It’s the holiday season, and as the year 2023 is soon coming to an end, COAI has shared its year-end perspective on the developments in the Indian Telecom sector, taking a look back at 2023. Lt. Gen. Dr. S.P. Kochhar, the Director-General of COAI, stated that India’s telecom sector witnessed significant developments in 2023. The nationwide 5G rollout, setting unprecedented benchmarks, with over 3.97 lakh 5G BTS sites established in over 738 districts until November, has positioned India as a global 5G leader.
COAI stated that, as of August, the industry has 1.148 billion wireless subscribers, reflecting a 1.9 percent growth from the previous year. The average data usage per subscriber has reached 17.4GB per month.
Large Traffic Generating Digital Players/Platforms
COAI began by addressing challenges amid growth, a significant issue facing the industry, focusing on the lack of contribution to network costs from Large Traffic Generating (LTG) digital players/platforms.
According to COAI, Telecom Service Providers (TSPs) have been urging for a fair share from LTGs, given the escalating infrastructure expenses and increasing costs of network deployment and maintenance by the TSPs. The industry body emphasised that despite LTGs earning both subscription fees and advertising revenues, they do not financially contribute to network costs. This lack of financial support is hindering the financial sustainability of TSPs and impeding further investments in network development.
Recent Bill Introduced in US Senate
In this context, COAI highlighted a recent bill introduced in the US Senate, which is seen as an acknowledgement of the necessity for high-traffic-generating ‘Edge Service Providers’ to contribute to the costs of delivering affordable broadband. COAI believes this aligns with the stance of the Indian telecom sector.
6 GHz Band for 5G Advancements
With a greater demand for capacity, speeds, and coverage, there is a need for a greater amount of spectrum in the apt band suitable for deploying technologies. Echoing a similar perspective, COAI highlighted that the allocation of the 6 GHz spectrum band holds great importance for enhancing the quality and coverage of the mobile network in India. Allocating the full 6 GHz band to 5G communications is a move to address the escalating demand for data services across the country, said the Industry Body.
“This decision not only aligns with the rapid growth of data consumption but also positions 5G as a pivotal technology for wide-area applications, including drones, telemedicine, and smart cities. Given that 5G is faster and can handle more data than Wi-Fi, allocating the 6 GHz band is essential to strengthen India’s digital infrastructure for future advancements. The historic agreement reached at the recent World Radiocommunication Conference 2023 held in Dubai, to open this spectrum band for International Mobile Telecommunications (IMT), vindicates the global acknowledgement of the demand by Indian TSPs to allocate this potent band for vital use in 5G, 5G Advanced, and the future 6G,” said COAI.
Major Issues Demanding Attention
COAI has also highlighted major issues demanding attention, including pending matters such as the second phase of 5G spectrum allocation, Right of Way (RoW) permissions, high levies, and taxes that continue to pose challenges to the telecom sector. Additionally, the high cost of commercial electricity tariffs for telecom is also a challenge, impacting the sector’s investment and growth, according to COAI.
While Telecom Service Providers (TSPs) are looking for a more supportive regulatory environment and seeking resolution, COAI is of the view that there is a pressing need for the government to address these issues to ensure a robust and evolving telecom ecosystem.
Developments in 2023
COAI outlined key developments in 2023, including Indian TSPs completing their minimum 5G rollout obligations in each of the 22 Licensed Service Areas in India in just 10 months, positioning India as the second-largest 5G network globally.
Additionally, the advent of 6G technology was marked by the release of India’s 6G Vision document. COAI highlighted the establishment of high-level panels and 6G labs by Nokia and Ericsson in India, contributing to global 6G research and standardisation.
Telecommunications Bill 2023
The industry body praised the Telecommunications Bill 2023, stating that it marks a significant moment where the government has made enabling provisions in ROW (Right of Way) to ensure a robust telecom infrastructure in the country.
S P Kochhar commented, “Besides, focus on clarification and specification of penalties designed to increase industry confidence and increase ease of doing business, replacing ‘license’ with ‘authorisation’ to simplify the overall regulatory landscape for telecom services, and strict provisions made for unlawful interception of messages or unauthorised access to the same to help ensure national security, are progressive steps for India’s digital communications sector.”
Looking Ahead: 5G and Regulatory
COAI’s S P Kochhar concluded by saying, “As India asserts its global leadership in 5G, the telecom industry anticipates a dynamic evolution of use cases. The industry’s expectations revolve around leveraging 5G for a multitude of applications and fostering an environment that takes India towards a digitally empowered future. Industry stakeholders also look forward to a collaborative effort with LTGs to develop high-quality networks and a responsible fair-sharing model, ensuring sustainable growth for the entire digital ecosystem. The evolving regulatory landscape is also expected to play a pivotal role in addressing challenges, providing a supportive framework for innovation while maintaining fair competition.”
TelecomTalk’s Appreciation
TelecomTalk also thanks COAI for its support to consumers and the telecom industry through this COAI Year-End Perspective 2023 statement.
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