Lt Gen. Dr S.P. Kochhar, Director General, COAI

In the dynamic landscape of India’s telecommunications sector, the year 2023 marked a momentous period characterised by transformative initiatives, particularly the nationwide roll-out of 5G. Lauded as the fastest in the world, this strategic deployment, coupled with progressive government policies, has firmly positioned India as a global leader in the ongoing 5G revolution.

As of October 2023, the subscriber base for telecom services in India reached an impressive 1.182 billion, making it the second largest in the world. This substantial expansion underscores the growing significance of information and communication technology. Notably, the average data usage per subscriber surged to 18.4 GB in June 2023, reflecting the increasing reliance on telecom services in the country.

Progressions towards a sustainable telecom ecosystem

The telecom landscape in India witnessed a significant stride forward with the Telecommunications Act, 2023 receiving the assent of the President in December 2023. This comprehensive legislative measure places strong emphasis on fostering robust telecom networks, as evidenced by the well-defined chapter on right of way (RoW). The act ensures the granting of RoW in a non-discriminatory manner, coupled with a clear directive that exempts this network from tax, levy, cess, fees or duties on the associated property. A notable provision is the prevention of coercive actions, such as sealing or shutdowns without due permission from the central government. These positive measures are poised to enhance the connectivity of Indians, ensuring a resilient digital network that spans the entire country. The act also demonstrates a commendable focus on clarifications and penalties. By introducing proportionality and nexus with the nature of the offence, it establishes a considered and rational approach to penalties. This progressive step not only enhances industry confidence but also contributes to the ease of doing business.

A significant regulatory shift is the replacement of the term “licence” with “authorisation” in the legislation. This modification aims to simplify the overall regulatory landscape for telecom services, bringing clarity to the authorisation requirements for providing telecommunication services. Furthermore, it also incorporates stringent provisions to address the unlawful interception of messages or unauthorised access, thereby bolstering national security. Notably, it places the authority to authorise internet shutdowns exclusively in the hands of the central government. This approach ensures continued, uninterrupted and seamless telecom connectivity for all, aligning with the broader goal of building a robust and inclusive digital infrastructure across the nation.

In 2023, the Telecom Regulatory Authority of India (TRAI) took proactive measures to bridge the digital divide, proposing specific measures to enhance telecom infrastructure in the underserved northeastern states. Simultaneously, the Ministry of Defence introduced progressive RoW Rules, further streamlining the deployment process for telecommunication networks.

A significant milestone in the industry was the advent of 6G technology. Although still in the research phase, India aims to complete the 6G roll-out by 2030. Prime Minister Narendra Modi’s release of the 6G vision document and establishment of 6G labs in India underscores a collective effort in shaping the future of telecom, contributing significantly to global 6G research.

Efforts to bridge the broadband gap include the launch of the fixed wireless access system in the country, particularly in areas with less than 10 per cent home broadband penetration. This innovative system, offering fibre-like bandwidth through wireless means, accelerates deployment in densely populated areas where laying optical fibre cables may not be feasible. Further, the rapid pace of innovation in the telecom sector necessitates a multifaceted approach to cybersecurity. While technologies such as edge computing, blockchain, artificial intelligence (AI), internet of things (IoT), and digital tokens offer opportunities, they also pose security challenges, necessitating robust protocols and secure architectures for a resilient digital future.

Challenges in India’s telecom landscape

Despite these advancements, challenges persist, including the allocation of the 6 GHz spectrum, which is crucial for maintaining network quality. The recent decision by the World Radiocommunication Conference to open up the 100 MHz spectrum in the 6 GHz band for mobility services globally underscores the importance of allocating this spectrum for international mobile telecommunications services in India. Additionally, addressing the burden placed on telecom service providers by large traffic-generating (LTG) digital platforms is imperative for sustainable growth and financial viability. Another major challenge is the LTG digital platforms’ contribution to network costs. Telecom service providers (TSPs) have been demanding a fair and equitable contribution from LTGs to ensure quality telecom and digital connectivity services for Indian citizens, without putting the burden on end-users, start-ups, and micro, small and medium enterprises to recover these high costs. LTGs have been burdening telcos’ network infrastructure with disproportionate traffic, all the while earning significantly from both subscription fees and advertising revenues. This situation places an undue burden on TSPs, hindering their financial sustainability and business viability. Thus, it is imperative that LTGs contribute to this rising infrastructure cost, especially as we look forward to an era of increasing convergence of services and verticals, with more bandwidth-heavy applications expected to emerge.

The introduction of the proposed Lowering Broadband Costs for Consumers Act of 2023 in the US was another pivotal development, which clearly establishes the need for various “edge service providers” that generate disproportionately large traffic, that is, LTGs, to contribute towards infrastructure costs in order to make digital connectivity affordable for end-users. This is a global acknowledgement of the need for LTGs to contribute to network costs and vindicates the position of the Indian telecom sector.

As per a recent TRAI report, the high cost of electricity constitutes nearly 25 per cent of operational expenses for TSPs. This translates to billions of dollars diverted from network upgrades and expansion, ultimately impacting millions of users and hindering India’s digital ambitions. This makes it all the more necessary for LTGs to share revenue with TSPs. Government intervention, through targeted policy initiatives and collaborative efforts with the industry, is crucial for overcoming this roadblock and unleashing the transformative potential of telecom.

With this lightning-fast rate of innovation, the need for a multifaceted approach to cybersecurity is more significant than ever. Technologies such as edge computing, blockchain, AI, IoT, and digital tokens offer opportunities but also pose challenges to security. Protocols, firmware updates, and secure architectures are essential to ensure a safe digital future.

In conclusion, as India cements its 5G dominance, the telecom industry buzzes with the anticipation of a transformative wave of use cases. From revolutionising industries to empowering individuals, 5G promises to be the fuel propelling India towards a digitally empowered future. Industry stakeholders are also anticipating a collaborative effort with LTGs to develop high quality networks and a responsible fair-sharing model, ensuring sustainable growth for the entire digital ecosystem. Regulations will also play a major role in addressing challenges, providing a supportive framework for innovation while ensuring free and fair competition.