Tracking Growth: Achievements and progress in the telecom space

Over the past 25 years, the Indian telecom sector has experienced remarkable growth, transitioning from a government-run monopoly to a vibrant, competitive and internationally recognised market. Supportive policies, technological advancements and regulatory reforms have been instrumental in shaping the growth of the sector, helping it become one of the largest telecom markets globally.

Liberalisation and privatisation era

In the early 1990s, India’s telecom sector was a state monopoly, characterised by inadequate infrastructure and limited accessibility. The country’s teledensity was extremely low, and services were expensive.

The National Telecom Policy of 1994, which ushered in liberalisation in the sector, dramatically changed the status quo. The policy allowed for the entry of private players and foreign investments into the country, paving the way for increased competition and expansion.

Consequently, several private telecom companies, including stalwarts like Bharti Airtel and Reliance Communications, entered the market. The spirit of competition drove innovation in the sector, thereby improving service quality, reducing prices, facilitating the development of digital infrastructure, and creating a robust foundation for the sector’s future growth.

Expansion of mobile services

The 2000s witnessed the rapid growth of mobile services in the country, largely driven by the introduction of GSM and CDMA technologies. This period witnessed an exponential growth in the number of mobile phone subscribers as intense tariff wars between telecom operators led to a significant reduction in mobile service costs, making them more accessible to the masses. The advent of mobile phones in India drastically transformed communication, narrowing the gap between rural and urban areas as efforts focused on improving connectivity in underserved areas began to gain momentum.

Internet revolution, smartphone surge and rise in app usage

The 2010s marked the commencement of India’s internet revolution. The introduction of 3G technology in 2010, followed by 4G in 2016, brought high speed data services to the masses. As more people gained access to the internet, digital platforms flourished, transforming communication, entertainment, e-commerce and education.

The Digital India campaign, launched in 2015, provided a significant push for improving digital infrastructure, increasing internet connectivity and promoting e-governance. Perhaps the most ambitious policy framework, this initiative aimed at transforming India into a digitally empowered society and knowledge economy. To bolster this campaign, the government has invested heavily in expanding broadband networks and ensuring that underserved regions have access to essential services such as education, healthcare and financial inclusion.

Another factor driving the growth of internet connectivity in the country has been the widespread adoption of affordable smartphones. Domestic and international smartphone manufacturers made smartphones more accessible to the average consumer by offering budget-friendly models equipped with modern features.

This rise in smartphone usage fuelled the explosion of mobile internet users, with more individuals accessing digital content, social media, e-commerce, banking services, etc. The growing app ecosystem, with platforms such as WhatsApp, YouTube, Facebook and Paytm, became an integral part of the Indian digital experience, allowing people to connect, learn, shop and communicate seamlessly.

Rural connectivity and inclusion

One of the key challenges for India’s telecom sector has been ensuring rural connectivity. While urban areas have witnessed rapid growth in telecom services, rural India still faces connectivity challenges. To address this, the government has focused on improving telecom infrastructure in rural areas through projects like BharatNet and achieving digital equity. Launched in 2011, BharatNet is one of the biggest rural telecom projects in the world and aims to connect over 600,000 villages with broadband. Currently, 214,323 gram panchayats have been connected through the BharatNet project and 104,574 Wi-Fi hotspots have been installed.

Viksit Bharat

The development of telecom infrastructure has been central to the growth of the sector. To support the increasing demand for data and connectivity, the government launched the National Broadband Mission, aimed at deploying optical fibre cables (OFC) and increasing the number of mobile towers across the country. These initiatives aim to improve network coverage and increase internet speeds, especially in rural and remote areas. So far, 692,676 km of OFC has been laid and 1,221,014 fibre-to-the-home (FTTH) connections have been established.

The role of public-private partnerships in infrastructure development has been crucial. By leveraging private sector investment and expertise, the government has been able to accelerate infrastructure deployment and ensure that telecom services reach a broader audience. There has also been a huge development of public infrastructure such as Digi Yatra, DigiLocker, CoWIN and UPI, which have made the lives of individuals easy.

Jio’s disruption and industry consolidation

In 2016, Reliance Jio’s entry into the market disrupted the telecom industry by offering free data services and affordable tariffs, which not only spurred competition but also led to a dramatic increase in mobile internet users.

The intense competition in the telecom market during the late 2010s led to significant industry consolidation. As smaller operators struggled to survive in the face of aggressive pricing and increasing regulatory burdens, several mergers and acquisitions took place. Notable examples include the Vodafone-Idea merger and Airtel’s acquisition of Telenor.

By the end of the decade, the number of telecom operators in India had reduced, leaving only a few dominant players, including Reliance Jio, Bharti Airtel and Vodafone Idea. While consolidation helped stabilise the industry, it also meant that the market was now largely concentrated in the hands of a few operators, raising concerns about market competition.

Regulatory reforms

The regulatory landscape for India’s telecom sector has evolved significantly. The Telecom Regulatory Authority of India (TRAI) and the Department of Telecommunications (DoT) play vital roles in creating and enforcing telecom policies, ensuring consumer protection and promoting fair competition.

Key regulatory reforms have included the redefinition of adjusted gross revenue (AGR), which clarified the revenue-sharing mechanism between telecom operators and the government. Additionally, the government introduced measures, such as the moratorium on spectrum payments, to ease the financial burden on telecom companies and help them invest in network expansion and 5G technology. Further, recent measures to boost the ease of doing business include reducing the licence fees, easing foreign direct investment norms and simplifying processes for approvals.

Consumer-centric policies

India’s telecom policies have evolved to focus on consumer welfare, with the government taking steps to ensure affordable pricing and quality of service for consumers. Measures such as the simplification of tariffs, implementation of faster grievance redressal mechanisms and the introduction of number portability have enhanced the overall customer experience.

Additionally, the government has been actively addressing issues such as spam, cyber fraud and data privacy, ensuring that telecom operators adhere to high standards of security and transparency to protect consumers. This has resulted in TRAI taking stringent measures to prevent unsolicited commercial communication, DoT coming up with an indigenous international incoming spoofed calls prevention system, and the government introducing the draft Digital Personal Data Protection Rules, 2025.

Focus on self-reliance

Aligning with the Atmanirbhar Bharat (self-reliant India) and Make in India initiatives of the government, there is a push for domestic manufacturing of telecom equipment and reducing the dependence on imports. Initiatives such as the production-linked incentive (PLI) scheme aim to strengthen local telecom hardware production and attract global investment. Consequently, according to DoT, India has attained 60 per cent import substitution in telecom products under the PLI scheme. Further, it aims to foster a vibrant ecosystem for semiconductors under the design-linked incentive scheme by offering financial incentives and design infrastructure support to develop semiconductors.

Spectrum policy and allocation

As telecom services have expanded, the demand for spectrum – the radio frequencies used for communication – has grown significantly. Spectrum allocation has become a central focus of government policy, and the government has been working to streamline the auction process, ensure transparent allocation and reduce litigation.

That said, policymakers advocate for reduced spectrum usage charges and rationalised reserve prices in spectrum auctions to encourage more investment in telecom infrastructure. This has been particularly important in the context of the roll-out of 5G technology, which requires a large amount of spectrum to support its high speed, low latency services.

Encouraging 5G and emerging technologies

In 2022, India positioned itself as a leader in the development of 5G technology and carried out the fastest 5G roll-out in the world. This is a game changer for industries such as healthcare, education, agriculture and manufacturing.

The government has focused on fostering an ecosystem for innovation by supporting the development of emerging technologies such as artificial intelligence, internet of things and robotics, all of which can leverage 5G networks to create new applications and opportunities. India’s push towards indigenous technology development and domestic manufacturing is designed to make the country self-reliant in critical telecom technologies and reduce dependence on foreign imports.

Conclusion

The telecom sector has had a major impact on India’s economy and society. It has become a significant contributor to the GDP, generating millions of jobs, both directly and indirectly. The availability of affordable telecom services has also improved access to essential services like education, healthcare and financial services, contributing to digital inclusion. Further, India’s telecom sector has become the second-largest telecom market in the world by subscribers, cementing the country’s position as a global leader in digital connectivity.

However, despite significant progress, the Indian telecom sector faces several challenges. High debt levels among telecom operators, expensive spectrum costs and infrastructure gaps in rural areas remain key concerns. Additionally, cybersecurity, data privacy and regulatory compliance issues continue to require attention.

That said, with ongoing advancements in 5G and emerging technologies, the sector’s future looks promising, and India is well positioned to remain at the forefront of global telecom innovation in the years to come.