Lt. Gen. Dr. S.P. Kochhar, Director General, COAI
In the post-pandemic era, our dependence on the telecom sector has increased rapidly and has become a part of our lives, which has created more demand for strong networks and better connectivity. Catering to this increased demand, the telecom sector has delivered commendably in 2022. The structural and procedural reforms in the telecom sector approved by the government last year, such as e-KYC, rationalisation of bank guarantee, exemption of spectrum usage charge (SUC) for spectrum acquired in future auction, 100 per cent FDI under the automatic route, rationalisation of adjusted gross revenue (AGR), rationalisation of interest rates and penalties, and facilitating Right of Way (RoW) have shown a positive impact in 2022.
One of the major landmarks for India in 2022 was the much-awaited launch of 5G services in the country by the Hon’ble Prime Minister Narendra Modi during the India Mobile Congress 2022. Besides bringing in a radical transformation in the digital processes and efficiencies of industries and in the regions of governance and connectivity, 5G is also expected to generate significantly more direct and indirect job opportunities. This also calls for more on-the-job training and skill development programs to manage the technology. The deployment of 5G will be a major force in realising India’s vision to become a $1 trillion digital economy by 2025.
The Indian Telegraph Right of Way (Amendment) Rules, 2022, will help the industry in faster proliferation of digital infrastructure, via deployment of small cells, aerial fibre, and use of optimal use of street furniture to enhance connectivity. There is a provision for small cells, electric poles, access to street furniture, etc. introduced for the easy and smooth deployment of 5G networks. We are delighted with the provision for legal backing of Right of Way, which has been the biggest hindrance in the roll-out of 5G.
The industry had numerous concern areas that are under consideration in the reformative draft Indian Telecommunication Bill, 2022. Several positive provisions have been made in the draft bill with the objective to enable regulatory certainty, ensure a level playing field, and apply the law prospectively. The mandates related to effective use of spectrum, license framework, dispute resolution and graded penalties will improve the efficiency of the law. The draft bill also lays emphasis on spectrum related reforms such as refarming and harmonisation, sharing/trading/leasing, technology agnostic use, returning unused spectrum to government, surrender of spectrum, etc. which will help in making prudent use of the national resource.
Further, the draft bill lays emphasis on the “Protection of Users” with key provisions on KYC, protection from unsolicited messages, identity of caller to be visible to receiver, duty of user to give correct KYC, etc. This will help tackle the issues directly impacting the general public i.e., the issues of security, fraud and unsolicited telemarketing calls and messages.
The industry lauds the reforms brought in the areas of wireless licensing which has sped up investments and made it simpler to obtain the certificate clearance from the Standing Advisory Committee on Radio Frequency Allocation (SACFA), which is necessary to place small cells on street furniture, along with a marked reduction in the processing fee.
Digitisation of processes introduced by the government on several fronts is enhancing ease of doing business in the country. Bringing telecom equipment into the country, for example, has been made easier as the entire import license process has been made online, and self-declaration based clearance adopted instead of earlier scrutiny-based clearance. This will help in quicker deployment of the equipment in the country. Similar provisions have been introduced to make it easier to get technical clearance from the Department of Telecommunications (DoT) for telecom towers. Digitisation of records and auto renewal of licenses are also resulting in drastic reduction in the service delivery time. The entire licensing process has been made online through the Saral Sanchar portal, resulting in reduction in times from an average period of 1 year earlier, to just 2 months.
The government also released the draft Data Protection bill for discussion and deliberations with the relevant stakeholders. This is a landmark step which will have important implications in the year to come.
The telecom sector is enthused and motivated by the impetus being provided by the government towards strengthening the critical telecom ecosystem in the nation, and we look forward to providing all the requisite support to help realise the collective vision of a ‘Digital India’ for all. The government’s efforts have energised and galvanised the industry, and we look forward to providing all the necessary support towards fulfilling the nation’s objectives.
5G perspective
2022 witnessed the launch of 5G services in India, which has been a turning point for the entire country. Prime Minister Narendra Modi inaugurated the 5G services at the India Mobile Congress, paving the way for the multiple opportunities in each sector from manufacturing, healthcare and augmented entertainment to smart city projects coupled with new-age technologies like internet of things (IoT), machine-to-machine (M2M), drones, artificial intelligence (AI), and big data analytics with 5G. We believe that 5G will create both direct and indirect job opportunities to a significant extent, opening avenues for people and businesses that have the potential to completely change the economic landscape of India. It is expected that 5G services will greatly augment both efficiency and output in several areas – whether it be industry, governance or public utility.
A Deloitte-CII report indicates that India is poised to become a leading country in 5G penetration and development over the next 5–7 years due to its high population density, along with its reliable phase-wise rollout plan in long-term scenarios. Telecom service providers (TSPs) are working with the government to deploy use cases to accelerate commercial 5G adoption by enterprises and end users, while state governments are gearing up for adopting and integrating the technology in applications for enhanced governance. As per Futurex, TSPs are also expected to increase investments to the tune of 2-2.5 times, especially with regard to strengthening the security aspects of their network operations.
Further, fiberisation being critical for the success of 5G, a lot needs to be done as only approximately 35 per cent of the BTS sites are presently connected to fibre networks. While the central government, creditably, introduced the amended Right of Way (RoW) guidelines earlier this year, huge challenges still remain in ground-level implementation of the same at different state and local authority levels. Expedited adoption of these guidelines by the states/local authorities will facilitate faster deployments of telecom infrastructure, for establishing an efficient pan-India 5G network and faster rollouts of the services.
State governments and local bodies also impose exorbitant charges for deploying telecom infrastructure on street furniture presently. They need to adopt the latest amendment in RoW rules, which prescribe the fees and compensation for deploying small cells and aerial fibre on street furniture such as electricity board (EB) pole, street light poles, etc.. Commendably, some of the states have already constituted committees to look into these aspects for early rollout of 5G infrastructure.
Moreover, state electricity boards need to provide EB connections to the telecom sites – both macro and micro at industrial/utility rates. Given the importance of having digital connectivity always available, especially with the advent of critical real-time applications on 5G, availability of power at reduced rates is crucial, and would aid the sector in providing 5G services to the users in the most efficient manner.
5G network technology is expected to contribute about 2 per cent to India’s gross domestic product (GDP), amounting to $180 billion by 2030. According to the Ericsson report mobility report, 5G subscribers in India are expected to reach around 690 million by the end of 2028. Urban areas are likely to have 5G services available for public consumption by March 2023.
Irrefutably, India is set to emerge as a leading country in the field of 5G in the coming years, and the technology, in turn, will help us gain a highly competitive position in the global market.
