The Indian Telecom Revolution | Gist of Rajya Sabha TV / RSTV (now Sansad TV) - UPSC PDF Download

Why in News? 

The Indian telecom sector has undergone significant growth and increased competition over the past two decades. 

• Currently, India boasts the second-largest telecommunications sector in the world, serving over a billion people and contributing 6% to the country's Gross Domestic Product (GDP). 

What is the Current State of the Telecom Sector in India? 

The Transformation of India's Telecom Sector

• The Indian telecom sector has evolved from being a luxury to an essential service, showcasing the country's progress in connectivity and affordability.
• 2000: Seamless connectivity was a luxury accessible to only a few.
• 2001: Telephone penetration was just 3.5 connections per 100 people, making phone calls inaccessible for many.
• 2024: Telecom density improved to 85.6%, significantly enhancing accessibility and connectivity.
• This transformation demonstrates how the telecom sector has reshaped lives by making seamless communication available to all.

Growth in Data Consumption and Infrastructure Development

• The Indian telecom sector has made significant strides in wireless data usage and infrastructure development, furthering its impact on accessibility and affordability.
• Wireless Data Costs: The cost of wireless data plummeted to ₹8.31 per GB in 2024, a drastic reduction since 2014.
• Data Consumption: By June 2024, average monthly data consumption per wireless subscriber reached 21.30 GB, marking a 353-fold increase.
• Mobile Base Stations: As of November 2024, the number of mobile base stations reached 29.4 lakh, indicating robust infrastructure growth.
• Foreign Direct Investment (FDI): The sector attracted FDI worth 670 million USD in 2024-25, showcasing a significant increase compared to previous years.

Rapid 5G Rollout

• India’s telecom sector is making remarkable progress with a focus on nationwide 5G rollout and saturation.
• Fastest 5G Rollout: India has achieved one of the fastest 5G rollouts, covering a vast number of districts and strengthening network connections.
• Proactive Leadership: The sector’s proactive approach to infrastructure enhancement has been crucial in driving this transformation, enhancing overall efficiency.

Network Readiness Index (NRI) 2024:

• India has improved its position in the Network Readiness Index, climbing 11 positions to rank 49th in 2024, up from 60th in 2023.
• This improvement reflects a significant advancement in India's digital infrastructure and capabilities.

Global Cyber Security Index 2024:

• India has achieved Tier 1 status in the Global Cybersecurity Index (GCI) 2024, published by the International Telecommunication Union (ITU).
• This milestone indicates India's enhanced capabilities in cybersecurity and reflects a strong commitment to digital security.

What are the Various Telecom Reforms in India? 

Telecommunication Act, 2023:

• Introduction of the Telecommunication Act, 2023, aimed at modernizing and streamlining telecom sector regulation.
• Replaces outdated laws from the colonial era, such as the Telegraph Act of 1885 and the India Wireless Telegraph Act of 1933.
• Simplifies the framework for authorisation and spectrum assignment, ensuring optimal utilisation.
• Establishes an effective Right of Way (RoW) framework and strengthens provisions for national security and public emergency.
• Promotes innovation and technology development through initiatives like Digital Bharat Nidhi and Regulatory Sandboxes.
• Ensures user protection and introduces a two-tier Adjudication Mechanism with voluntary undertakings.

RoW Portal:

• The GatiShakti Sanchar portal has been launched to facilitate Right of Way (RoW) applications across all States/UTs and major Central ministries.
• The portal aims to reduce bureaucratic hurdles by ensuring transparent processes for applications, minimizing paperwork, and expediting disposal times.
• Since its inception, the portal has significantly increased the approval rate for Towers and Optical Fiber Cable permissions, with a total of 3.23 lakh approvals.

Gati Shakti Sanchar Portal of National Master Plan:

• The Department of Telecommunication (DoT) is utilising the National Master Plan (NMP) to plan the 4G Saturation project in uncovered villages and identify habitations lacking adequate 4G coverage.

Reducing Compliance Burden:

• The government has launched an initiative to reduce the compliance burden with the aim of achieving Ease of Living and Ease of Doing Business.
• This involves simplifying interfaces between the government and citizens/businesses for various services.

Pan-India Cell Broadcasting (CB):

• The Department of Telecommunications (DoT), in collaboration with multiple ministries, is implementing a Pan-India Cell Broadcasting (CB) system to enhance public protection through targeted early warning alerts.
• This system, currently covering nearly 80% of the network, is crucial for disseminating emergency alerts to the public.

Bharat 6G Vision and Bharat 6G Alliance (B6GA):

• The Bharat 6G Vision was launched by the Prime Minister in March 2023, aiming to position India as a global leader in the design, development, and deployment of 6G technology by 2030.
• The Bharat 6G Alliance (B6GA) is a collaborative platform that involves academia, industry, and government to foster a comprehensive 6G ecosystem in India, focusing on research, development, and standardisation of 6G technology.

Prime Minister Wi-Fi Access Network Interface (PM-WANI):

• Launched in 2020 by the Department of Telecom (DoT), PM-WANI aims to expand public Wi-Fi hotspots across India, particularly in rural areas.
• The framework allows local businesses, such as shopkeepers, to set up Wi-Fi hotspots, providing affordable internet access and supporting the goals of the National Digital Communications Policy, 2018.

How Has the Indian Telecom Revolution Impacted the Nation? 

Bridging the Gap Between Rich and Poor: The telecom revolution has been instrumental in narrowing the gap between different economic classes.

• Affordable services, widespread connectivity, and low-cost smartphones have made digital resources accessible to people from all segments of society.
• The Vision of Digital India: The Digital India initiative was introduced with a holistic and comprehensive approach, aiming to ensure that the benefits of digital transformation reach every corner of the country. Unlike fragmented efforts, this vision focuses on integrated strategies to achieve nationwide digital inclusion.
• Four Pillars of the Digital India Vision: To realise the ambitious goals of the Digital India initiative, four key pillars were identified:
• Reducing Device Costs: Making digital devices affordable so that people from all economic backgrounds can access technology.
• Ensuring Nationwide Connectivity: Expanding infrastructure to connect even the most remote areas.
• Making Data Accessible to All: Lowering data costs and ensuring reliable internet services to bridge the digital divide.
• Adopting a Digital-First Strategy: Encouraging a mindset that prioritises digital solutions for governance, education, and commerce.
• Rise of Digital Payments: The surge in digital payments has become a key driver for telecom growth.
• Unified Payments Interface (UPI) transactions have grown from 92 crore in FY 2017-18 to 8,375 crore in FY 2022-23.
• Remote Work and Education: The Covid-19 pandemic accelerated the adoption of remote work and online education, becoming an unexpected growth driver for the telecom sector.

What are the Challenges Related to the Telecom Sector? 

• Infrastructure Gaps: Despite significant progress, India's telecom infrastructure still faces a substantial urban-rural divide. The challenges in rural areas include difficult terrain, lack of consistent power supply, and lower return on investment.
• Spectrum Pricing: High spectrum prices have been a significant hurdle for Indian telecom operators. This issue not only affects the financial health of telecom companies but also potentially slows down the adoption of new technologies like 5G, impacting India's digital transformation journey.
• Quality of Service: Despite improvements, quality of service remains a persistent issue in India's telecom sector. Poor service quality leads to customer dissatisfaction and churn, impacting operator revenues.
• Regulatory Challenges: The telecom sector in India grapples with a complex and sometimes unpredictable regulatory environment. Issues like frequent policy changes and multiple levies (license fees, spectrum usage charges, etc.) create operational uncertainties.

Way Forward

Bridging Infrastructure Gaps:

• Focused investments in rural infrastructure to reduce the urban-rural divide, with incentives for telecom companies to deploy networks in underserved areas.
• Adoption of innovative technologies like satellite-based communication and renewable energy solutions to address issues of difficult terrain and inconsistent power supply.
• Collaboration between the government and private players to create a robust and inclusive telecom ecosystem.

Rationalising Spectrum Pricing:

• Implementing a fair and transparent spectrum pricing mechanism to ease financial pressure on telecom operators.
• Offering flexible payment terms and discounts for spectrum acquisition, especially for emerging technologies like 5G.
• Encouraging spectrum sharing and trading to optimize its utilization and reduce costs.

Improving Quality of Service:

• Introducing stringent quality benchmarks and monitoring mechanisms to ensure compliance by operators.
• Promoting customer-centric policies and resolving complaints efficiently to enhance user satisfaction.

Streamlining Regulatory Framework:

• Introducing stable and predictable policy frameworks to encourage long-term investments.
• Enhancing collaboration between stakeholders through consultations to align policies with industry needs and global standards.