With this issue, we celebrate our 21st anniversary. In these 21 years, the narrative of telecommunications has changed considerably, world over as well as in India. Connectivity has moved beyond people to machines, devices, vehicles and household appliances, enabled by advancements in telecom networks and technologies. Digitalisation has emerged as the bedrock of economic, social and inclusive growth for nations.
The year 2020, in particular, saw the rise of digital like no other. The unfolding of the Covid-19 crisis had an unprecedented impact on countries, economies, businesses and people. The pandemic changed the way people work, study, shop, eat, exercise and socialise, and while doing so, underscored the significance of digital networks in the modern world. High speed and reliable connectivity became an important tool to maintain business continuity during the pandemic.
In fact, the surge in data uptake proved to be the proverbial silver lining to the
Covid-19 crisis for the Indian telecom market, which had been facing significant headwinds. Among the several transformational changes that the pandemic ushered in, the key one was the large-scale adoption of fibre-based home broadband and in-building solutions such as Wi-Fi and small cells.
While debt continues to be the Achilles heel of telcos, impeding their ability to invest in future technologies, the Supreme Court’s grant of a 10-year timeline to clear their outstanding AGR dues has come as a much-needed, though temporary, respite. For Vodafone Idea, in particular, it offers an opportunity to rewrite its telecom growth story in India.
For a sector still in distress, the telecom industry has shown exemplary resilience and provided solid support to the economy through a difficult year. Moving forward, it is imperative that the government focuses on improving the financial health of the sector by reducing the licence and tax burden on it, pricing spectrum at realistic levels, and providing relevant policy and regulatory support.
On their part, telcos need to urgently relook at industry tariffs, which remain at unsustainably low levels. They will also have to push their boundaries and pivot into end-to-end digital players to augment revenues over the long term.
Clearly, 2021 will be an interesting year for the sector. Covid has triggered an unprecedented trend towards network modernisation. And automation, softwarisation and virtualisation will emerge as the key network themes during the year.
There is also a strong likelihood of 5G becoming a reality in India, finally. Airtel and Jio have demonstrated that they are ready to initiate soft launches during 2021, but much will depend on the prices the government sets for 5G spectrum, and whether or not the telcos have the appetite to absorb these.
