India’s telecom sector entered a decisive implementation and construction phase this year, as regulatory policy finally aligned with three years of deep foundational and preparatory work. Moving beyond mere consolidation, the industry is now navigating a complex technological transition. The most consequential policy shift occurred in satellite communications (satcom), with the government cementing administrative, non-auction allocation of satcom spectrum, the Telecom Regulatory Authority of India (TRAI) finalising its pricing recommendations, and the Department of Telecommunications (DoT) notifying the draft Telecommunications (Spectrum Assignment by Administrative Process) Rules, 2026.
On the terrestrial side, the Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026, replaced the decades-old licensing regime. Concurrently, 5G continued its rapid scale-up, operators began laying the groundwork for 5G-Advanced, and the sector initiated sovereign institutional efforts for 6G. Meanwhile, tariff pressure, the escalating need for optical fibre cable (OFC) deployment, spam risks and questions over BharatNet’s actual utilisation kept infrastructure and consumer experience firmly in focus.
A look at the key trends shaping the telecom sector over the past year and the road ahead…
Satcom edges towards commercial launch
The year’s biggest structural development was the government’s reaffirmation that satellite spectrum will be assigned administratively rather than through auction, resolving a prolonged dispute between global satellite operators and terrestrial telecom providers. Building on TRAI’s May 2025 recommendations, which proposed a spectrum usage charge of 4 per cent of adjusted gross revenue or Rs 3,500 per MHz annually (whichever is higher), plus an additional Rs 500 per urban subscriber for non-geostationary orbit services, DoT published the draft rules for a 30-day public consultation window that closed in July 2026.
Crucially, the draft rules introduced a mandatory security clearance for any consumer-facing satellite broadband or satellite phone service. Starlink, Jio-SES (operating as Orbit Connect India) and Eutelsat OneWeb have all secured satcom licences, with Starlink and Jio-SES still navigating security clearances and awaiting final spectrum allocation as of mid-2026. In a significant technological milestone, the Indian National Space Promotion and Authorisation Centre, working with the Indian Space Research Organisation and DoT’s Wireless Planning and Coordination Wing, validated Reliance Jio’s proposal for a constellation of roughly 1,600 low Earth orbit satellites in July 2026. This puts a homegrown mega-constellation on a comparable footing with global systems, while Amazon’s Project Kuiper remains at the earlier stages of the licensing process. The pace at which the government has moved on satcom reflects a definitive pivot towards treating satellite connectivity as core national infrastructure.
New authorisation regime for telecom
In June 2026, the centre notified the Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026, operationalising a core provision of the Telecommunications Act, 2023. The rules replace the legacy, licence-heavy framework with a codified authorisation regime covering wireline and wireless access networks. More importantly, it introduces formal definitions for access spectrum, captive non-public networks, cable landing stations, core telecom networks and Earth stations in motion concepts that have grown vital as telecom infrastructure converges with hyperscale cloud computing and data services.
Meanwhile, the draft National Telecom Policy, 2025 (NTP-25) remained under finalisation. Anchored in six strategic missions, NTP-25 targets 100 per cent 4G and 90 per cent 5G population coverage, fibre connectivity to 80 per cent of towers, 100 million fixed broadband connections and one million public Wi-Fi hotspots by 2030. It seeks to double the information and communication technology (ICT) sector’s contribution to the country’s GDP to 11 per cent, attract annual investments of Rs 1 trillion-Rs 1.5 trillion and create a million new jobs.
5G to 5G-Advanced: The monetisation imperative
India’s 5G roll-out remained among the fastest globally. By mid-2026, coverage extended across virtually all states and union territories, with roughly 523,000 5G base transceiver stations installed and subscriber numbers crossing 400 million.
With the capital-intensive roll-out phase largely complete, telecom service providers (TSPs) pivoted decisively towards monetisation and the technological bridge to 5G-Advanced (3GPP Release 18). Fixed wireless access (FWA) emerged as the dominant commercial use case, with Jio and Airtel aggressively expanding FWA base stations to capture the home broadband market, while Bharat Sanchar Nigam Limited (BSNL) took a differentiated approach with its Quantum 5G FWA offering.
However, the real revenue shift hinges on the enterprise segment. Private 5G deployments, ultra-reliable low-latency communications and network slicing gained early traction as operators transitioned to 5G standalone (SA) architectures. Operators are increasingly shedding the traditional “telco” identity to position themselves as “techcos”, deploying artificial intelligence (AI)-driven network automation and edge computing to diversify revenue away from a saturated, low average revenue per user consumer market.
The hyperscale and OFC bottleneck
As AI workloads, cloud adoption and data localisation requirements under the Digital Personal Data Protection Act, 2023 accelerate, demand for hyperscale data centres has surged. Operational capacity in 2025-26 hovered between 1.3 GW and 1.7 GW, with projections indicating an expansion to 4-8 GW by 2030. Large technology players deepened their commitments. Google, for instance, announced a $15 billion, five-year investment in an AI hub in Visakhapatnam in collaboration with Airtel and AdaniConnex. Furthermore, Jio is developing a new subsea cable landing station at Digha, West Bengal to support this expanding base.
Yet, this hyperscale boom and 5G densification face a critical physical bottleneck: OFC networks. Wireless networks are only as robust as their wireline backhaul. Tower fiberisation currently stands at only around 36 per cent, drastically short of the NTP-25 target of 80 per cent by 2030. Accelerating deep fiberisation and resolving ongoing right-of-way bottlenecks is now the absolute prerequisite for both 5G-Advanced functionality and future AI infrastructure.
Expanding ambits of the Bharat 6G vision
On the research front, the government’s Bharat 6G Vision translated into concrete action. India is shifting its strategic posture from being a mere consumer of global telecom standards to a creator of 6G intellectual property. The Telecommunication Engineering Centre partnered with IIT Bombay to collaborate on 6G architecture, AI-driven networks and satellite communications, while the Telecom Technology Development Fund approved 104 projects worth Rs 2.71 billion for 6G-related research as of February 2026.
To lead in the 6G era, domestic research and development spending – currently under 1 per cent of revenue compared to the 15-25 per cent global benchmark – must scale dramatically, specifically in areas like terahertz spectrum utilisation and integrated sensing and communication.
BharatNet expansion outpaces infrastructure utilisation
BharatNet continued its physical expansion, with around 221,000 gram panchayats made service-ready by June 2026, and 719,000 km of OFC laid under the Rs 1.39 trillion Amended BharatNet Programme. However, a parliamentary standing committee flagged a persistent gap between infrastructure creation and actual usage. As of February 2026, only 78,899 of nearly 264,000 gram panchayats had operational points of presence, and just 948,000 fibre-to-the-home connections were active against a goal of 15 million. Overcoming difficult terrain, procurement delays and agency disputes through state-wise audits will be vital to converting this built infrastructure into actual rural digital inclusion.
Focus on building consumer trust and manufacturing momentum
Spam communications remained a pressing challenge. TRAI disconnected 1.88 million numbers linked to unregistered telemarketers and imposed penalties of over Rs 1.54 billion on operators. Airtel reported blocking over 70 billion suspected spam calls using AI-powered tools, while Jio, Vi and BSNL rolled out their own network-level protections.
On the manufacturing front, India’s telecom ecosystem matured under the production-linked incentive (PLI) scheme, achieving roughly 60 per cent import substitution in critical components like antennas and gigabit passive optical network equipment. The government is targeting a $25 billion opportunity in telecom component manufacturing, proposing the extension of PLI benefits to satcom products in alignment with the broader India Semiconductor Mission.
Outlook
The outlook for India’s telecom sector remains firmly positive, anchored by the impending commercial launch of satellite broadband, the maturation of the new authorisation regime, and the systematic progression from 5G to 6G. However, the sector is entering a phase where structural policy must give way to timely execution.
The coming year will be defined by whether satcom security clearances and spectrum formalities are resolved swiftly enough for mega-constellations to go live, and whether the industry can rapidly scale its OFC networks to handle the impending crush of AI and hyperscale data traffic. Crucially, as operators pivot toward 5G-Advanced and enterprise monetisation, the true measure of success will be India’s ability to transition from an adopter of technology to a global architect of 6G standards.
Kuhu Singh
