Views of Anil Kumar Lahoti: “AI infrastructure has emerged as a strategic national asset”

During the past year, the Telecom Regulatory Authority of India (TRAI) devised various regulatory measures that have supported the integration of artificial intelligence (AI) into telecom networks, the creation of resilient and accessible AI infrastructure, the rapid expansion of 5G to drive enterprise automation, and the building of robust in-building digital connectivity backed by effective spectrum management. Anil Kumar Lahoti, Chairman, TRAI, spoke about these regulatory moves at various industry events during the course of the year, as well as about how emerging technologies and regulatory reforms are reshaping the sector’s future. Edited excerpts from his addresses…

Intelligent networks

AI and the telecom sector are increasingly merging to form the backbone of the digital economy, with telecom networks acting as the primary carriers of AI while the technology itself provides the intelligent layer that enhances telecom operations. Telecom service providers are increasingly using AI for network planning, optimising operations, predicting maintenance needs and improving consumer experience. At the same time, intelligent systems are being deployed to combat fraud, detect spam and automate complex workflows across networks.

As AI infrastructure expands at scale, ensuring resiliency has become another crucial dimension. This involves establishing safeguards and governance frameworks that allow AI systems to adapt to disruptions while remaining reliable, secure and accountable in serving both public and economic objectives. AI-based systems raise important concerns, particularly given their potential to affect millions of users through automated decision-making. This makes transparency, accountability and human oversight indispensable. Strong self-regulation plays an essential role in this process, enabling the industry to proactively mitigate AI-related risks through voluntary commitments and self-certification mechanisms. While intelligent technologies are already detecting and blocking nearly 400 million voice calls or messages every day through the combined use of AI and blockchain, the scale of deployment reinforces the need for responsible governance.

Against this backdrop of growing integration, AI infrastructure has emerged as a strategic national asset, particularly with India well positioned to capture 10-15 per cent of the estimated $17 trillion-$26 trillion that AI is expected to add to the global economy over the next decade.

Taken together, AI has moved beyond being a simple efficiency tool to becoming a foundational capability reshaping the telecom sector, especially in a market such as India, which has more than 1.2 billion telecom subscribers and around 1 billion data users. Under the India AI Mission, the government is facilitating affordable access to more than 38,000 graphics processing units (GPUs), along with a secure 3,000-GPU cluster for strategic use, aimed at strengthening national AI capabilities and enabling wider participation across sectors.

As India continues to advance towards large-scale AI adoption, the way AI infrastructure is designed, governed and deployed will ultimately determine whether the benefits of this technology remain concentrated or are widely shared across regions, sectors and institutions. Accessibility, resiliency and efficiency must, therefore, remain the core principles guiding the country’s AI infrastructure strategy.

Seamless connectivity

Industry estimates indicate that more than 80 per cent of data consumption takes place inside building premises, making robust and reliable digital connectivity within buildings essential to meet the growing connectivity requirements and rising consumer expectations.

The importance of in-building connectivity has increased further with the roll-out of 5G networks and will become even more critical for future 6G deployments. These technologies rely heavily on high frequency spectrum bands that enable ultra-high-speed data transmission but are also more susceptible to attenuation caused by walls and building materials. Without proper in-building solutions, the performance of advanced networks can be significantly compromised indoors, even when outdoor coverage remains strong.

However, these challenges are entirely solvable through well-designed in-building connectivity solutions that ensure consistent and high quality network performance. Alongside infrastructure deployment, effective spectrum management plays a crucial role in supporting seamless digital connectivity. Recognising its significance, the South Asian Telecommunication Regulators Council established a dedicated working group on spectrum as part of its action plan to strengthen regional cooperation and regulatory frameworks.

Platforms such as spectrum workshops further support this effort by facilitating knowledge sharing on emerging technologies, spectrum allocation strategies and policy development. By encouraging collaboration and the exchange of best practices, such initiatives help build regulatory capacity, strengthen cross-border coordination and promote sustainable growth in the telecommunications sector.

India’s progress in expanding digital connectivity has been particularly notable in rural areas. One of the most significant achievements over the past decade has been the more than 100-fold growth in rural broadband subscriptions. In several licence service areas, including Assam, Bihar, Himachal Pradesh, Odisha and Uttar Pradesh East, the total number of rural broadband connections now exceeds urban broadband connections.

Next-generation networks

In the initial phase of deployment, enhanced mobile broadband and fixed wireless access have emerged as the primary use cases of 5G networks, driving early adoption and expanding high speed connectivity across both consumer and enterprise segments. As 5G continues to expand, it is also significantly increasing the scope of machine-to-machine communications across multiple sectors of the economy. Areas such as agriculture, transport, healthcare and industrial automation are expected to benefit from intelligent connectivity that enables real-time monitoring, automated processes and data-driven decision-making.

To strengthen this evolving digital ecosystem, an inter-ministerial working group should be formed to promote the use of digital technologies and develop locally relevant use cases. This could bring together start-ups, academia, entrepreneurs and application developers to foster innovation and accelerate the adoption of advanced telecom-enabled solutions. There can also be the establishment of telecom innovation centres dedicated to developing solutions and applications for 5G and future 5G evolution use cases.

Satellite broadband

Satellite communication (satcom) has been developing rapidly and maturing, with nearly three decades of advancement behind it, and is already widely used for commercial communications across numerous applications. In the context of societal development, broadband connectivity is no longer a privilege but a fundamental necessity for enabling healthcare, education, governance and effective public service delivery. Therefore, ensuring ubiquitous access to broadband is critical to bridge socio-economic disparities, particularly in rural and remote areas where terrestrial infrastructure expansion and sharing remain challenging.

Further, innovations such as high-throughput satellites, small satellites, satellite-based internet of things (IoT) and advancements in ground stations, digitised payloads, propulsion systems and AI are revolutionising the satellite industry and are expected to complement the deployment of 5G and upcoming 6G technologies.

The government has implemented various reforms to promote satcom and lower operational costs, including removing restrictions on antenna size and carrier speed, eliminating multiple regulatory charges, broadening satellite licence scope, permitting 100 per cent foreign direct investment under the automatic route, and enabling greater private participation under the Indian Space Policy 2023.

To strengthen the regulatory framework, TRAI has recommended a unified service authorisation under the Telecommunications Act, 2023, the inclusion of non-terrestrial networks, and a structured spectrum assignment policy covering multiple frequency bands for both geostationary Earth orbit (GSO) and non-GSO systems, alongside faster approvals, revenue-linked spectrum charges, rural service incentives and technical safeguards aligned with international regulations.

Future outlook

Telecom services form the backbone of the digital economy, with the industry playing a critical role in supporting its growth. The contribution of the digital economy to the nation’s GDP has already reached about 12 per cent and is projected to rise to nearly 20 per cent by 2026-27. With the current growth rate running at approximately 2.8 times the overall GDP growth rate, the government has set an ambitious target of building a $1 trillion digital economy by 2027-28.

Against this backdrop of rapid expansion, maintaining high service quality remains a regulatory priority. From a regulatory standpoint, telecom service providers are largely complying with the latest quality of service norms as the framework continues to be tightened in line with the prescribed glide path. Service quality is being actively monitored through a multi-pronged approach, including regular audits and performance reviews, alongside proactive measures to encourage the continuous optimisation of network performance and the maintenance of service quality standards.

Looking ahead, the convergence of 5G, AI and IoT presents a major opportunity to shape forward-looking policies, ensure robust telecom infrastructure and foster innovation through effective regulatory frameworks. This technological convergence is expected to drive sustained advancement while supporting inclusive growth across multiple sectors of the economy.

I firmly believe that by working collaboratively with all stakeholders, the country can build on the momentum already created to deepen, expand and scale digital access for every citizen, particularly in underconnected and unserved regions.