million subscribers had already registered; in other words one in seven Swiss residents uses a mobile phone. After carefully analysing both the Fix & Mobile market users Mr. Ranjit Singh Masuta has an early starter launched a Prepaid Calling Card services by the name of GLOBAL LINE partnering with a Swiss company called Cyber Office which was based in Zurich, Switzerland. This Prepaid Calling Card Services had a ten digit Pin number with 0800 and local access number. This calling card product was launched in the 3rd quarter of 1997 and it was made available in many retail outlets, Super Markets, Gas Stations, Kiosks & call shops & PTTs.
Participation at ITU TELECOM Interactive 97
In 1997, the International Telecommunications Union (ITU) based in Geneva, Switzerland held the ITU Exhibition which was called "TELECOM Interactive 97".
The event took place from September 8 to 14, 1997. It was described as the "world's first interactive multimedia forum and exhibition".
D.M Enterprises of Switzerland had the opportunity to directly register with ITU and participate in the Forums & Exhibition. This was an eye opener for us by meeting various companies and innovative people to explore more on the Telecommunications related subjects.
A key focus was the Internet and its relationship with the telecommunications industry. The ITU published a report to coincide with the exhibition titled Challenges to the Network: Telecoms and the
Internet 1997. There were 215 exhibitors from sectors including telecommunications, computing, broadcasting, and entertainment. The event attracted 20,000 plus telecommunications professionals.
In addition to corporate and national pavilions, the exhibition included a cybercafé and a cyber-forum for discussions.
Telecommunications Liberalization in Switzerland
European regulations required that the liberalization of the national Telecommunications market in most European countries completed on 1 January 1998.
In Switzerland the end of the PTT monopoly process began with the Telecommunications Enterprise Act of 1997, which fully deregulated the Swiss market for telecommunications. This legislation dissolved the PTT, the state-owned Postal, Telephone, and Telegraph services that had existed since 1920.
Effective January 1, 1998, the PTT was officially split into two separate, state-owned companies Swisscom Ltd-The new, publicly limited telecommunications company that would operate in the liberalized market and Swiss Post-The separate institution responsible for postal and financial services.
Switzerland's mobile phone network was digitized under the name NATEL D in 1992, and by 1997, digital GSM service was widespread. This provided a foundation for the significant growth that followed deregulation.
Expansion of Global Line International
In 1998 Global Line International Prepaid Calling Card brand became a recognized product within the cosmopolitan people, tourist and locals due to its success in Switzerland and post liberalization of telecommunications market in EU the expansion of this calling card product was available by deploying the latest state of the art calling card switching technology and infrastructure within the tele-houses based in France, Germany, Italy, Switzerland and in the UK. The Tele-House Colocation & Interconnections services were provided by Colt Europe and New Telco Germany. The Brand name "Global LINE" Prepaid Calling Card was marketed under the registered company name Global Line GmbH within Switzerland. The identical business model was created by incorporating the companies in Austria, Belgium, France, Germany, Greece, Italy, Portugal, Spain, UK and also by signing sales & purchase agreements with third party retail outlets to distribute the brand across Europe.