India's Telecom Ambitions: How can the World's Second-Largest Market Become a Global Leader?
Tilak Raj Dua serves as the Director General of DIPA and Chairman of ITU-APT. With over 35 years of experience in the telecom sector, he is a seasoned professional with expertise in product development, business development, telecom licensing, regulatory issues, spectrum management, and joint ventures. He has held prestigious positions in renowned telecom companies such as Bharti Airtel Ltd. and Shyam Telecom Ltd. Additionally, he is an engineering graduate with diplomas in Business Management and Export Marketing.
In the rapidly evolving landscape of global telecommunications, India stands at a critical juncture. With 1.2 billion subscribers, the country boasts the world's second-largest telecom market, contributing a substantial 6.5 percent to its GDP. As we look towards 2029, projections indicate a market value of $69.62 billion, underlining the sector's immense growth potential. But the question remains: How can India leverage its vast market to become a true global leader in telecommunications?
The Foundation for Growth: Robust Infrastructure
India's telecom sector has witnessed remarkable progress in recent years with the number of towers doubling to 8 lakhs and fibre optic cable coverage expanding from 1.1 lakh km to an impressive 40.9 lakh km, built on the backbone of robust and ever-expanding infrastructure. The country has achieved 99 percent coverage in 4G, with over 600,000 villages connected and approximately 442,000 5G base stations deployed. This extensive network forms the foundation of India's digital aspirations, enabling widespread connectivity and paving the way for advanced services.
The government's proactive approach has been instrumental in this growth. Initiatives like the National Digital Communications Policy 2018 and the Digital India program have set ambitious targets, aiming to attract $100 billion in investments and enhance digital infrastructure. The allowance of 100 percent Foreign Direct Investment (FDI) in the sector has further bolstered its appeal, making India the third-largest recipient of foreign investments in this space.
Transformative Government Initiatives
Several government initiatives are reshaping India's telecom landscape. The BharatNet project aims to connect all 250,000 gram panchayats with high-speed broadband, bridging the digital divide between urban and rural areas. The PM-WANI (Wi-Fi Access Network Interface) scheme is democratizing internet access by creating a vast network of public Wi-Fi hotspots. The Bharat Nidhi Project focuses on creating a robust digital infrastructure for financial inclusion.
Moreover, India's emphasis on Digital Public Infrastructure (DPI) is creating a foundation for inclusive growth. The recent Telecommunication Act 2023 modernizes the regulatory framework, addressing emerging technologies and promoting ease of doing business in the sector.
Digital Public Infrastructure: A Catalyst for Growth
India's focus on Digital Public Infrastructure (DPI) is playing a crucial role in enhancing the telecom sector. DPI, which includes digital identity systems, payment interfaces, and data exchange platforms, is providing a standardized and interoperable digital backbone. UPI streamlined payments, facilitating 50 billion telecom transactions in 2023. Aadhaar-based e-KYC now activates 95 percent of new connections instantly. DigiLocker integration reduced document query time by 40 percent. This ecosystem of digital identity, payment, and data exchange platforms provides a standardized backbone, improving efficiency and fostering innovation. DPI drives digital service adoption across sectors, amplifying India's telecom advancements and positioning it for global leadership.
5G and Beyond: The Next Frontier
India's 5G rollout has been nothing short of impressive. Within eight months of its launch, the country achieved 2 Lakhs 5G sites, covering over 700 districts. This rapid adoption is expected to drive innovation across various sectors, from healthcare to agriculture.
But India's ambitions don't stop at 5G. The country is already laying the groundwork for 6G technology. PM Modi released Bharat 6G vision document emphasizes on affordability, sustainability, and ubiquity, showcasing India's commitment to staying at the forefront of technological advancements. Collaborations with international bodies like the NextG Alliance of ATIS, USA, and the 6G Smart Networks and Services Industry Association of the EU further underscore India's global approach to 6G development.
From Import-Dependent to Self-Reliant
A key aspect of India's telecom ambitions is the shift from being import-intensive to achieving self-reliance in manufacturing. The government's Production Linked Incentive (PLI) scheme, worth INR 121.95 billion, has attracted 31 companies to commit to additional manufacturing in the telecom equipment space. This push for local manufacturing is expected to create millions of jobs, boost GDP, and secure India a significant share in the global supply chain ecosystem.
The results are already visible. Indian companies exported telecom equipment and accessories worth Rs 25,200 crores last year, significantly narrowing the gap between imports and exports. Most of the country's 5G demands are now being met by domestically manufactured products, a testament to the "Make in India" initiative's success in the telecom sector.
Smart Cities and Digital Infrastructure
India's telecom ambitions are closely tied to its Smart Cities Mission, which aims to develop 100 smart cities across the country. With 7,233 projects already completed and a budget of Rs 145,217 crores invested, this initiative is driving extensive ICT infrastructure development. The integration of 5G technology with smart city solutions presents a massive opportunity for India to showcase its technological prowess on a global stage.
International Collaboration and Telecom Diplomacy
To truly become a global leader, India recognizes the importance of international collaboration. The Department of Telecommunications (DoT) is actively establishing strategic partnerships to build a world-class telecom ecosystem. These efforts aim to enhance global connectivity and position India as a leader in digital innovation and infrastructure.
India's telecom diplomacy has focused on tangible outcomes, resulting in new business ventures, partnerships with global leaders, and support for domestic startups. The country is set to host the World Telecommunication Standardization Assembly (WTSA) in October 2024, a first for India, which will bring together over 2,000 delegates from 180 countries to shape the future of telecommunication standards.
Opportunities and the Road Ahead
Despite the impressive progress, challenges remain. Ensuring affordable and reliable connectivity in rural areas, bridging the digital divide, and maintaining a balance between rapid technological adoption and sustainable development are key issues that need addressing.
To sustain and accelerate its growth trajectory, India must focus on:
Conclusion
India's telecom sector stands on the cusp of a transformative era. With its vast market, rapid technological adoption, growing manufacturing capabilities, and robust infrastructure, the country has the potential to not just participate in but lead the global telecom landscape. By leveraging its strengths in technology, economy, and human resources, and addressing existing challenges, India can indeed transform its position from the world's second-largest telecom market to a true global leader in telecommunications.
The journey ahead is challenging but filled with immense opportunities. As India continues to innovate, collaborate, and invest in its digital future, supported by forward-thinking government initiatives, it is poised to play a pivotal role in shaping the global telecom industry for years to come.
In the rapidly evolving landscape of global telecommunications, India stands at a critical juncture. With 1.2 billion subscribers, the country boasts the world's second-largest telecom market, contributing a substantial 6.5 percent to its GDP. As we look towards 2029, projections indicate a market value of $69.62 billion, underlining the sector's immense growth potential. But the question remains: How can India leverage its vast market to become a true global leader in telecommunications?
The Foundation for Growth: Robust Infrastructure
India's telecom sector has witnessed remarkable progress in recent years with the number of towers doubling to 8 lakhs and fibre optic cable coverage expanding from 1.1 lakh km to an impressive 40.9 lakh km, built on the backbone of robust and ever-expanding infrastructure. The country has achieved 99 percent coverage in 4G, with over 600,000 villages connected and approximately 442,000 5G base stations deployed. This extensive network forms the foundation of India's digital aspirations, enabling widespread connectivity and paving the way for advanced services.
The government's proactive approach has been instrumental in this growth. Initiatives like the National Digital Communications Policy 2018 and the Digital India program have set ambitious targets, aiming to attract $100 billion in investments and enhance digital infrastructure. The allowance of 100 percent Foreign Direct Investment (FDI) in the sector has further bolstered its appeal, making India the third-largest recipient of foreign investments in this space.
Transformative Government Initiatives
Several government initiatives are reshaping India's telecom landscape. The BharatNet project aims to connect all 250,000 gram panchayats with high-speed broadband, bridging the digital divide between urban and rural areas. The PM-WANI (Wi-Fi Access Network Interface) scheme is democratizing internet access by creating a vast network of public Wi-Fi hotspots. The Bharat Nidhi Project focuses on creating a robust digital infrastructure for financial inclusion.
Moreover, India's emphasis on Digital Public Infrastructure (DPI) is creating a foundation for inclusive growth. The recent Telecommunication Act 2023 modernizes the regulatory framework, addressing emerging technologies and promoting ease of doing business in the sector.
Digital Public Infrastructure: A Catalyst for Growth
India's focus on Digital Public Infrastructure (DPI) is playing a crucial role in enhancing the telecom sector. DPI, which includes digital identity systems, payment interfaces, and data exchange platforms, is providing a standardized and interoperable digital backbone. UPI streamlined payments, facilitating 50 billion telecom transactions in 2023. Aadhaar-based e-KYC now activates 95 percent of new connections instantly. DigiLocker integration reduced document query time by 40 percent. This ecosystem of digital identity, payment, and data exchange platforms provides a standardized backbone, improving efficiency and fostering innovation. DPI drives digital service adoption across sectors, amplifying India's telecom advancements and positioning it for global leadership.
India's focus on Digital Public Infrastructure (DPI) is playing a crucial role in enhancing the telecom sector. DPI, which includes digital identity systems, payment interfaces, and data exchange platforms, is providing a standardized and interoperable digital backbone.
5G and Beyond: The Next Frontier
India's 5G rollout has been nothing short of impressive. Within eight months of its launch, the country achieved 2 Lakhs 5G sites, covering over 700 districts. This rapid adoption is expected to drive innovation across various sectors, from healthcare to agriculture.
But India's ambitions don't stop at 5G. The country is already laying the groundwork for 6G technology. PM Modi released Bharat 6G vision document emphasizes on affordability, sustainability, and ubiquity, showcasing India's commitment to staying at the forefront of technological advancements. Collaborations with international bodies like the NextG Alliance of ATIS, USA, and the 6G Smart Networks and Services Industry Association of the EU further underscore India's global approach to 6G development.
From Import-Dependent to Self-Reliant
A key aspect of India's telecom ambitions is the shift from being import-intensive to achieving self-reliance in manufacturing. The government's Production Linked Incentive (PLI) scheme, worth INR 121.95 billion, has attracted 31 companies to commit to additional manufacturing in the telecom equipment space. This push for local manufacturing is expected to create millions of jobs, boost GDP, and secure India a significant share in the global supply chain ecosystem.
The results are already visible. Indian companies exported telecom equipment and accessories worth Rs 25,200 crores last year, significantly narrowing the gap between imports and exports. Most of the country's 5G demands are now being met by domestically manufactured products, a testament to the "Make in India" initiative's success in the telecom sector.
Smart Cities and Digital Infrastructure
India's telecom ambitions are closely tied to its Smart Cities Mission, which aims to develop 100 smart cities across the country. With 7,233 projects already completed and a budget of Rs 145,217 crores invested, this initiative is driving extensive ICT infrastructure development. The integration of 5G technology with smart city solutions presents a massive opportunity for India to showcase its technological prowess on a global stage.
International Collaboration and Telecom Diplomacy
To truly become a global leader, India recognizes the importance of international collaboration. The Department of Telecommunications (DoT) is actively establishing strategic partnerships to build a world-class telecom ecosystem. These efforts aim to enhance global connectivity and position India as a leader in digital innovation and infrastructure.
India's telecom diplomacy has focused on tangible outcomes, resulting in new business ventures, partnerships with global leaders, and support for domestic startups. The country is set to host the World Telecommunication Standardization Assembly (WTSA) in October 2024, a first for India, which will bring together over 2,000 delegates from 180 countries to shape the future of telecommunication standards.
Opportunities and the Road Ahead
Despite the impressive progress, challenges remain. Ensuring affordable and reliable connectivity in rural areas, bridging the digital divide, and maintaining a balance between rapid technological adoption and sustainable development are key issues that need addressing.
To sustain and accelerate its growth trajectory, India must focus on:
- Universal Connectivity: India is on track to provide universal broadband connectivity at 50 Mbps to every citizen by 2029. The ambitious goal of ensuring 1Gbps connectivity to all Gram Panchayats, with plans to scale up to 10 Gbps, demonstrates the country's commitment to digital inclusivity.
Infrastructure Enhancement: Increasing tower density presents an opportunity to improve connectivity by reducing the distance between users and the nearest tower, leading to better signal quality and faster data speeds across the country.
Rural Development: Leveraging the USOF (Digital Bharat Nidhi) offers a promising avenue to support infrastructure development in rural areas and provide affordable broadband services to underserved communities.
Collaborative Growth: Public-Private Partnerships (PPPs) can drive effective infrastructure development, combining government support with private sector expertise and resources.
Supportive Policies: The introduction of more tax breaks, subsidies for rural deployments, streamlined approval processes, and increased support for research and development can accelerate the advancement of India's digital infrastructure landscape.
Embracing Advanced Technologies: Policies supporting the adoption and development of advanced technologies like 5G, IoT, and M2M communication will position India at the forefront of the global digital revolution.
Fostering Innovation: Encouraging innovation and research in new wireless communication technologies through regulatory sandboxes and simplifying the process for obtaining experimental licenses will drive technological advancements.
Sustainable Development: Promoting the use of renewable energy sources in telecom infrastructure will not only reduce the sector's carbon footprint but also improve the reliability and cost-effectiveness of services, especially in remote areas.
Conclusion
India's telecom sector stands on the cusp of a transformative era. With its vast market, rapid technological adoption, growing manufacturing capabilities, and robust infrastructure, the country has the potential to not just participate in but lead the global telecom landscape. By leveraging its strengths in technology, economy, and human resources, and addressing existing challenges, India can indeed transform its position from the world's second-largest telecom market to a true global leader in telecommunications.
The journey ahead is challenging but filled with immense opportunities. As India continues to innovate, collaborate, and invest in its digital future, supported by forward-thinking government initiatives, it is poised to play a pivotal role in shaping the global telecom industry for years to come.
