The GSM Association (GSMA) has urged India to rationalise telecom sector taxes and levies, arguing that every dollar spent on taxation is a dollar diverted from network investments that could benefit consumers. GSMA Director General Vivek Badrinath said operators in India have demonstrated a strong industrial approach by continuing to invest in networks despite financial pressures and low average revenue per user (ARPU). The GSMA said that India’s incumbent telecom carriers — Reliance Jio, Bharti Airtel and Vodafone Idea (Vi) — need to increase their ARPU levels to support the scale of network investments required, according to an ETTelecom report dated October 23, 2025.
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Tariff Hike
“The operators in India are very old and have been making their investments. They've taken, I think, a very strong industrial approach that is even when their financial situation is tough, even when there are lots of pressures, even when the ARPU (average revenue per user) is not as high as it probably should be. I think they should be commended for that. The improvement of ARPU is needed to match the scale of investment that is required to serve these many customers and there's still a lot to be done,” Badrinath told ETTelecom’s Muntasir Abbas in an interaction, according to a report dated November 4, 2025.
He noted that while India has achieved 99 percent 4G and 82 percent 5G coverage, nearly 47 percent of the population remains unconnected to mobile internet — a challenge that requires joint efforts from the government and industry.
Very Big Difference Between 4G and 5G Monetisation
On 5G monetisation, Badrinath said, "When people say we'd expected 5G monetisation to be quicker, I'm not sure what was expected, because there's a very big difference between 4G monetisation and 5G monetisation. When 4G was rolled out, it was to bring mobile broadband to the people, to the users, to the customers. It was really largely on the consumer side.
“On the 5G side, the difference is that it has more spectrum and a better efficiency, so you can get more mobile broadband. So it still has a benefit to customers, a bit better latency and better experience. But the biggest benefits are for the enterprise. Now, when you're saying we have varied situations, you have countries that have not graduated to 5G. You have countries that have graduated to 5G non-standalone and so 5G standalone is, of course, one of the features that also needs to be rolled out. Now you have to roll out the applications. We have hundreds of applications across the world which are delivering value to factories, ports, hospitals, transportation routes, and educational facilities,” he reportedly said.
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GSMA Warns Against Direct Spectrum
The GSMA chief advised against allocating spectrum directly to enterprises for private networks, arguing that spectrum is best utilised through operators who can manage both retail and private network requirements efficiently.
"We see private networks under SA (standalone) mode. With SA, you get slicing, and you get latency features that you don't get when you do not do on non-standalone," he added.
Tariff Corrections May Be Needed
Badrinath also hinted that Indian operators may eventually need tariff corrections to sustain future investments. “I think there's still a lot of investment to be done. India is a big country, and has very fast growth. They need to have money to invest. There will be more spectrum. There will be more 5G factories to monitor for which monetisation is required. The Indian consumer will not stop consuming mobile broadband. I think they are now hooked.
“And there is still 47 percent of the people who have not been connected yet. So there will be capacity demands on the network. India has one of the tightest spectrum allocations. It's very tight and complex. So I think the money will be needed. So, it's important,” he reportedly said.
On pricing decisions in the market, he reportedly said: "We don't normally comment on pricing decisions in the market. But it's fair to say that I think this industry is so important for the country, and it needs to be in good economic health. There is a huge societal demand that I observe in India."
AI Seen as Key for Network Optimisation
On the role of artificial intelligence (AI), Badrinath highlighted its growing use in network optimisation, customer service and energy management. He said AI could also help bridge the digital usage gap by enabling more localised content in regional languages.
"AI is an empowering technology for people, but it can also help us to address the usage gap. One of the main reasons for 47 percent of people not being online is the availability of cheap smartphones. That's one thing, but the next one is the availability of relevant content. You don't want a smartphone if you don't speak, if the smartphone doesn't speak your language, and AI can help you with it. So I think those are things that AI is very much part of a lot of the thinking and of the future of this industry,” he added.
India’s Push for Global Standards
Commending India’s ambition to contribute 10 percent to global telecom standards, Badrinath said stronger R&D investment would help the country. “What we see is that the R&D investment that is required is high. India has already done a lot. The country has doubled its R&D investments since the mid-2010s. So I think by putting more effort into R&D, which I think is very much on the roadmap of the government, there is certainly a way for India to contribute to the next standards,” he said.
Satellite vs Mobile Broadband
On the debate between mobile and satellite broadband, Badrinath maintained that terrestrial mobile networks remain more economical and efficient for most users. “What's happening on satellite is nothing short of mind-boggling. That from a phone you're able to do direct to the device nowadays was something that we couldn't expect. If you have a mobile tower that is 100 meters away, it's still more economical and more efficient to communicate with that tower. And so mobile networks are an efficient way to communicate. When you're outside coverage, the satellite is unbeatable.
“Because if you have to take fiber and a tower to a very remote area for very few customers, it doesn't work. So it doesn't solve the usage gap. It solves the coverage gap. Not all phones have that ability yet. You are talking about the upper crust of smartphones. That's not going to solve the 47 percent question. So, it's a complementary technology. It deserves to be adopted. It can offer value in emergency situations,” he explained, as mentioned in the report.
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India’s Anti-Spam Measures Applauded
He also lauded India’s efforts to curb spam and scam communications through initiatives such as IMEI-based tracking and AI-driven fraud detection. "Airtel using AI, and I know Jio is also working on this. The industry is working on this. I think, lot of initiatives have been taken by the government and the Department of Telecommunications with the IMEI bearing list. These are all good initiatives, and so we at GSMA, insist on putting them forward and promoting them," Badrinath reportedly said. However, he stressed that such efforts must be coordinated across industries, including banks and app providers, to be fully effective.
Policy Priorities
Applauding the government’s decision to open up the 6 GHz band, Badrinath said policy focus should now shift to closing the usage gap, enhancing R&D, and finalising the data protection framework. On the long-standing demand to reduce the Universal Service Obligation Fund (USOF) levy, he reiterated GSMA’s stance against sector-specific taxation. “We believe that a dollar spent on taxes or fees is a dollar that's not spent on investment for the people, for the customers, for capacity,” he said.
