The full form of TRAI is the Telecom Regulatory Authority of India. The entry of private service providers brought with it the inevitable need for independent regulation. The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government. TRAI's mission is to create and nurture conditions for the growth of telecommunications in the country in a manner and at a pace that will enable India to play a leading role in an emerging global information society. One of the main objectives of TRAI is to provide a fair and transparent policy environment that promotes a level playing field and facilitates fair competition. In pursuance of the above objective, TRAI has issued from time to time a large number of regulations, orders, and directives to deal with issues coming before it and provided the required direction to the evolution of the Indian telecom market from a Government-owned monopoly to a multi-operator multi-service open competitive market. Thus, option 2 is the correct answer.