The Indian telecom infrastructure space is witnessing exponential growth driven by expanding 4G and 5G network coverage, government initiatives to bolster the country’s digital connectivity and a conducive regulatory environment. As per the Digital Infrastructure Providers Association (DIPA), the deployment of telecom infrastructure, including telecom towers, small cells, and optical fibre cable (OFC), has seen significant growth in India.
However, the year 2023 seemed to be a challenging one, particularly for the towerco segment. The limited number of telcos in the industry impacted the growth in this space. Expanding 5G network coverage demanded a greater number of towers, but the shifting dynamics of the Indian telco space towards a perpetual duopoly structure imposed immense pressure on towercos’ margins. This was evident in the slower deployment of towers, as net additions for almost all tower companies declined on a year-on-year basis.
As a result, the American Tower Corporation’s India unit recently signed a definitive agreement to sell a 100 per cent equity stake to Brookfield Asset Management-sponsored Data Infrastructure Trust. Further, in 2023, the Competition Commission of India also approved the acquisition of Tower Vision India Private Limited’s 100 per cent shareholding by Ascend Telecom Infrastructure Private Limited and GIP EM Ascend 2 Pte. Limited.
As we enter 2024, the Indian towerco market is expected to embark on a new growth phase, characterised by 5G-driven infrastructure sharing, a focus on tower fiberisation and small cells, and increased investments in non-core domains like edge computing, smart cities, internet of things, and electric vehicle charging. Additionally, OFC roll-outs will be driven by a renewed focus on the BharatNet project. Satellite communication (satcom) is another key area that witnessed immense activity.
A look at the key developments that shaped the digital infrastructure space in 2023 and the way ahead…
Scaling up tower and fibre connectivity
Currently, the telecom tower count in India stands at around 780,000, while the number of base transceiver stations (BTSs) stands at 2,880,000. Since the launch of 5G services, the growth in 5G BTSs has been phenomenal, with the number of BTSs increasing exponentially from just 53,590 in January 2023 to nearly 400,000 in November 2023.
In terms of OFC networks, India had 3,726,577 km as of 2023. Further, as of 2023-24, 676,996 km of OFC was laid under the BharatNet project. In fact, the project witnessed a renewed focus during 2023 with the union cabinet approving an outlay of Rs 1.39 trillion for the project. With this upgrade, the government aims to modernise the BharatNet project by changing its execution strategy and providing fibre connections to the last mile through village-level entrepreneurs.
Further, the National Highways Authority of India (NHAI) announced that it was working towards the development of around 10,000 km of digital highways or OFC infrastructure across the country by financial year 2024-25. National Highways Logistics Management Limited, a fully owned special purpose vehicle of NHAI, will set up the network of digital highways by developing integrated utility corridors along
national highways to develop OFC infrastructure. Around 1,367 km on the Delhi-Mumbai expressway and 512 km on the Hyderabad-Bengaluru corridor have been identified as pilot routes for this initiative.
Developments for easing RoW
On the policy front, easing right of way (RoW) rules was a key theme. To this end, the government launched the new amendments to the Indian Telegraph Right of Way [RoW] Rules, 2016, and introduced the Indian Telegraph Right of Way (Amendment) Rules, 2023. These new amendments enable rapid network reinstatement in the event of underground telecom infrastructure damage, expedite 5G roll-out by utilising the state’s existing infrastructure, simplify application procedures for multiple small cell sites and allocate central government areas for small cell deployment at no cost.
The amendment also includes a definition for the term “street furniture”, encompassing posts or poles used for electricity, street lights, traffic lights, traffic signs, bus stops, tram stops, taxi stands, public lavatories, memorials, public sculptures, utility poles, or any other structure or contrivance of such nature established over the property of an appropriate authority. Further, licensees have the option of submitting a single application for multiple sites, for which the appropriate authority would make due provisions for accepting such applications and accordingly issue single permissions for multiple sites for the establishment of small cells. Moreover, in the amendments, DoT revised the schedule for fees, charges, and compensation for different activities.
Further, the Ministry of Defence also revised its 2018 rulebook to allow the installation of telecom infrastructure on defence land to enhance communication network quality and facilitate 5G roll-out. Under the revised rules, cantonment boards and station headquarters would be granted the authority to approve the installation of telecom infrastructure on defence land within a specified deadline.
Measures to safeguard telecom infrastructure
To safeguard telecom infrastructure, DoT notified the Indian Telegraph (Infrastructure Safety) Rules. The rules outline the procedure for exercising the legal right to dig or excavate any property. As per the rules, any person intending to dig or excavate any property that could damage telegraph infrastructure or interrupt telegraphic communication must provide prior notice to the licensee. This notice should be submitted through a common portal, detailing the information about the digging or excavation before commencing such exercise. The notice should include the name and address of the person exercising the legal right, agency details, contact details, date and time of the start of the exercise, description and location of the exercise, and the reasons for the digging or excavation. Further, the rules state that any person who has dug or excavated any property in such a manner causing damage to a telegraph infrastructure would be liable to pay the damage charges to the telegraph authority. The damage charges will be computed based on the expenses incurred in restoring damages.
States undertake initiatives to escalate digital infrastructure creation
State governments remained active during 2023 and undertook initiatives to hasten digital infrastructure creation. For instance, the Urban Development and Housing Department of the Government of Rajasthan allowed telecom service providers to install mobile towers on buildings without requiring permission from any authority. Under the new scheme, telecom companies will no longer be required to obtain permission from the authorities for laying cables or installing mobile towers or poles on private properties, particularly for 5G services.
The Assam government approved guidelines for granting RoW to telecommunication infrastructure in the state to facilitate a speedy 5G roll-out. The highlights of the guidelines include introduction of a single window clearance for 5G RoW applications, integration of Assam RoW applications with the central GatiShakti Sanchar portal for 5G purposes and provisions for using street infrastructure for the deployment of small cells and overground cables. Further, the Goa state cabinet granted approval to amend the Telecom Infrastructure Policy for rolling out 5G mobile services in the state.
Moreover, the Himachal Pradesh government signed an MoU with Bharat Sanchar Nigam Limited (BSNL) for laying optical fibre cable to provide 4G coverage in unconnected, remote, and far-flung areas of the state. The project will entail installing around 500 km of OFC along with mobile towers for the expansion of connectivity in the state.
Meanwhile, the Haryana cabinet approved the revision of the Communication and Connectivity Infrastructure Policy, 2023. The revised policy establishes a framework for the creation of enabling 5G infrastructure, including ducts alongside roads. It allows multiple service providers to share the same infrastructure to optimise RoW availability and prevent frequent disruptions caused by multiple infrastructure providers digging in the RoW.
The Madhya Pradesh government introduced a policy for the rapid expansion of the 5G network in the state. As per the policy, the licencing authority should dispose of the application for a licence on government land/property within 60 days of receiving it. This time limit includes the time required to obtain no objection certificates from various authorities and officers.
In November 2023, the Delhi government released the Delhi RoW Policy for Underground Infrastructure and Over-ground Telecommunications Infrastructure, 2023, in alignment with the central RoW rules to expedite the deployment of telecom infrastructure in the state. The state RoW policy aims to facilitate the deployment of micro-communications equipment/poles on any structure or building, regardless of its specified usage. The policy also outlines guidelines for the usage of street furniture for installing small cells and telegraph lines; the establishment of telegraph infrastructure over private property; and the usage of ducts for installing OFC.
Soaring satcom services
The satcom space also witnessed immense activity during the year. In March 2023, Eutelsat OneWeb confirmed the successful deployment and contact of 36 satellites launched by NewSpace India Limited (NSIL) from the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh. The mission marked OneWeb’s second satellite deployment from India, highlighting the strong partnership with NSIL and the Indian Space Research Organisation (ISRO), showcasing OneWeb’s commitment to providing connectivity across the length and breadth of India. Once activated, OneWeb’s coverage solutions will bring secured connectivity to enterprises, towns, villages, municipalities, and schools, including the most remote areas across the country.
The most notable move was the launch of the Indian Space Policy, 2023. The new policy allows private low earth orbit and middle earth orbit satellite constellation operators to launch high speed broadband services from space. It also allows non-governmental entities and private satellite operators to offer national as well as international space-based communication services through owned, procured or leased geostationary orbit (GSO) or non-GSO satellite systems. Moreover, private satellite players are permitted to establish and operate satellite earth stations and satellite control centres in India. They are also allowed to utilise both Indian/non-Indian orbital resources to establish space objects for communication services both within and outside India.
Further, in July 2023, the GST Council announced that Goods and Services Tax exemption on satellite launch services supplied by ISRO, Antrix Corporation Limited and NSIL will be extended to such services supplied by organisations in the private sector to encourage start-ups.
Additionally, the Gujarat government’s Department of Science and Technology and OneWeb signed an MoU for the establishment of a satellite network portal site in Gujarat. It aims to provide affordable connectivity to various sectors, including government, offering continuous and secure satellite internet access at affordable rates nationwide.
Recently, in November 2023, the government granted a licence to Jio Satellite Communications and Bharti Enterprises-owned OneWeb to provide broadband services to end-consumers via satellite. Further, OneWeb India also received the necessary authorisations from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to launch Eutelsat OneWeb’s commercial satellite broadband services in the country.
Going green
The infrastructure space witnessed key initiatives to increase the uptake of renewable energy and sustainability initiatives. The number of diesel-free sites went up to 223,904 in March 2023, as compared to 90,911 sites in December 2016. As a result, approximately 570 million litres of diesel was saved annually.
On the policy front, the Ministry of Power’s notification of the second amendment to the Green Energy Open Access Rules, 2022 was a welcome move. According to T. R. Dua, director general, DIPA, “The policy amendment is a long outstanding demand of the telecom industry and it will help infrastructure providers to reduce their opex significantly. Since telecom tower sites operate on substantially lower power, allowing a cumulative power of 100 kW will enable a telecom company to purchase renewable power through open access at comparatively cheaper rates.”
Among towercos, Indus Towers Limited signed an agreement with Indian Oil Corporation Phinergy Private Limited for the deployment of 300 zero-emission aluminium-air technology-based energy systems to optimise diesel consumption at Indus’s telecom tower sites.
What lies ahead
As we enter 2024, the stage is set for the telecom industry to embrace the new Indian Telecommunications Act, replacing the previous obsolete acts in the sector and paving the way for modernisation. The act recognises telecom as critical infrastructure, representing a watershed moment in the telecom reform process. It reaffirms the government’s commitment to provide the industry with a future-fit framework for strengthening digital infrastructure, thereby helping to achieve the growth aspirations of a new India.
The government’s proactive approach, coupled with the telecom infrastructure industry’s willingness to scale up developments, lays a strong foundation for strengthening of digital infrastructure. As India expands its 5G footprint, several opportunities are set to open up for stakeholders operating in the telecom infrastructure segment in the coming year.
Kuhu Singh Abbhi
