The Indian telecom sector has witnessed several important developments during the past year, marked by the introduction of the draft National Telecom Policy, 2025 and the National Broadband Mission (NBM) 2.0. Industry experts discuss the key milestones of the sector, 5G monetisation prospects, the evolving satcom landscape, the major challenges and the way forward…
How would you assess the progress in the Indian telecom sector over the past one year? What have been the key milestones?
Akhil Gupta
The past year has seen significant progress in the telecom sector. The key highlights of the year include the deeper penetration of 5G networks and some repair in tariffs, leading to better financial performance of the sector.
“The key focus areas for telcos in the coming year must be continued repair of ARPUs and deeper penetration of broadband services” Akhil Gupta
T.V. Ramachandran
As one who has been closely involved with Indian telecommunications over the past 31 years, I feel privileged to offer a few observations on the country’s telecom journey since September 1994. India’s story has been one of unparalleled interplay of the forces of good policymaking, enabling regulations and dynamic entrepreneurship. From time to time, many inadvertent slips were made by different stakeholders; however, what is unique about the Indian chronicle is the continuous dialogue between the differing forces and the way that steered the sector forward in a remarkable manner, adapting to changing times and addressing various needs.
The year 2024-25 has been no exception to the above play, and has witnessed incremental but highly significant improvements that have initiated transformational developments, setting the stage for the next era of digital growth. Noteworthy milestones included operationalisation of the historic Telecommunications Act, 2023, through multiple rules, including those on right of way (RoW), telecom cybersecurity and the enhanced scope of Digital Bharat Nidhi, the finalisation of BharatNet Phase III, implementation of the RoW rules (which is supercritical for achieving high speed), high-capacity connectivity through fiberisation and initiation of the delicensed lower 6 GHz band. The last named is a game changer, enabling next-generation Wi-Fi 6E and Wi-Fi 7 and paving the way for multi-gigabit speeds, ultra-low latency and massive device capacity, transforming our broadband quality of experience in homes, offices and public spaces.
The Telecom Regulatory Authority of India’s Rating of Properties for Digital Connectivity Regulations, 2024, effective October 25, 2024, are key steps in integrating digital connectivity provisions into building standards. As 80 per cent data usage occurs indoors, this step will not only enhance the consumer experience but also embed connectivity into the very fabric of urban planning and real estate development.
Satellite communications (satcom) also grew apace, with several new players entering with new technologies, which are needed for addressing the digital divide of about 65 per cent.
Equally important are the advances under the PM-WANI initiative, where tariff rationalisation and the removal of restrictive commercial agreements have reignited hope for the growth of public data offices (PDOs) and public data office aggregators (PDOAs).
Looking ahead, India’s ambitions in 6G have been crystallised through the Bharat 6G Alliance, which seeks to secure a 10 per cent share of the global 6G patents. The combination of advanced terrestrial networks, satellite broadband, next-gen Wi-Fi and integrated building-level connectivity standards will form the backbone of an inclusive, high-capacity digital infrastructure. The past year’s progress is, therefore, not just about extending networks, it is about laying a multi-technology foundation on which the aspirations of a fully digital, economically empowered India can confidently stand.
“India is already positioning itself as a global leader in 6G, targeting 10 per cent of global 6G patents and building the supporting innovation ecosystem” T.V. Ramachandran
Manoj Kumar Singh
India’s telecom transformation over the past year represents a paradigm shift from connectivity provider to comprehensive digital infrastructure enabler. With 0.47 million 5G base transceiver stations now covering 779 out of 783 districts, we have achieved unprecedented deployment velocity that positions India among the global 5G leaders.
The sector’s foundation – 0.83 million towers serving 1.2 billion subscribers, with 131.76 per cent urban teledensity – demonstrates remarkable scale. But the real achievement lies in rural penetration – 99 per cent 4G coverage across 0.6 million villages, with 68,151 villages already equipped with 5G infrastructure. This represents inclusive digital transformation, not merely urban advancement.
BharatNet’s success in connecting 218,347 gram panchayats through 0.42 million route km of fibre validates our convergent infrastructure approach. The establishment of 104,574 Wi-Fi hotspots demonstrates our last-mile connectivity commitment, while 0.12 million fibre-to-the-home connections ensure sustainable rural digital access.
The Telecommunications (Right of Way) Rules, 2024, mark a crucial regulatory evolution. Effective January 2025, these rules replace fragmented frameworks with unified procedures, simplifying infrastructure deployment while maintaining security standards. The Telecommunications (Telecom Cyber Security) Rules, 2024, establish robust data protection mechanisms essential for national digital security.
Structural reforms have gained momentum through multiple policy initiatives. The unified e-service portal for centralised RoW permissions creates a collaborative institutional mechanism, uniting the central and state governments, local bodies and service providers through streamlined interfaces. The appointment of nodal officers as mandated under Section 14(4) of the Telecommunications Act, 2023, ensures cohesive action frameworks for infrastructure deployment.
Property tax exemptions under Section 14(3) of the Telecommunications Act, 2023, represent transformative policy recognition – towers are no longer considered part of property for taxation purposes. Maharashtra has already implemented this by directing its local bodies to grant complete exemptions for both existing and future installations, paving the way for faster and more widespread digital infrastructure deployment.
The Supreme Court’s historic judgment, classifying telecom towers as movable property and granting input tax credit (ITC) eligibility, transforms digital infrastructure economics. Towers now qualify as capital goods under the Cenvat Credit Rules, 2004, enabling ITC claims under the GST Act provisions.
Strategic dialogue mechanisms have strengthened through stakeholder advisory committee meetings initiated by Communications Minister Jyotiraditya Scindia with infrastructure providers and ISPs, positioning India as a telecom infrastructure hub while enhancing ease of doing business.
The draft National Telecom Policy, 2025, envisions India’s transformation to a digitally empowered nation and global telecom technology leader by 2030.
The National Broadband Mission (NBM) 2.0, building on NBM 1.0 experiences, propels India to digital transformation and global competitiveness through high speed broadband and meaningful connectivity for all, with a strong focus on sustainability.
The Central Electricity Authority’s (CEA) 5th Amendment Regulations, 2025, envisage smart meter integration for entities with open access at voltage levels not exceeding 650 V, standardising metering requirements across the electricity sector, while supporting telecom infrastructure’s energy management capabilities.
Dr Mahesh Uppal
Although there has not been a qualitative change as such, the milestones have been incremental. For instance, with 5G, we have seen massive expansion – we have achieved close to 80 per cent geographic coverage by 5G. Similarly, with BharatNet, the roll-out has been faster, although there is still some way to go. There has also been a massive demand for towers with the 5G roll-out, since the technology requires different kinds of infrastructure. This has led to incremental growth in the number of towers being deployed.
“The success of satcom will depend crucially on the kind of regulatory treatment it receives” Dr Mahesh Uppal
What are the key challenges that remain unaddressed?
Akhil Gupta
The overall financial performance of the sector is still quite weak. The tariffs and the ARPU need to be further repaired for the sector to get into a healthy situation. As the next step, the ARPU for the mobile segment must reach Rs 300 per month as soon as possible. Unless the sector’s financial performance improves, further investment for deeper penetration as well as new technologies will remain a challenge.
5G has reached a significant part of the country, but still has more scope for coverage in the hinterland. The large amount of funds lying under the erstwhile Universal Service Obligation Fund needs to be provided to operators to cover what would otherwise be unviable geographies for 5G. Broadband penetration needs to improve with the aim of access to internet for every Indian citizen, at the earliest.
T.V. Ramachandran
The digital divide is still high at about 65 per cent and this has to be bridged with universal and meaningful connectivity (UMC). We believe that fibre-based fixed broadband, satcom and public Wi-Fi will play a crucial role in addressing this requirement.
Fibre-based fixed broadband for rural areas should be incentivised, both on the supply and the demand sides, through a license fee waiver for service providers and through a suitable direct benefit transfer (DBT) scheme for consumers in rural areas.
On private 5G, we strongly advocate immediate allocation of direct spectrum at nominal prices (to just cover the cost of administration) to private enterprises. Telcos’ strategy should be to get into this segment with competitive quality and price offerings of their services.
Consumer broadband through satcom should be mainstreamed through expeditious NGSO (non-geostationary orbit) licensing norms and an early decision on spectrum pricing at nominal prices (to just cover the administration cost).
While the contracts for BharatNet Phase III have been awarded, there is a need for close monitoring of the roll-out so that there are no time and cost overruns. Other measures that are needed include expeditious growth in advanced modern Wi-Fi, namely, Wi-Fi 6E, Wi-Fi 7 and Wi-Fi 8, in the future. We should also concurrently give a big governmental push for the adoption of PM-WANI to take care of Wi-Fi security, smooth roaming between Wi-Fi hotspots and general user-friendliness.
Lastly, we should advocate demand forecasting and use-case identification for 6G to avoid business viability challenges such as those we faced with 5G.
Manoj Kumar Singh
Despite remarkable progress, systemic bottlenecks persist, threatening deployment velocity and investment efficiency. The most critical challenge is incomplete portal integration/implementation – state RoW portals remaining disconnected from the central RoW portal creates data silos and procedural inconsistencies that undermine digital governance objectives.The core issue remains regulatory non-alignment – despite national effectiveness from January 1, 2025, many states have not implemented the Telecommunications (Right of Way) Rules, 2024, creating a disconnect between evolved national standards and operational state-level procedures.
The slow process of time-bound deemed approval creates indefinite processing delays. Without automatic approval timelines, applications remain in administrative limbo, particularly affecting urban expansion where local bodies lack structured deadline frameworks. Processing delays exceeding 150 days in some states such as Karnataka, West Bengal, Tamil Nadu and Kerala that have not aligned with the rules, indicate severe verification bottlenecks at the field level.
Legacy compliance requirements on private properties present fundamental contradictions. State portals continue network operation centre-based processes requiring registered agreements, building plans and property tax receipts – directly contradicting the 2024 rules’ simplified intimation-based approach for private property installations.
Financial process inadequacies compound these challenges. Fee refund mechanisms for rejected applications do not exist, creating direct losses for infrastructure providers. The inability to resubmit corrected applications without additional charges particularly impacts smaller providers and market entrants.
Street furniture deployment guidelines remain absent, despite cataloguing 26.5 million units nationwide. The strategic value of 23.9 million electric poles, 306,413 government buildings and 26,880 bus terminals as integrated service platforms remains unrealised due to deployment guideline gaps.
“India’s telecom transformation represents a paradigm shift from connectivity provider to comprehensive digital infrastructure enabler” Manoj Kumar Singh
Dr Mahesh Uppal
One of the challenges is that the statistics still equate the number of connections with the number of users, whether for broadband or mobile services. In terms of unique users of mobile telephony or broadband, we still have a long way to go. Roughly 30 per cent of the population does not yet have access to the internet. What we often overlook is that while India has one of the largest connected populations in the world, it also has one of the largest unconnected populations. That does not mean progress has not been impressive, it has, but given our population size, the gaps remain significant. Rural and remote areas still struggle, and even where connectivity exists, bandwidth availability differs widely.
We also continue to face issues with data usage. Around 200 million people still rely on 2G services, which means they are not active internet users, because 2G and feature phones provide minimal support for data. These gaps are not only about affordability but also digital literacy and other structural challenges.
Another challenge lies in digital convergence. Disputes continue between telcos and OTT players about their respective domains, regulatory burdens, and whether OTT services should be licensed. The new Telecommunications Act, 2023, did not resolve this either. Its definition of telecommunications covers everything from a video call to setting up a tower, without distinguishing between infrastructure providers and content providers. This lack of clarity continues to fuel industry disputes.
Similar uncertainty exists in satcom. While India has shown interest in enabling satcom, policy remains ambiguous. Spectrum for satcom will not be auctioned, but we do not know how it will be allocated administratively, or whether satcom players will be treated as competitors to terrestrial telcos, or as new entrants. This matters because regulators in other markets differentiate between incumbents with significant market power and new players, but in India, we do not yet have that clarity.
Another looming concern is competition. The market is close to becoming a duopoly, with only two strong players while the others remain weak or vulnerable. In many countries, consumers benefit from indirect competition through resellers or MVNOs, but in India, such models have not taken off. This limits consumer choice and reduces pressure on the incumbents.
The transformation of telcos into techcos can also be considered a challenge because the telecom business of operators is regulated in a particular way; they often keep these ventures outside their licensed operations. In fact, with the shift from licensing to authorisation, one would expect greater freedom, but in practice, there has been little change in how the telecom business runs or how consumers are served. So, while diversification is happening, it is not necessarily through their core telecom business.
What are your views on 5G monetisation in India? What should telcos’ strategy be in 
this regard?
Akhil Gupta
5G monetisation has, so far, been suboptimal and has been the cause of the poor financial performance of operators. One avenue for 5G monetisation that is becoming clear now is fixed wireless access (FWA) broadband on 5G networks. We are already seeing significant growth in the segment.
T.V. Ramachandran
The adoption of 5G is sizeable but not high – being about 300 million subscribers, that is only 26 per cent of the total mobile subscribers by March 2025 – two and a half years after its launch. A lack of use cases has been the issue, but now 5G FWA is seen to be a good use case in difficult terrain where deploying fibre could be challenging. However, the potential of this use case is now tending to get exaggerated; we need to remember that the global finding, after considerable usage, is that FWA can only be an interim solution to reach high-quality connectivity. Robust, resilient and reliable quality broadband for an advanced digital economy can only be achieved with fibre-based fixed broadband. Telcos have to work towards that goal. The telecom market should see more competition in the near future from Bharat Sanchar Nigam Limited and Vodafone idea with respect to both 4G and 5G.
Manoj Kumar Singh
5G monetisation requires fundamental strategic reorientation from connectivity provision to ecosystem orchestration. With projections of 350 million 5G subscriptions by 2026, representing 27 per cent of mobile subscriptions, and a potential GDP contribution of $180 billion by 2030, the opportunity transcends traditional revenue models.
Cross-sectoral collaboration represents the primary monetisation avenue. 5G’s transformative power lies in creating unified digital nervous systems capable of processing massive data streams from millions of endpoints with near-zero latency. This enables telcos to become integration partners across the mobility, energy, healthcare and manufacturing sectors.
The EV ecosystem presents immediate opportunities. With 1.9 million EV units sold in 2024-25, representing a 24.5 per cent year-on-year growth, and 25,202 charging stations deployed, 5G enables intelligent grid balancing and energy trading capabilities. Telcos can monetise this opportunity by transforming charging infrastructure from passive power delivery to active grid participants.
Small cells emerge as critical monetisation enablers through network densification. Their versatility for lamp post and building fasade installation, combined with targeted high-density coverage, creates new revenue streams while reducing deployment costs through existing structure utilisation.
In addition, in-building solutions (IBS) represent a substantial untapped potential. With 85 per cent of data traffic and 70 per cent of voice traffic generated indoors, robust IBS deployment creates premium service opportunities. Factory-prefabricated components ensure quality while reducing operational complexity.
A strategic approach should focus on platform monetisation rather than connectivity pricing. By enabling sector-specific solutions – autonomous driving, industrial IoT and smart city applications – telcos can capture value from digital transformation outcomes rather than data consumption metrics.
Dr Mahesh Uppal
It has long been known that, for the end-user, 5G’s relevance right now is mostly for faster downloads – whether videos, movies or similar content. The other features of 5G, such as low latency or strong support for the IoTs, are not something the average user is particularly engaged with.
However, the opposite applies to the industry. Businesses clearly recognise the huge potential of 5G. If you are running a factory, a logistics company, or even a medical enterprise, you can see the many ways in which 5G can transform your operations and profitability.
That is the contrast. For individuals, the use of 5G will probably remain limited. But for forward-looking businesses, 5G is essential, and its use cases will keep expanding. Given that telcos already run large enterprise businesses, the economics and monetisation of 5G will depend heavily on this segment.
This is also where telcos have far greater pricing power and more flexibility to customise solutions for enterprises. I am sure telcos have factored this in while deciding how much to invest in 5G and at what pace.
How do you see satcom impacting the country’s telecom landscape?
Akhil Gupta
Satcoms will complement terrestrial networks and is unlikely to compete with them. The reasons are lack of capacity and the low cost per GB being offered by terrestrial networks on 5G, which translates into about 10-12 cents per GB. It is currently not possible for satcom to match this kind of low price. However, it is interesting to note that in the developed world, where the price per GB charged by mobile operators is very high, satcom has started competing successfully in the retail broadband market.
T.V. Ramachandran
India’s vast and diverse geography presents significant opportunities for satcom. While urban areas have developed strong telecom infrastructure, rural regions – home to over 65 per cent of the country’s population – remain largely underserved. Satcom can help bridge this connectivity gap by providing internet access to remote areas and facilitating essential services such as education, healthcare and agriculture.
Satellite services are extremely crucial for inclusive development, as they aim to “connect the underconnected”, whether in rural or urban areas. Terrestrial networks face roll-out challenges in many remote and difficult terrains. Satcom can effectively address this problem. Today, India has only a small fraction of the satcom connectivity that the US, Europe or Asia have. Hence, there is a vast scope for the growth of the satcom sector. Our sectoral revenues are only about a fifth of the target level.
Initiatives such as Digital India and BharatNet aim to connect every village to the internet and satcom will be essential not only for achieving this goal but also for disaster management since natural calamities often disrupt terrestrial networks. Satcom is also vital for defence and security operations in remote and high-altitude border regions.
Manoj Kumar Singh
Satcom integration represents a critical convergence point for the telecom landscape, particularly for achieving universal connectivity in geographically challenging terrain. Satcom will complement terrestrial networks by extending 5G coverage to remote areas where fibre deployment remains economically challenging, creating ubiquitous connectivity ecosystems.
Dr Mahesh Uppal
Much will depend on how much regulatory support it gets. If satcom is allowed to realise its full potential, it could make a significant impact on the market over the next few years. That said, my view is that right now, satcom poses no serious threat to telcos.
The economics of satcom is changing very rapidly, so in some ways I understand why telcos are paranoid about what it might mean for their business. But that paranoia, at least at present, is misplaced. There is no country where satcom has managed to overwhelm terrestrial networks.
What it can do, if regulators handle it properly, is fill the gaps in rural and remote areas. That is something we should actively promote. Satcom will also be hugely important for the IoT segment, although how far that goes remains to be seen. Ultimately, the success of satcom will depend crucially on the kind of regulatory treatment it receives.
What will be the key focus areas for telcos in the next two years?
Akhil Gupta
The key focus areas for telcos in the coming year must be a continued repair of ARPUs and deeper penetration of broadband services, mainly on FWA, which would also result in the monetisation of the large investment that has already been made in 5G.
T.V. Ramachandran
With skyrocketing data consumption and increasing smartphone penetration, the telecom sector’s outlook is inextricably linked with the potential and performance in the broadband segment and the use of emerging technologies such as AI, machine to machine and IoTs in various segments including health, transportation, safety, security and agriculture.
There would be a greater push for fibre-to-the-building/kerb/home so as to improve in-building connectivity through high speed high-capacity fixed broadband, which can cater to 20-30 times more data than mobile broadband. Hopefully, the ongoing implementation of the RoW rules, as finalised last year, would provide an impetus for the growth of fixed broadband.
Finalisation of delicensing of the lower 6 GHz spectrum band will enable modern and advanced Wi-Fi such as Wi-Fi 6E and Wi-Fi 7 to complement mobile broadband inside buildings. In addition to fiberisation, telcos will benefit from the growth of data centres, content delivery networks and Internet exchange points (IXPs) in the Indian market, increasing the quality of service.
The path to sustainable growth will require telcos to diversify monetisation strategies through enterprise and sector-specific solutions leveraging 5G, AI, IoT and edge computing for various verticals.
Manoj Kumar Singh
Immediate regulatory harmonisation tops the strategic priorities. Comprehensive government orders mandating the implementation of the Telecommunications (Right of Way) Rules, 2024, across all departments and local bodies are essential. This includes superseding conflicting state requirements and establishing definitive frameworks for RoW applications with specific compliance timelines.
The unified e-service portal’s full migration remains critical to ensuring that all state and municipal portals integrate with the central RoW portal to eliminate data silos. The nodal officers appointed under Section 14(4) of the Telecommunications Act, 2023, must be empowered with clear mandates and accountability mechanisms for streamlined infrastructure deployment.
Moreover, smart meter integration alignment with the CEA’s 5th Amendment Regulations, 2025, will standardise energy management across telecom infrastructure, enabling optimised power consumption tracking and renewable energy integration. The smart meter requirements for entities not exceeding 650 V will enhance grid stability, while supporting the telecom sector’s sustainability objectives.
Further the time-bound deemed approval process must be expedited. Automatic approval of applications beyond specified timelines should function smoothly, ensuring applicants are not penalised due to administrative delays. Strict adherence to category-specific timelines with built-in fail-safe mechanisms is essential.
Structured capacity building requires mandatory training programmes for all RoW processing officials, covering the 2024 rules, digital workflows and regulatory provisions. Certification requirements and continuous education programmes will maintain current knowledge of evolving infrastructure requirements. Besides, awareness programmes and workshops for municipal corporations, gram panchayats and other local bodies are essential to enhance their understanding and streamline the deployment of robust infrastructure.
Awareness programmes must also extend to the state electricity boards, ensuring they are fully informed and aligned with the Telecom RoW Rules, 2024, to support faster electrification of telecom infrastructure.
Besides, district and municipal corporation-level coordination mechanisms need to be established through monthly RoW review committees with an inter-agency bottleneck resolution authority. Performance dashboards providing transparent monitoring of processing times, approval rates and rejection patterns will ensure accountability.
Another important focus area will be financial process reforms under Chapter 2, Rule 7(5) of the RoW Rules 2024, which deal with applications on public property. Upon rejection of permission by the public entity, 90 per cent of the fee paid under Sub-rule(4) of Rule 6 must be refunded to the facility provider within 15 days. Endorsing and ensuring timely execution of this process will reduce the financial burden on infrastructure providers and encourage greater compliance.
Stakeholder advisory committee meetings initiated by the communications ministry create ongoing dialogue mechanisms between the government and industry, ensuring policy responsiveness to operational realities while maintaining strategic direction towards making India a telecom infrastructure hub.
Dr Mahesh Uppal
Telcos have already invested in huge capacity, so their focus now has to be on expanding data usage. That is essentially their main commodity. Whether it is voice or data, what they are really selling is connectivity and internet access.
For enterprises, of course, they provide a broader bouquet of services. But since the larger chunk of their business comes from end-users, the priority will be to drive data consumption. That means having a stake in the growth of content-driven services, platforms such as Netflix and Hotstar, as well as education and health applications that require large amounts of data to function effectively.
Their focus will be on ensuring that data usage rises, which, in turn, fuels the growth of data-heavy applications. In that sense, they have an indirect interest in encouraging more streaming, more online learning, more telehealth – anything that drives consumption. The challenge will be in how creatively they can enable that growth.
On the enterprise side, the task will be to provide increasingly customised business solutions, something they are already doing but will need to scale further.
What key trends are likely to shape the future of the Indian telecom sector?
Akhil Gupta
Telecom, as we all know, is an ever-evolving industry. The demand for data is always increasing, and it appears that it will continue to do so, led by more supply. 6G is a future trend that could significantly increase the capacities available. However, it would be prudent to space it out to ensure that the large investments made in 5G are well utilised before the introduction of 6G.
T.V. Ramachandran
Some of the most promising technologies for the future include AI and AI-enhanced networks, blockchain technology, quantum technology, 6G, Li-Fi, FSoC (free-space optical communications) and Wi-Fi 8.
While 5G continues to expand, India is already positioning itself as a global leader in 6G, targeting 10 per cent of global 6G patents and building the supporting innovation ecosystem. Private 5G is direly needed in enterprises and industries to enhance India’s global competitiveness. Indian telecom is set to continue its high-growth trajectory, which will include satellite communications, modern Wi-Fi, for example, Wi-Fi 6E and Wi-Fi 7 coupled with PM WANI-based public Wi-Fi and FTTx plus Wi-Fi combination, amongst several others. In short, the telecom future continues to shine bright.
Manoj Kumar Singh
Single-tower multiple-use represents the most transformative trend reshaping telecom infrastructure into comprehensive utility platforms. This convergent model integrates distributed broadcasting networks, renewable energy ecosystems, mobility service infrastructure, and public safety systems through unified tower platforms.
Multi-utility integration creates distributed broadcasting networks through FM frequency integration, converting towers into hyperlocal broadcasting nodes for community-specific content delivery. Solar panel and wind generation integration establishes distributed energy resources contributing to renewable energy targets, while creating grid contribution opportunities.
EV charging integration leverages existing power infrastructure and strategic locations to accelerate EV adoption, positioning telcos to help in expanding the mobility services market. Emergency alert and public safety integration transforms telecommunications infrastructure into critical civic infrastructure, enhancing disaster preparedness capabilities.
Green energy open access evolution, particularly the 2023, amendments allowing load aggregation, enables telecom operators to combine multiple low-consumption sites meeting 100 kW thresholds. This addresses the fundamental barrier preventing telecom companies from accessing renewable energy through open access mechanisms.
The convergent infrastructure model aligns with the Smart Cities Mission, the National Solar Mission, the National Electric Mobility Mission and Digital India initiatives, creating regulatory support for integrated deployment while ensuring telecom investments contribute to the broader national development goals.
Success requires coordinated planning across utility sectors, standardised mounting systems, integrated power management and unified network monitoring capabilities. Partnership models among telecom operators, energy companies, broadcasting organisations and government agencies will determine implementation success.
This transformation positions India’s telecom sector for sustained growth while addressing critical national infrastructure needs, establishing the foundation for a comprehensive digital transformation, where 5G enables sector redefinition across real estate, healthcare, education and agriculture through ubiquitous connectivity and intelligent infrastructure integration.
Dr Mahesh Uppal
One important trend to watch is whether the market moves towards greater concentration or whether competition increases, directly or indirectly. We already face the risk of a looming duopoly because two of the other players in the market are weak or vulnerable. In my view, the level of competition is not sufficient.
In many other countries, consumers benefit from indirect competition through resellers, such as MVNOs, who buy bulk data from telcos and resell services under their own brands. That has not really taken off in India. The lack of significant growth in MVNOs is something we should pay attention to.
Another area to watch is the growth of fixed broadband, particularly fibre. While India is one of the largest data-using countries in the world, the reality is that we have the world’s largest number of “mobile” data users. An average American household, for example, uses more than five times as much data, but that usage is supported by fibre and cable, both of which remain very weak in India.
Here, regulation also plays a role. For instance, cable TV operators who have the infrastructure to offer broadband are discouraged by AGR rules. If they start providing broadband, they are treated as telecom operators and must share revenues with the government, including revenue from their TV business. That makes the business unattractive. Some operators have set up separate entities for broadband, but overall, we have failed to bring cable players into the mainstream because of regulation.
So, one trend to watch out against is market concentration. Reduced competition eventually hurts consumers through higher prices and lower quality, and it also reduces incentives for innovation.
Similarly, how we treat satcom players is another factor. While we are making all the right noises, there is little evidence of tangible steps being taken. The same applies to our approach to OTT services. Many of the disputes that have plagued the sector for 10-20 years remain unresolved, and that trend is not encouraging.
That said, there are also many areas where we are moving in the right direction, and the progress is visible. But these challenges and regulatory choices will shape the future of the sector in significant ways.
Sustainability is another important issue, but any major achievement there depends on commercial incentives. Telcos or tower companies will do what is profitable for them. Regulation can influence that behaviour, but only to an extent. For example, a lot of towers require diesel, which is a huge environmental threat. If the government were to withhold access to diesel, it might be good for the environment, but it would also affect consumer services, raise the cost of providing connectivity and, in turn, raise consumer prices. Telecom is politically very important, so there is reluctance to take such deterrent steps.
The move towards green telecom, solarisation and similar efforts, will depend largely on economics, such as how the costs of solar energy and equipment evolve. This has been our experience in the past: telcos and towercos will adopt what makes commercial sense, and regulators understand this.
But the environmental problems are real. Increasing network growth and rising data usage have already had a significant impact. Regulation will be one factor to watch, though how effective it will be is uncertain.
