Digital Infrastructure

Telecom Sector in India

Introduction

Over the past two decades, the Indian telecom sector has undergone a remarkable transformation. What was once considered a luxury is now a necessity that connects more than a billion people. Today, India’s telecommunications industry is the second largest in the world, contributing around 6% to the national GDP. Its growth story is marked by affordability, accessibility, and rapid technological adoption.

Evolution and Growth of the Telecom Sector

From Scarcity to Connectivity

• At the turn of the millennium, seamless connectivity was beyond the reach of most Indians. In 2001, there were only 3.5 telephone connections per 100 people, making communication exclusive to a few. By 2024, telecom density had surged to 85.6%, reflecting near-universal access.

Expansion in Data Usage and Infrastructure

• The sector has revolutionized internet access. Data costs plummeted to just ₹8.31 per GB in 2024, making India one of the cheapest data markets globally. Average monthly data consumption per wireless user jumped to 21.3 GB by mid-2024, a 353-fold increase since 2014. Supporting this surge, the number of mobile base stations grew to 29.4 lakh, while the sector attracted FDI inflows of USD 670 million in 2024-25.

5G Rollout

• India has achieved one of the world’s fastest 5G rollouts, significantly improving connectivity and efficiency across districts. This reflects the sector’s proactive approach to infrastructure expansion and innovation.

Major Telecom Reforms

The Telecommunication Act, 2023

• Replacing outdated colonial-era laws, the new Act introduces a modern regulatory framework for spectrum assignment, user protection, Right of Way (RoW), and promotion of innovation through initiatives like Digital Bharat Nidhi and Regulatory Sandboxes.

Digital Portals and Simplified Compliance

• The GatiShakti Sanchar portal streamlines RoW approvals, reducing bureaucratic delays and enabling the installation of over 3.23 lakh towers and optical fibre permissions. Through the National Master Plan, the Department of Telecommunications is addressing 4G saturation in uncovered villages.

Public Protection and Early Warning Systems

• The government is implementing Pan-India Cell Broadcasting (CB) to deliver emergency alerts, already covering nearly 80% of the telecom network.

Towards 6G Leadership

• With the Bharat 6G Vision (launched in 2023) and the Bharat 6G Alliance, India aims to emerge as a global leader in 6G technology by 2030, focusing on R&D, standardisation, and ecosystem building.

Expanding Public Wi-Fi

• The PM-WANI scheme (2020) enables local entrepreneurs to set up Wi-Fi hotspots, especially in rural areas, promoting affordable internet and supporting the National Digital Communications Policy, 2018.

Impact of the Telecom Revolution

Bridging Social Divides

• Affordable services and low-cost smartphones have narrowed the digital gap, empowering people across socio-economic classes.

Digital India Vision

• The telecom revolution underpins the Digital India initiative, which rests on four pillars: affordable devices, nationwide connectivity, accessible data, and digital-first governance.

Boosting Digital Economy

• The rise of digital payments has been extraordinary, with UPI transactions rising from 92 crore in 2017-18 to 8,375 crore in 2022-23. The sector also played a vital role during the Covid-19 pandemic by supporting remote work and online education.

Challenges Facing the Telecom Sector

• Infrastructure Gaps: Persistent rural-urban divide due to difficult terrain, poor power supply, and low returns on investment.
• Spectrum Pricing: High costs affect financial stability and delay adoption of new technologies like 5G.
• Quality of Service: Issues like call drops and poor network quality continue to affect customer satisfaction.
• Regulatory Complexities: Frequent policy changes and multiple levies create uncertainty for operators.

Way Forward

Strengthening Infrastructure

• Focused investment in rural connectivity, satellite communication, and renewable energy solutions to bridge the rural-urban gap.

Rationalising Spectrum Pricing

• A transparent and flexible pricing system, coupled with spectrum sharing and trading, to reduce financial burdens on operators.

Enhancing Quality and User Experience

• Strict service benchmarks, customer-centric policies, and efficient grievance redressal to ensure consumer satisfaction.

Stable and Predictable Regulation

• Long-term, consistent policy frameworks aligned with global standards to encourage investment and innovation.