Research Report on Growth

of Indian Telecom Sector

[Regulatory and Policy Initiatives]
TABLE OF CONTENTS
Introduction...........................................................................................................................................4
Policy Interventions for Management of Telecom Sector in India.........................................................5
National Telecom Policy-1994......................................................................................................5
National Telecom Policy-1999......................................................................................................6
National Telecom Policy-2012......................................................................................................7
National Digital Communications Policy-2018.............................................................................8
Dispute Settlement Mechanism in Indian Telecom sector: TDSAT....................................................11
Composition of TDSAT...............................................................................................................11
Powers and Jurisdiction...............................................................................................................12
Appeals........................................................................................................................................12
Various Types of Licensees in the Indian Telecom Sector - Licensing Framework............................13
Cellular Mobile Telephone Service.............................................................................................13
Unified Access Service................................................................................................................13
National Long Distance Telephony.............................................................................................14
International Long Distance Telephony.......................................................................................14
Licensing of Internet Services.....................................................................................................14
UL VNO License.........................................................................................................................15
Sharing Infrastructure License.....................................................................................................15
Work from Home Registration....................................................................................................15
IP-1 Registration..........................................................................................................................16
Audiotex / Voice Call / UMS License.........................................................................................16
Growth of the Indian Telecom Sector..................................................................................................16
Market Size..................................................................................................................................16
Investments and Major Developments.........................................................................................17
Government Initiatives................................................................................................................17
Achievements..............................................................................................................................18
Conclusion...........................................................................................................................................18
List of Figures
Figure: 1 Missions under Connect India (SOURCE- http://www.bbnl.nic.in/)..................................10
Figure 2 : Jurisdictional Powers of T.D.S.A.T (SOURCE-https://tdsat.gov.in/)..................................12
Figure 3: Some of the Papers (SOURCE- https://www.trai.gov.in/)..................................................20
INTRODUCTION
The history of telecommunications in India dates back 170 years with the introduction of telegraph
in the 1850s, thereby, making the Indian telecom market one of the oldest in the world.

Innovation and advancement of humankind have transformed this planet into a global village with
telecommunications playing an integral role. Increased convenience and accessibility have certainly
brought people closer and revolutionized the way life operates across the globe, particularly for the
Indian masses.

The Indian telecom market has soared by more than 20 folds in the past two decades registering a
rise of about 1.14 billion users from 2001 to 2020. The sole aim behind presenting this report is to
explore the exceptional journey that sector has gone through. This documentation presents the
story of growth in the context of significant policy changes and regulatory initiatives in the Indian
telecom sector and consequently, its far-reaching socio-economic impacts.

A smartphone penetration rate of about 37% among 1.3 billion people has placed India at the
second position globally in respect to the number of active users. It is indubitable that urban areas
have experienced more positive implications as compared to other areas. To illustrate, urban users
dominate this segment by more than four-folds viz-a-viz other users. Moreover, this sector is
primarily dominated by wireless phones with the wireline phone segment contributing only 3.4% of
the overall subscriber base. Even though internet and broadband subscribers are marginally less, the
number of active users peaked at about 700 million in 2019.

The telecom services generate higher revenue from manufacturing. In India, almost three-fourths of
the domestic telecom consumption is met by imports. Most of the Foreign Direct Investment (FDI)
comes in the segment of the cellular mobile. The growth of this sector has significantly contributed
to Indian economy which is exemplified by employment opportunities, tax revenue, and GDP.
According to government sources, the share of telecom sector as a percent of the total GDP, has
increased from 0.96% in 2000–01 to 6.5% in 2019–20. For instance, the sale of broadband wireless
access licenses in 2015 during the 4G auction roped in US $15 billion which amounted to about 1%
of India’s GDP.
The transformation of the telecom sector within a short span from a government Supremacy to
Private Service Providers as well as Public Sector Undertakings (P.S.U), such as Mahanagar
Telephone Nigam Limited (M.T.N.L) and Bharat Sanchar Nigam Limited (B.S.N.L) has revolutionized
the regulatory and policy environment.

Department of Telecommunications (D.o.T) holds responsibility for providing all other

telecommunication services throughout India except Delhi and Mumbai. Consequently, a Telecom
commission, vested with administrative and financial powers for delegating issues pertaining to
various aspects of telecommunications, was set-up in 1989.

In October 1999, the services portion of DoT was brought under a new Department of
Telecommunications Services (D.T.S). DTS was corporatized as a new entity named BSNL in October
2000. The role of BSNL was to provide telecom services throughout the whole country except Delhi
and Mumbai. BSNL was privatized in February 2002 with the sale of a strategic stake. Production of
telecommunications equipment was terminated in 1991. By and by other value-added services, such
as radio paging, cellular mobile etc. were privatized. A breakthrough in this sector was the
government’s intention to liberalize the telecom sector in the National Telecom Policy resolution of
13 May 1994.

POLICY INTERVENTIONS FOR MANAGEMENT OF TELECOM

SECTOR IN INDIA
NATIONAL TELECOM POLICY-1994
National Telecom Policy (N.T.P) aimed at enhancing investment and involvement from private
players to bridge the resource gap, owing to the lack of same available with the government. It also
enabled liberalization of the telecom sector not only in basic but in value-added services also,
namely “C.M.T.S” (Cellular Mobile Telephone services), Radio Paging, and “V.S.A.T” services. Earlier
this sector was regulated primarily by the government, but with its advent, participation from the
private sector was encouraged in all avenues except in some core services.

The objectives of N.T.P were: -

 Primal focus was on scaling the accessibility of telecommunication services to citizens. In
other words, ensuring the feasibility of telephone on demand.
 Increasing the network coverage across rural areas, particularly villages with the provision of
affordable and reasonable basic telecom services.
  Special attention to quality, removal of consumer complaints, and dispute resolution.
 Planning future projects with the aim of transforming India as a global manufacturing base
and exporter for telecom equipment.
 All options to be contemplated keeping security interests of the country on priority.

In 1994, the telephone density of India (0.8/100 persons) was far lower than the world average
(10/100 persons) with only 24.28% of 576,490 villages having access to basic telecom amenities. In
addition, India also lagged behind other developing nations, namely Malaysia (2/100 people) and
China (1.7/100 people).

NATIONAL TELECOM POLICY-1999

N.T.P 1999 was an integral and one of the most important instruments for telecom reforms in India.
It revolutionized this domain by paving the way for several new policies. In addition, it not only
identified the requirement for strengthening the regulatory regime but also recognized the need for
transforming this sector into a Public sector corporation primarily to distinguish the role of
government as a policy and licensing regulator than being an operator.

The main features were: -

 Making direct connectivity among telecom operators feasible and enabling them to share
network within their service areas.
 Altering the process of licensing to private players based on a revenue-sharing basis with the
clause of a one-time entry fee.
 Ensuring implementation of policies by the regulatory authority.
 Inviting participation of corporations for “N.L.D” (National Long distance) and “I.L.D”
(International long distance) services.

An amendment was made in the same (November 2003) that permitted a licensee to provide
wireline as well as wireless services in a pre-determined license area only after procuring a “U.A.S.L”
(Universal Access Service License).

The main objectives were: -

 Ensuring the affordability and availability of telecommunication devices.
 Enhancing infrastructure in technologically backward regions, particularly hills and remote
areas.
 Strengthening the vision and helping to achieve the goal of transforming the sub-continent
into an IT-powerhouse.
  Encouraging R&D efforts, thus providing an impetus to build world-class manufacturing
facilities.
 Enforcing transparency in spectrum management.
 Enabling Indian telecom players to compete globally.

Specific targets were:

 Increasing the tele-density from 0.8 to 7 and 15 by the years 2005 and 2010 respectively.
Additionally, increasing the rural density from 0.4 to 4 by 2010.
 Scaling rural infrastructure and enhancing its affordability by adopting a suitable tariff
structure.
 Providing access to Internet for all district headquarters by 2000.
 Providing high-speed internet and digital capabilities via “I.S.D.N” to all regions with the
number of residents exceeding 200,000 by the year 2002.

NATIONAL TELECOM POLICY-2012

The primal objective of NTP-2012 was to enhance the availability and affordability of
telecommunication and broadband services across the nation with special focus on its reliability and
security. At its core, this policy aimed at benefiting the economy with the multiplier and
transformational impact of such services. In comparison to earlier policies, NTP 2012 outlined the
wider implications resulting from telecommunications and ascertained their aspects in furthering the
national development agenda while enhancing fairness and comprehensiveness. It also recognized
the predominant role of the private sector in this field with a view to ensure the continued viability
of service providers in a competitive environment. According to policymakers, the principles of NTP-
2012 played an integral role in bringing parity among the interests of citizens & service providers and
revenue generated by the government.

The main objectives were: -

 Increasing coverage of secure and premium telecommunication services to subscribers.

 Scaling the Tele-density substantially from 39 (in 2012) to 70 (in 2017) and eventually to 100
by 2021.
 Providing prime quality and high-speed internet (minimum 2Mbps download speed),
consequently increasing the number of broadband connections substantially to 175 million
and 600 million in the years 2017 and 2021 respectively.
  Scaling the infrastructure for the provision of ultra-high-speed internet (download speed
upwards of 100 Mbps)
 Encouraging citizens to switch over to e-governance in important domains, namely health,
banking, and education in order to ensure comprehensive growth.
 Promoting domestic research and development by enhancing skills and proficiency to
transform India as a base for global markets. In other words, scaling the output to meet
indigenous demand up to 59% and 79% with minimum value addition of 44% and 64% by
2016 and 2021 respectively.
 Preferring procurement of domestically manufactured goods pertaining to defense and
military applications.
 Making the service delivery process efficacious for consumers irrespective of their devices as
well as their locations by Fixed Mobile Convergence, consequently ensuring the availability
of valuable spectrum for other wireless services.
 Formulating rudimentary acquisition and merger policies while ensuring sufficient
competition
 Ensuring the delivery of premium seamless voice, internet, and broadcasting services on
converged networks to provide a high-quality experience.
 Simplifying the licensing framework to enable expansion of prime services across the nation,
particularly remote areas.

NATIONAL DIGITAL COMMUNICATIONS POLICY-2018

The “National Digital Communications Policy (N.D.C.P)” replaced its predecessor “N.T.P-2012” in
2018. The notion behind formulating this policy was primarily to cater to technological
advancements, namely 5g, I.o.t, and M.2.M.

Machine-to-Machine (M2M) is generally used to categorize any technology that not only enables
information exchange among networked devices but also gives them the liberty to perform tasks
without human intervention.

Internet of Things (I.o.T) is a broad label that can be used to describe a network of seamlessly
connected embedded devices having the capability of communicating with each other using
standard inter-operable protocols without human intervention. To illustrate, an IoT enabled HVAC
system can report and schedule periodic cleaning of its air-filter without disrupting its functioning.
Main Objectives
 The primal focus was on supporting economic growth and development, harnessing new
technologies to generate employment & increasing productivity. Additionally, this also
benefited unserved and under-served markets.
 With India being diverse in certain aspects, particularly literacy rate and urbanization, this
policy tended to promote certain opportunities that would ensure social and economic
development with special attention on universal coverage.
 India has one of the highest number of internet users in the world with an estimated 41 %
internet penetration. Given this data, it is indubitable that internet, social media platforms,
and other digital technologies provide accessibility and empowerment to about 1.3 billion
people. According to a report, a mere 10% increase in broadband connections could increase
India’s GDP by about US$28 billion. Hence, to create a dynamic telecom market that
strengthens long-term competitiveness of the nation, rational policy and principles
framework were need of the hour.
 With the advent of the 4 th Industrial revolution, a cluster of revolutionizing technologies,
such as 5G, data analytics, and I.o.t have been integrated with traditional trade practices.
Hence, it is of paramount importance for India to not only promote but protect fair
competition in the digital economy sector. This policy played an integral role in ensuring the
same so that the Indian economy was ready to embrace this opportunity.
 While ensuring that administrative processes and structures remain compatible,
transparent, liable, and progressive, this policy aimed to captivate prime-quality sustainable
investments owing to the sector’s capital-intensive nature.
 This policy further aimed to forego all regulatory formalities that tend to be disruptive for
investment, innovation and consumers’ interest. Moreover, at its core “NDCP-2018”
envisioned to bolster not only the institutional mechanism but also this sector’s legislative
framework.

NDCP-2018 envisaged three missions, namely Connect India, Propel India, and Secure India,
primarily to not only to accomplish the above objectives but also to ensure their enforcement.

Connect India
Connect India intended to use “Broadband” as the means for social as well as economic
development by establishing a robust digital communications infrastructure in India with a special
focus on its prime-service quality and environmental sustainability.
Objectives of Connect India: -
 Facilitating schools, colleges and universities with high-speed internet (up to 100 Mbps).
 Setting up a “National Digital Grid, “to facilitate homes and businesses, particularly in towns
and cities, with optical fiber network via its “Fiber First Initiative”.
 Bolstering “satellite communication” by increasing the availability of new spectrum bands
and optimizing legislative processes for assignments and allocations. Furthermore, it also
intends to streamline the process for acquiring clearances for the satellite communication
systems.
 Setting up of “Telecom Ombudsman” for efficient and competent grievance redressal
mechanism.
 Supporting enforcement of environmental and safety protocols.
 Encouraging the use of renewable energy.

Figure: 1 Missions under Connect India (Source http://www.bbnl.nic.in/)

Propel India
Propel India intends to support the 4 th industrial revolution via promotion of intellectual property
rights (I.P.R) and innovation that would enable efficient and effective utilization of emerging
technologies, namely 5G, Artificial Intelligence, and I.o.t.
Objectives of Propel India: -
 Attract investments of USD 100 Billion in the Digital Communications
Sector, expand IoT ecosystem to 5 Billion connected devices, accelerate the transition to
Industry 4.0 by 2022.
 Creation of innovation-led Startups in the Digital Communications sector.
 Creation of Globally recognized IPRs (Intellectual Property Rights) in India.
 Development of Standard Essential Patents (SEPs) in the field of digital communication
technologies.
 Train/ Re-skill 1 Million manpower for building New Age Skills.
Secure India
Secure India intends to safeguard and protect digital sovereignty while not only ensuring proper
enforcement of privacy rights of individuals but also recognizing data as a credible economic
resource by setting up robust safeguarding mechanisms, thereby, ensuring proper functionality and
enforcement of “Net Neutrality Laws” with regard to service requirements and network capabilities.
Additionally, it also involves addressing issues pertaining to security and encryption clearances with
a special focus on establishing appropriate security standards.

DISPUTE SETTLEMENT MECHANISM IN INDIAN TELECOM

SECTOR: TDSAT

The Telecom Disputes Settlement and Appellate Tribunal (T.D.S.A.T) was primarily set-up to bolster
the legislative framework and to bring in functional clarity in this sector. Its primal function is to
settle legal disputes while protecting the interests of consumers and service providers ensuring
sustainable growth in the telecommunication sector.

“Cyber Appellate Tribunal” and “Airport Economic Regulatory Authority Appellate Tribunal”
also come under TDSAT’s Jurisdiction (WIKIPEDIA).

COMPOSITION OF TDSAT
TDSAT comprises three members including a Chairperson nominated by the government. There are
certain protocols for their appointment: -
Chairperson Sitting/Retired Judge (Supreme court or High Court)
Other members 1) Appointed secretary by the Central or State government.
2) Experts in their field (with Minimum 2 years’ experience)
POWERS AND JURISDICTION
TDSAT exercises jurisdiction (original as well as appellate) over Telecom/Airport tariff matters with
only appellate jurisdiction over matters pertaining to Cybercrimes.
Jurisdiction
Also, the Tribunal can call for the records relevant to disposing of a Petition or appeal, to examine
the legality or propriety or correctness of any decision or any order, etc. of TRAI.

Figure 2 : Jurisdictional Powers of T.D.S.A.T (SOURCE https://tdsat.gov.in/)

Powers
 All powers vested in TDSAT are to be exercised with the following: -
 Must be guided by principles of “Natural Justice”.
 Can regulate its procedure as it deems fit.
 TDSAT also exercises the same powers as vested in a Civil Court by Code of Criminal
Procedure.

APPEALS
Although orders/decisions pertaining to matters, namely “Telecom” and “Airport tariffs” passed by
TDSAT can be appealed to the Supreme Court of India (based on legal substantial queries only), no
appeals can be made against an intermediate order/decision made by TDSAT. Additionally, appeals
for matters of Cybercrimes can be made before the High Court only.
VARIOUS TYPES OF LICENSEES IN THE INDIAN TELECOM
SECTOR - LICENSING FRAMEWORK
CELLULAR MOBILE TELEPHONE SERVICE
Initially, the sub-continent was split into various service regions (24 areas with 20 Telecom circle
areas) for providing Cellular Mobile Telephone Service (C.T.M.S).
Liberalization of the Telecom sector started in November of 1994 with issuing of C.M.T.S licenses to
nine private players in metropolitan cities, namely New Delhi, Calcutta, Bombay, and Madras. This
was the first stage of privatization in this domain which earlier had been regulated primarily by the
government. The next four years registered similar attempts to privatize the subsequent issuing of
35 licenses to 15 private firms for expanding service areas (additional 18 territorial telecom circles).
Additionally, a cap for issuing only two C.M.T.S licenses was formulated and these were called first
and second cellular licenses. Bearers of both these licenses were obligated to pay a certain amount
as a fee that was based upon agreement during the bidding process itself. Consequently, with the
advent of NTP-1999 this payment system transformed into a model based upon Revenue sharing
basis.

Two state-owned service providers, namely Bharat Sanchar Nigam Limited (B.S.N.L) and Mahanagar
Telephone Nigam Limited (M.T.N.L) were also issued CMTS licenses to operate in several states. This
further paved the way for issuing 17 fresh licenses (in 2001) to private players primarily to cater to 4
metros and 13 Telecom circles. Even though these revolutionary changes were fruitful for the digital
economy, many service providers switched over to Unified Access Service Licenses (U.A.S.L) from
C.M.T.S in November 2003.

UNIFIED ACCESS SERVICE

Unlike C.M.T.S, Unified Access Service License not only provided wireline but wireless services also.
Wireless services were further divided into three different domains, namely Full-mobile, Limited
mobile, and Fixed-mobile. Although in limited mobile service (based on Short Distance Charging Area
Linked Numbering scheme) a restriction for authentication of consumer terminal had been placed,
the same could be availed with the adoption of numbering plan for “Home Zone Tariff” and cellular
mobile schemes. In addition, UASL also facilitated Value-Added services.
Although both basic and cellular service licenses were permitted to switch over to U.A.S.L, these
service providers were allowed to provide their wireless services in allocated spectrum range
without the provision of additional spectrum bandwidth.
NATIONAL LONG DISTANCE TELEPHONY
N.T.P-1999 contemplated the operation of National Long-Distance Telephony (N.L.D) service beyond
the coverage area to private firms in the year 2000. Additionally, the government also decided to
forgo all restrictions regarding the number of service providers for this domain. The framed policies
enabled N.L.D operators to cater to inter-circle traffic as well. Currently, an N.L.D license is issued
strictly on a non-exclusive basis for 2 decades with the provision of extension for a period of 10
years.

INTERNATIONAL LONG DISTANCE TELEPHONY

After a series of discussions, it was concluded by the Ministry that the operation of International
Long-Distance Telephony (I.L.D) must be handed over to private firms without any restrictions on the
number of service providers. I.L.D is essentially a network carriage service that provides
International connectivity to networks provided by operators in other countries. An I.L.D license is
also valid for a span of 2 decades (from the date of the license agreement).

LICENSING OF INTERNET SERVICES

Although Videsh Sanchar Nigam Limited (V.S.N.L) now known as “TATA Communications” was the
first Internet service provider in India, the government formally opened up this avenue for private
players in 1998. With the ambition of increasing Internet penetration substantially across the nation,
a lenient licensing framework was formulated. NTP-1999 contemplated the expansion of internet
telephony. Consequently, the government decided to issue Internet Service Provider (I.S.P) Licenses
to process and carry voice signals in 2002.

Even though India registered a considerable increase in ISP, the government decided to issue only a
single license that permitted restricted internet communication.

Types of I.S.Ps
There are three categories of Internet Service Providers Licensees: -
CATEGORY A
 Allows operation pan India
 Entry fee US $42,000
CATEGORY B
 Allows operation within the limits of a telecom sector or metro area.
 Entry feeUS $3000
CATEGORY C
 Allows operation within a small block
 Entry feeUS $700

Other Service Providers (O.S.P)

Other Service Providers (O.S.P) are enterprises that employ telecommunication for providing
services, such as Banking Process Outsourcing (B.P.O), Legal Process Outsourcing (L.P.O),
Knowledge Process Outsourcing (K.P.O), and Recruitment Process Outsourcing (RPO). OSP
licenses are also issued by the Department of telecommunication. All these licenses are issued
by location. To, illustrate if a firm operates more than one of such enterprises at different
locations, then for each location a unique OSP license is issued.
TYPES
Domestic  Allows operation within India.
International  Allows operation globally.

UL VNO LICENSE
A Unified License Virtual Network Operator (U.L.V.N.O) is a budget-friendly alternative to I.S.P
License. Although it is cheaper, it has to renewed every three years.
It has three categories: -
CATEGORY A  Allows operation pan India.
CATEGORY B  Allows operation within boundaries of a Telecom circle / Metro Area.
CATEGORY C  Allows operation with a small block.

SHARING INFRASTRUCTURE LICENSE

In order to cut costs in infrastructure development, sharing is an option that is often contemplated
by OSPs. A “Sharing Infrastructure License” enables them to do the same. Both shareholders are
obligated to agree to various terms and conditions that ensure the efficient functioning of both firms
without any disruptions.

WORK FROM HOME REGISTRATION

With pandemic disrupting life across the globe, the demand for this license has soared substantially.
Here employers are obligated to acquire a “Work from Home Registration”. In other words, it is an
agreement that allows employees to offer their services from the comfort of their homes.

IP-1 REGISTRATION
This type of registration is compulsory for Infrastructure Providers to develop properties for OSPs.
The following can be provided with the same: -
 DUCT SPACE
 RIGHT OF WAY
 TOWER
 DARK FIBRE

AUDIOTEX / VOICE CALL / UMS LICENSE

AudioTex Required by those enterprises that provide audio and text services to their clients.
Voice Call Required by those enterprises that provide option of voice calling.
UMS An Unified Messaging Service License covers all aspects of messaging services that an
enterprise wants to cater to their client.

GROWTH OF THE INDIAN TELECOM SECTOR

In India, internet usage per capita was about 11 Gb per month in 2020. Even though this makes this
nation one of the biggest data consumers globally, considering its mammoth population of 1.3 billion
people, this number is expected to surge by 7Gb by 2024. China with 1.57 billion users leads India by
only 400 million subscribers, thus making India a hotspot in this domain globally. With an internet
penetration of about 87% in 2020, the digital economy contributes significantly to India’s GDP of
US$ 2.8 trillion. Additionally, India also outpaced the USA in terms of applications downloaded
across various operating systems.

Owing to the framework of lenient policies formulated by the government and high customer
demand, this sector has experienced sharp growth in the last decade. India has the highest middle-
class population in the world. Consequently, their high disposable incomes certainly have
contributed substantially in bolstering the economy. Another point to consider is the de-regulation
of FDI which has encouraged foreign players to invest in India’s digital economy. Overall, this sector
has transformed into one of the most crucial employment generators in terms of numbers.

MARKET SIZE
The telecommunications market grew at a rapid rate registering a compound annual growth rate of
22% in 2016 to 750 million in 2020. Additionally. Internet consumption also grew at a rate of 11.56%
quarterly with gross revenue of US$36.87 billion in 2020.
According to experts, the number of internet users in India will increase by 550 million owing to the
exponential rise in usage of smartphones and the declining data costs. Consequently, this will
generate a number of employment opportunities.

INVESTMENTS AND MAJOR DEVELOPMENTS

Owing to such a high volume of consumers, there has been a lot of development in this sector.
The Indian telecom market has registered foreign investment worth US$ 38 billion in the last 2
decades.
Some developments in this field: -
 Indian telecommunication company “JIO” recently collaborated with various international
aviation companies as their internet service provider in flights. It also liquidated 23% of its
shareholdings worth US $15 billion to 10 private investors within a span of 8 weeks in 2020.
 “Airtel”, a multi-national telecommunications service provider recently partnered with
“Redware”, a UK based firm to facilitate Indian enterprises with cloud-based security
services. The company also bolstered the efficacy of their customer services by emphasizing
more on consumer satisfaction. To illustrate, they launched several ad campaigns that
highlighted the same.

GOVERNMENT INITIATIVES
With the pandemic raging across the globe, the Indian government used telecom systems in a
variety of ways. For instance, they were used to spread awareness about novel-coronavirus to
subdue the havoc created by enforcement of lockdown during the quarantine. Additionally, they
were extensively employed for tracing and tracking infected individuals to break the chain of
transmission. Overall, the government has adopted a pro-active approach in carrying out fast-
tracked reforms for the growth of this domain to greater heights.

Some of the Key Initiatives:-

 In January 2020, the Department of Telecommunications approved “Airtel” to liquidate all its
shareholdings to foreign investors.
 In order to bolster large-scale electronics manufacturing, the government approved
“Production Incentive Scheme (P.L.I)” to strengthen indigenous manufacturing and
 production, thus helping India become a major player in the production of not only mobile
phones but of specific electronic components also that include setting up Assembly, Testing,
Marking and Packaging units (A.T.M.P).
 In September 2020, the Indian government gave clearance to a project (costing US $136
million) that aims at facilitating 45,000 villages with optical fiber operated internet. This will
enhance connectivity and bring about social and economic development to one of the most
backward regions of the country.

ACHIEVEMENTS
 Registered a substantial increase of 75% in the number of internet subscribers.
 With the ambition of encouraging digital payments, the Indian Government launched
“Unified Payments Interface (U.P.I)”. It helped cater banking transactions worth US $30
billion, given the fact it became operational only 5 years back in April 2016.

According to various reports, net revenue generated by this sector will grow to US $35 billion by the
end 2021 with a two-fold increase in the number of internet subscribers and a four-fold increase in
overall I.P traffic (experiencing a compound annual growth rate of 30%). Additionally, the
government is emphasizing the usage of IoT integrated with around 110 smart city projects. The
considerable increase in the number of application downloads from 18.11 billion in 2018 to 25 billion
in 2020 and projected to reach 37 billion by 2022 signifies the growth that this domain has
registered and to the heights, it will grow to in the near future.

CONCLUSION
Owing to various policy changes, regulatory initiatives, and market innovations, the
telecommunications sector has experienced sustainable growth (double-digit growth rate) in the last
two decades, thereby, placing the Indian sub-continent at 2 nd and 4th positions (globally) in Mobile
and Internet markets respectively. Additionally, other initiatives, such as affordable tariffs and wider
service availability contributed substantially as well. In order to further grow this domain, a lot of
infrastructure development is being carried out primarily to ensure a successful launch of 5G
services in India. Given, this network being 20 times faster than the existing 4G, it will enable millions
of people to not only follow social distancing effectively but also allow them to work from home
efficiently.

Social and economic developments have compelled people to widen their horizons and enabled
them to ensure non-violation of their rights guaranteed by the constitution. This was exemplified by
the number of porting requests received for availing the “Mobile Number Portability (MNP)” facility.
This service enables consumers to retain their cell phone numbers while switching network
operators. Department of Telecommunication received requests from about 430 million people who
opted to exercise their right to choose their service provider. Additionally, the numbers for Internet
and broadband subscriber base also soared by 143 million and 151 million respectively.
With the intention of ensuring a transparent and fair process for carrying out rudimentary changes
in the existing regulatory framework, T.R.A.I allows its stakeholders to deliberate and offer their
valuable insights on the proposed changes. Additionally, it also issued critical consultation papers
inviting feedback on policies primarily to ensure the emergence of robust regulation.

Figure 3: Some of the Papers (SOURCE https://www.trai.gov.in/)

A crucial aspect of its functioning involves making recommendations on a variety of diverse subjects,
such as Licensing framework, spectrum management, and consumer safety and security as
mandated by the TRAI act.

Although integration of 5G will have considerable positive wider implications upon the economy,
altering the existing regulation with the addition of new policies is a challenge owing to its
complexity. Additionally, a framework of regulations will have to be laid down for new business
models that would emerge. Apart from the above disruptions, the most crucial aspect would be its
affordability. For its effective usage, 5G ought to be affordable, otherwise it would be detrimental
not only for the telecom sector but also for consumers also.

In its recommendations, TRAI highlighted the issue of allocating required spectrum bandwidth for a
timely 5G rollout. After several discussions between the government and TRAI, it was mutually
decided to deploy the 3300-3600 MHz band. However, out of this 300 MHz, 125 MHz has been
reserved for Defense and Department of Space leaving only 175 MHz of airwaves for service
providers. As per experts, this bandwidth might not suffice the demand, and the government should
contemplate other options with a view to encourage long-term investments in this domain.
In its attempt to pacify private players, TRAI released a “White Paper” that deliberated those areas
that would require investment for 5G deployment. It also identified regulatory challenges involved
with the same.

A recent surge in data traffic implicates the requirement for integrating various network
technologies that facilitate dynamic operation amongst “Radio Access Technologies (R.A.T)” for
efficient utilization of available spectrum. Implementation of “Super Core” to coordinate among
“R.A.Ts” for radio resource allocation would be the most efficacious way-out. Furthermore,
management modules must have certain attributes, such as dynamism, cost-effectiveness, and
adaptability, thereby, making them well suited to today’s applications owing to their high bandwidth
and dynamic nature.

Having traversed the evolutionary path in the last 4 decades, right from the launch of 1G in the
1980s to 5G, not only provides in-sight upon oversights of the past but also lays light on different
aspects and approaches towards the future state of telecom. Even though emergence of 4G has
revolutionized this industry by raising the wireless experience to a completely new level, 5G is
expected to be a breakthrough for the triumph of I.o.T and M.2.M communications.