The Indian telecom sector, with a subscriber base of 1.2 billion, is rapidly evolving and embracing new technologies such as Artificial Intelligence (AI) and moving towards pioneering 6G advancements. The sector has witnessed remarkable growth, with average monthly wireless data usage per user reaching 21.30 GB by October 2024. According to the Cellular Operators Association of India (COAI), the deployment of over 4,60,592 5G BTS sites has led to the increase in 5G user numbers to over 125 million, with projections estimating a rise to 350 million by 2026. Fixed Wireless Access (FWA), a key 5G use case, has also seen rapid adoption with nearly 3 million connections within a year.
The Indian telecom sector is a significant contributor to India’s GDP and provides employment to over 4 million people. Over 55 per cent of Technology, Media, and Telecommunications (TMT) companies in India have fully integrated AI, with another 37 per cent in a scaling phase, according to KPMG India. The government’s Bharat 6G Vision initiative aims to secure 10 per cent of global 6G patents and is actively fostering research through funding for advanced testbeds and evaluating proposals to accelerate ecosystem development in the sector.
Despite these milestones, the telecom industry in India faces significant challenges. Large Traffic Generators (LTGs) strain networks, leading Telecom Service Providers (TSPs) to invest Rs10,000 crore in 2023. The lack of LTG contributions has resulted in a loss of Rs800 crore in AGR dues and taxes for the Indian exchequer. The industry body, COAI, has also raised concerns about unregulated OTT communication platforms, which they claim create disparities as TSPs adhere to strict security norms. Enforcing traceability and privacy rules for OTT services is essential to ensure fairness in the sector.
The allocation of the 6 GHz spectrum band, vital for 5G, and addressing concerns over unauthorized Wi-Fi 6E routers sold online are pressing issues that need immediate resolution. Infrastructure constraints, right of way (RoW) challenges, and spectrum interference hinder network rollouts, with newly proposed Quality of Service (QoS) norms viewed as impractical by TSPs. While TSPs comply with TRAI’s directives to curb spam, extending Unsolicited Commercial Communication (UCC) regulations to OTT services is crucial to address the root cause of pesky calls and messages.
Government initiatives such as abolishing the Wireless Operating License (WOL) and waving bank guarantee requirements for deferred spectrum payments since 2012 have helped alleviate financial burdens in the sector. Additionally, the Supreme Court’s ruling on tax credits for telecom tower components has provided significant relief to TSPs. COAI advocates for transparent spectrum auctions to integrate Device to Machine (D2M) with telecom networks, opposing the creation of standalone broadcasting networks. The telecom sector in India is poised for further growth and innovation, with the adoption of AI and advancements towards 6G technology leading the way for future developments.
