tele.net recalls some of the most crucial events that helped shape the sector over the past 25 years. These events ushered in reforms, created key institutions, paved the way for private participation, presented new business opportunities as well as challenges, and changed the course of the sector to bring it to where it is today…
Corporatisation of BSNL (2000)
Based on the reference made in the New Telecom Policy (NTP), 1999, the services arm of the Department of Telecommunications (DoT) was hived off and corporatised as Bharat Sanchar Nigam Limited (BSNL) in October 2000. The telecom PSU has been providing telecom services across the country, except in Delhi and Mumbai.
Privatisation of the NLD and ILD segments (2000, 2002)
With the aim of driving private investments and competition in the national long distance (NLD) market, the government decided to open up the segment to the private sector. The idea was to increase long-distance bandwidth capacity and provide a choice to consumers. Later, in 2002, the government allowed the entry of private players into the international long distance (ILD) market as well.
Establishment of the USO Fund (2002)
The Universal Service Obligation (USO) Fund was established in 2002 (renamed Digital Bharat Nidhi in 2024) with the objective of providing telecom access to people in rural areas. The fund is maintained through operators’ contributions by way of a universal service levy, fixed at 5 per cent of the adjusted gross revenue (AGR).
Introduction of the CPP regime (2003)
The calling party pays (CPP) regime was introduced under the IUC regulation in January 2003. This regime was perhaps the single biggest driver of telecom growth in the country. Under the regime, incoming mobile-to-mobile and fixed line to mobile calls were made free of charge. Later, in 2003, the TRAI superseded this regulation with a new one, wherein identical termination charges were levied for all types of calls.
Launch of Project MOST (2006)
To encourage tower sharing among operators and bring down costs, the ministries of urban affairs and communications initiated Project Mobile Operator Shared Towers (MOST) and introduced a master service agreement to facilitate sharing.
Auction of 3G and BWA spectrum (2010)
The process of auctioning 3G and broadband wireless access (BWA) spectrum was kicked off in April 2010 and concluded in late May, after 34 days and 183 rounds of aggressive bidding across 22 service areas. The 3G spectrum auctions had operators bidding in excess of Rs 160 billion for a pan-Indian licence. The high price surpassed all expectations, including those of the government, which raked in Rs 677.1 billion from the sale. In the end, seven operators won 3G spectrum.
Launch of MNP (2011)
Mobile number portability (MNP), which allows users to switch operators without having to change their mobile numbers, was launched on a pan-Indian basis on January 20, 2011. Making it easier for consumers to move between operators, it was one of the most critical reforms in the sector.
Roll-out of NOFN/BharatNet (2011)
The National Optical Fibre Network (NOFN) project was launched in October 2011 with the aim of providing broadband connectivity to villages. It was renamed BharatNet in 2015 and its scope expanded to connect 250,000 gram panchayats with fibre broadband connectivity. The project is being implemented by BBNL under BSNL and funded by the USO Fund.
Cancellation of 2G licences (2012)
In February 2012, the Supreme Court delivered a landmark judgment on the 2G case, cancelling 122 telecom licences that were controversially issued in 2008. The verdict impacted new and incumbent players alike. Among the new players, Uninor, Sistema Shyam TeleServices Limited, S Tel, Etisalat Videocon Telecommunications and Loop Telecom collectively lost 106 licences, while Idea Cellular and Tata Teleservices Limited lost 13 and 3 licences respectively.
Introduction of unified licence guidelines (2013)
In late 2013, DoT issued the unified licence guidelines to simplify the licensing regime, in sync with the objectives of NTP 2012. The guidelines allowed for voluntary migration of telcos to the new licensing regime. Service providers with BWA spectrum were allowed to offer voice telephony services through a unified licence after paying Rs 16.58 billion.
Launch of Digital India (2015)
The launch of the Digital India programme in July 2015 was a key step forward in the effort to transform the country into a digitally empowered society and knowledge economy. The government has since undertaken several initiatives in the areas of e-governance, skill building and digital infrastructure creation in order to enhance the level of digitalisation.
Notification of M&A and spectrum trading/sharing guidelines (2014, 2015)
The government finalised the telecom merger and acquisition (M&A) norms in September 2014. Under these norms, a telco looking to merge with or acquire a rival operator would have to ensure that the combined share of the merged entity is below 50 per cent, in terms of both subscriber base and AGR, in a particular circle. Following this, in September 2015, the union cabinet approved TRAI’s spectrum sharing and trading guidelines, under which the entire spectrum holding of operators was made eligible for spectrum sharing, provided both licensees had airwaves in the same band. Similarly, spectrum trading was permitted in all frequency bands.
Holding of the biggest spectrum auction ever (2015)
In early 2015, DoT conducted its biggest-ever spectrum auction, garnering Rs 1.1 trillion. While the auction helped resolve the long-standing spectrum crunch issue, the large payouts on account of exorbitant spectrum prices took a toll on operator balance sheets.
Reliance Jio’s disruption of the market (2016)
Reliance Jio entered the telecom industry with an aggressive pricing strategy and garnered a large subscriber base in absolutely no time, eating into the market shares of the incumbents and eventually taking the top spot in the market. Its entry was followed by a major market consolidation, with a series of exits by smaller players that were unable to compete with Jio’s near-zero tariffs, ongoing investments, and superior network offerings among players to sustain operations.
Release of RoW Rules (2016)
A major development in the infrastructure space during 2016 was the release of the Right of Way [RoW] Rules to facilitate the installation of mobile towers and the laying of optic fibre cables. The rules, which came into effect in November 2016, created a framework for streamlining approvals, establishing a single-window clearance mechanism, allowing online filing of applications and rationalising fee structures.
IUC reduced sharply (2017)
In a major blow to the industry, TRAI decided to reduce interconnect usage charges (IUC) by a hefty 57 per cent to
Re 0.06 per minute from the previous Re 0.14 per minute. Later, in 2021, the IUC was eliminated altogether, transitioning the sector to a bill-and-keep regime.
Launch of NDCP to usher in the next phase of growth (2018)
The National Digital Communications Policy [NDCP], 2018 was launched to support the adoption of next-generation technologies such as 5G, artificial intelligence, internet of things, cloud and big data. This landmark policy sought to give a larger digital identity to the telecom sector.
Passing of the AGR verdict (2019)
In October 2019, the Supreme Court ruled in favour of the government on the AGR issue, upholding the definition of AGR as suggested by DoT. The ruling, which mandated service providers to shell out Rs 920 billion in AGR dues, delivered a major blow to the incumbents. The telcos had filed curative petitions before the Supreme Court, which were rejected in 2024, reinforcing the court’s judgment as final and binding.
Launch of the PM-WANI scheme (2020)
In 2020, the government approved the Prime Minister’s Wi-Fi Access Network Interface (PM-WANI) scheme to boost broadband proliferation through public Wi-Fi networks. The initiative facilitated the deployment of public data offices without requiring licensing, thereby making internet access more affordable and widespread.
Relief package for the telecom sector (2021)
In 2021, the government introduced a comprehensive relief package for the telecom sector, which included a moratorium on AGR payments, rationalisation of spectrum usage charges and permission for 100 per cent foreign direct investment under the automatic route. This package aimed to alleviate the financial stress on telecom operators and revitalise the industry.
Launch of the PLI scheme for telecom and networking products (2021)
The government launched a production-linked incentive (PLI) scheme in 2021 worth Rs 121.95 billion to encourage domestic manufacturing of telecom and networking equipment. The scheme aimed to reduce dependency on imports and promote the production of core transmission equipment, 4G/5G RAN systems, access devices, customer premises equipment and enterprise solutions within India.
Launch of commercial 5G services (2022)
In October 2022, the government inaugurated 5G services in India, marking a new era of connectivity. With operators such as Airtel and Jio leading the deployment, the roll-out unlocked advanced applications such as IoT, augmented reality/virtual reality and Industry 4.0, signalling a transformative shift in the country’s digital landscape.
Release of the Bharat 6G Vision document (2023)
The Bharat 6G Vision document was released in March 2023, positioning India as a key player in the global development and deployment of 6G technology by 2030. Created by a technology innovation group on 6G, comprising government ministries, research institutions, academia and industry players, the vision lays emphasis on affordability, sustainability and universal access to next-generation telecom technologies.
Introduction of the DPDP Act, 2023 (2023)
Enacted after more than half a decade of deliberations, the Digital Personal Data Protection [DPDP] Act, 2023 is the first cross-sectoral law on personal data protection in India. It establishes a legal framework for the lawful processing of personal data and aims to empower and protect data principals. Key principles such as accountability, transparency, data minimisation, fairness, accuracy and lawful data handling are enshrined in the act.
Release of the Indian Telecommunications Act, 2023 (2023)
The Indian Telecommunications Act, 2023 was enacted by Parliament in December 2023. This landmark legislation aims to amend and consolidate the laws governing the development, expansion and operation of telecommunication services and networks. It also focuses on the assignment of spectrum and other related matters, paving the way for modernised regulatory and operational frameworks in the telecom sector.
