An enabling regulatory environment has been instrumental in shaping India’s telecom growth story. The Telecom Regulatory Authority of India (TRAI) has been taking proactive steps in response to changing market dynamics and the evolving technological landscape. In an interview with Indian Infrastructure, Anil Kumar Lahoti, Chairman, TRAI, discussed the key consultation papers and recommendations issued by the regulator as well as the future priorities and focus areas…
What have been some of the key regulatory highlights of the past year?
TRAI released several significant consultation papers and recommendations during the past year. Most recently, in August 2024, TRAI initiated a consultation to review the Telecom Commercial Communications Customer Preference Regulations, 2018, aiming to strengthen the regulations around commercial communications. The paper discusses stricter measures against unregistered telemarketers, improved complaint redressal mechanisms, more effective unsolicited commercial communications (UCC) detection systems and stronger financial disincentives for the violation of regulatory provisions.
Another consultation paper was released to review the Telecom Consumers Protection Regulations (TCPR), 2012, aimed at increasing transparency and helping consumers understand various tariff plans. To keep up with changing scenarios and market situations, a consultation paper on the “Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023” was released in July 2024, outlining a regulatory framework for granting telecommunications service authorisations.
We have also floated a consultation paper seeking inputs on the identification of critical services in the machine-to-machine (M2M) sector and the transfer of ownership of M2M SIMs. Another paper was released to provide recommendations on the applicable reserve price, band plan, block size, quantum of spectrum to be auctioned and associated conditions for the spectrum auction in the 37-37.5 GHz, 37.5-40 GHz, and 42.5-43.5 GHz bands.
Earlier, in September 2023, TRAI had released a consultation paper seeking comments on draft regulations for implementing a rating framework for buildings and areas to improve digital connectivity and the quality of service (QoS) inside buildings for a seamless consumer experience.
Some of the key recent recommendations released by TRAI are as follows:
- Telecommunication infrastructure sharing, spectrum sharing and spectrum leasing: TRAI has recommended that telecom service licensees be permitted to share both passive and active infrastructure, such as towers, electrical equipment and dark fibre, with all types of providers. Future projects under the Universal Service Obligation (USO) Fund should require service providers to transparently share passive infrastructure with at least two other telecom service providers. Even existing projects should encourage similar practices. The Department of Telecommunications (DoT) should also permit inter-band spectrum sharing and explore authorised shared access for government-assigned spectrum. Finally, leasing of access spectrum among providers should be allowed to optimise resource use.
- Encouraging innovative technologies, services, use cases and business models through a regulatory sandbox: These recommendations act as a foundation for promoting innovation, ensuring legal compliance, and creating a safe and effective environment for digital communication. Many innovative telecom services need to be tested under various configurations, network conditions and user behaviours for a comprehensive evaluation. However, existing lab testing and pilots are limited in scope. In contrast, a sandbox test environment replicates a wide range of real-world scenarios using real-time data, enabling controlled testing and development of state-of-the-art technologies.
- Adoption of embedded SIM for M2M communications: 5G service roll-out has expanded the scope of M2M applications across various sectors. The recommendations, partially accepted by the government, aim to streamline the regulatory landscape for M2M-embedded SIMs in India with an emphasis on ensuring security through proper know-your-customer processes. TRAI has also recommended a framework for profile switching of eSIMs.
- Introduction of calling name presentation service: The recommendations address the need for the calling line identification presentation supplementary service, which allows the telephone number of the calling party to be displayed on the called party’s device when they receive an incoming call.
- Promoting networking and telecom equipment manufacturing in India: These recommendations aim to move beyond the concept of domestic production and focus on local value addition in the global value chain.
- Introduction of digital connectivity infrastructure provider authorisation under the unified licence: In these recommendations, the scope of infrastructure providers has been expanded to include establishing, maintaining and operating all equipment for wireline access, radio access and transmission links, except for core equipment and spectrum holding.
How would you describe India’s 5G journey? How has TRAI supported the expansion of 5G in the country?
India has witnessed the fastest growth in 5G roll-out, which started in October 2022. During the past one and half years, telecom service providers in India have rapidly expanded 5G services, covering most parts of the country. As of April 2024, there are 169 million 5G wireless data subscribers with a combined 5G data usage of 3.51 million terabytes. The total number of 5G base stations stands at 442,936.
For the implementation and roll-out of 5G in India, TRAI released recommendations on the “Auction of spectrum in frequency bands identified for IMT/5G” in April 2022. Based on these recommendations, DoT conducted spectrum auctions in July-August 2022, following which 5G was commercially launched in October 2022.
To identify, develop and proliferate telecom-driven use cases across different sectors, TRAI recommended the formation of a 5G-dedicated inter-ministerial working group. In addition, it recomended setting up telecom innovation centres in alliance with different academic institutions and ministries to develop 5G use cases and applications for different sectors such agriculture, medicine, manufacturing, infrastructure and power. DoT should act as the nodal ministry to monitor and coordinate the activities of these centres.
What are your views on the Telecommunications Act, 2023?
The Telecommunications Act, 2023 is a forward-looking legislation that caters to the modern telecom landscape. It lays a strong foundation for the future growth and development of the sector, ensuring that India remains competitive on the global stage. The act has the following implications:
- The act’s clear definitions and streamlined processes will reduce uncertainties and improve investor confidence.
- The provisions for right of way (RoW) and common ducts will significantly accelerate the deployment of telecom infrastructure.
- The emphasis on national security and public safety is the need of hour. Ensuring the security of telecom networks is paramount, especially in the current global scenario where cyber threats are on the rise.
- By expanding the scope of the USO Fund, the act encourages innovation and the development of new technologies. This will help India stay at the forefront of global telecom advancements.
- The act’s focus on inclusive service delivery ensures that even the most remote and underserved population benefits from telecom services.
- The act introduces a new dispute resolution framework, aiming to eliminate litigations in the sector.
- It addresses long-standing RoW obstacles by simplifying the process and streamlining approvals, reducing administrative hurdles.
In your opinion, what are some of the major challenges that the sector currently faces?
Despite significant progress, infrastructural challenges persist in rural and remote areas. To address these, TRAI issued recommendations in 2023 to improve telecom infrastructure in Himachal Pradesh, the northeastern states and Ladakh.
The increasing number of users and growing data consumption have led to network congestion and QoS issues. With services such as IP telephony, OTT and CDNs relying on the telecom backbone, maintaining high-quality service and managing traffic remain persistent challenges.
Lastly, emerging issues such as cybersecurity, data protection, e-waste management, reducing dependence on fossil fuels, and aligning various rural development programmes to achieve digital universalisation have overlapping areas that require regulators and agencies to collaborate.
What will be TRAI’s priorities for 2024 and beyond?
- Implementation of the regulations on QoS benchmarks for access (wireless), access (wireline) and broadband (wireline) services
- Efforts to curb UCC calls, spams, etc.
- Review of the current licensing framework in view of the Telecommunications Act, 2023
- Continued collaboration with other sectoral regulators
- Gaining insights into rapidly evolving infrastructure and service-specific models
Going forward, what trends will shape the future of the sector?
The future of the Indian telecom sector is promising. The 5G roll-out is expected to continue at a rapid pace, and with it, IoT adoption is set to gain significant momentum, transforming various sectors through real-time data collection and analysis. Significant investments are also expected in cloud computing, AI and edge computing to enhance network efficiency. Open network architectures will see increased reach and penetration, enabling collaboration among multiple vendors and domains on cutting-edge technologies and devices.
The Indian government is focused on enhancing digital infrastructure, particularly in rural areas. The increasing number of internet users and growing data consumption in rural India will drive the need for robust infrastructure and innovative solutions to bridge the digital divide. Enhanced satellite capabilities, with the introduction of NGSO satellite systems — low earth orbit and medium earth orbit — will improve connectivity in remote areas and sparsely populated areas across the country.
Further, initiatives such as the production-linked incentive scheme aim to boost domestic manufacturing of telecom products.
