Telecom Sector in India

The Indian Telecom Sector has played a crucial role in driving economic growth by enhancing connectivity and transforming social interactions. India has emerged as the world’s second-largest telecommunications market, witnessing significant expansion over the past decade. The Telecom Regulatory Authority of India (TRAI) has been instrumental in shaping the sector’s regulatory framework to sustain this progress.

During the financial year 2022-23, the total telecom subscriber base reached 1,172.34 million, reflecting a growth from 1,166.93 million. The wireless subscriber count stood at 1,143.93 million, with a marginal increase of 1.84 million, while the wireline subscriber base saw a notable 14.37% rise, reaching 28.41 million. The country’s internet subscriber base grew to 881.255 million, up from 824.888 million, and broadband subscribers increased to 846.569 million from 788.295 million.

TRAI undertook several key regulatory and policy initiatives to address industry challenges and promote growth. These included recommendations on the auction of 5G spectrum, a regulatory framework for the data economy, the use of street furniture for small cell deployment, and a licensing framework for Satellite Earth Station Gateways (SESG). Additionally, TRAI focused on improving telecom infrastructure in remote areas such as Himachal Pradesh, allocating spectrum for the National Capital Region Transport Corporation (NCRTC), and introducing a rating system for digital connectivity in buildings and areas.

Recognizing the growing significance of emerging technologies, TRAI organized a workshop on the Metaverse in September 2022. The event explored the potential of technologies such as Blockchain, AR/VR, AI, and IoT, while also discussing policy frameworks, privacy and safety concerns, and the future of digital interoperability.

Overall, India's telecom sector continues to witness steady growth, supported by proactive regulatory measures and advancements in next-generation technologies like 5G and the Metaverse. These efforts ensure a robust connectivity infrastructure, fostering economic development and technological innovation.

The government has fast-tracked reforms in the telecom sector .Some of the other major initiatives taken by the government for growth for telecom companies are as follows:

• The Ministry of Communications & Information Technology has launched Twitter Sewa, an online communications platform for registration and resolution of user complaints in the telecommunications and postal sectors.

• The Telecom Regulatory Authority of India (TRAI) has released a consultation paper which aims to offer consumers free Internet services within the net neutrality framework and has proposed three models for free data delivery to customers without violating the regulations.

• The Government of India has liberalised the payment terms for spectrum auctions by allowing two options of payments to telecom companies for acquiring the right to use spectrum, which include upfront payment and payment in installments.

• The Department of Telecommunications (DoT) has amended the Unified Licence for telecom operations which will allow sharing of active telecom infrastructure like antenna, feeder cable and transmission systems between operators, thereby lowering the costs of operations and leading to faster rollout of networks.

• The Telecom Regulatory Authority of India (TRAI) has recommended a Public-Private Partnership (PPP) model for BharatNet, the central government’s ambitious project to set up a broadband network in rural India, and has also envisaged central and state governments to become the main clients in this project.

• The Ministry of Skill Development and Entrepreneurship (MSDE) signed a Memorandum of Understanding (MoU) with Department of Telecommunication (DoT) to develop and implement National Action Plan for Skill Development in Telecom Sector, with an objective of fulfilling skilled manpower requirement and providing employment and entrepreneurship opportunities in the sector.

• The Telecom Regulatory Authority of India (TRAI) has directed the telecom companies or mobile operators to compensate the consumers in the event of dropped calls with a view to reduce the increasing number of dropped calls.