India is reportedly looking to promote its cheap data tariffs to attract investments from foreign companies that rely on affordable, fast broadband connectivity to deliver essential services. The government aims to leverage the country's much lower data rates compared to markets such as China, US, Russia, UK, Australia, and South Africa to attract foreign companies providing services such as ride-hailing, online food delivery, telemedicine, digital payments, and online education, ET reported, citing senior government officials.
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Rapid 5G Adoption and Accessible Smartphones
According to the report, the government also intends to highlight India's rapid adoption of 5G services and the growing accessibility of affordable 5G smartphones in the world's second-largest mobile phone market to attract potential investors.
As per the minutes of a recent telecom sector review meeting, the Prime Minister's Office (PMO) has asked the Department of Telecommunications (DoT) to work with the external affairs ministry and the Department for Promotion of Industry and Internal Trade (DPIIT) for pitching India’s low data rates as a major attraction point to international investors, the report said.
"It was observed that more needs to be done to leverage India’s low data rates and promote them to global investors," the report quoted a person familiar with the discussions.
Senior officials reportedly said the telecom department is fast-tracking efforts to position India as a prime investment destination that offers affordable internet access at data rates way below key global markets.
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India's Data Rates Cheapest in World
"We are not merely reaching out to potential investors in the telecom and tech sectors. The objective is to spread the word among the global investor community, across industry verticals that India's data rates are amongst the lowest in the world, and with a significantly high median mobile broadband speed of 100 Mbps," a senior DoT official was quoted as saying.
He reportedly added that the government would target potential global investors across sectors whose business models rely on accessing reliable, low-cost, fast internet to deliver diverse services via digital platforms.
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Average Data Pricing
According to data compiled by the DoT, India's average data pricing of USD 1.89 per month is significantly lower than that of countries such as China (USD 8.84/month), Bangladesh (USD 3.24/month), Russia (USD 6.55/month), Brazil (USD 6.06/month), the UK (USD 12.50/month), the US (USD 49.00/month), Australia (USD 20.10), South Africa (USD 15.80), Indonesia (USD 3.29), Egypt (USD 2.55), Nepal (USD 2.75), and Bhutan (USD 4.62), among others.
5G in India
Reliance Jio and Bharti Airtel have already launched 5G nationwide, while Vodafone Idea (Vi) is set to begin a phased rollout of the 5G services in India’s major cities starting in March 2025.
Separately, during the telecom review meeting, the PMO reportedly instructed the DoT to conduct a thorough assessment of the approximately 100 5G labs in the country and implement measures to foster healthy competition among them, aimed at increasing their productivity.
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Security Concerns Raised by PMO
"The best performing Atal Tinkering Labs in schools may be identified and linked with these 5G labs, and various CSR funds may be leveraged to further strengthen the 5G labs," the PMO reportedly suggested, according to a summary of the meeting minutes.
The PMO also raised security concerns regarding Indian mobile handsets in border areas automatically picking up telecom signals from operators in neighbouring countries. “It has urged the DoT to examine this and take remedial action," said the person cited above, the report added.
