The Indian government is working to address challenges related to the lack of returns on 5G investments and the need for infrastructure expansion due to surging data consumption, the Telecom Secretary highlighted at an ICRIER Prosus Centre event. "The government is looking at addressing challenges related to lack of returns on 5G investments and at the same time need for expanding telecom infrastructure arising out of increase in data usage," Telecom Secretary Neeraj Mittal said at the event, according to a PTI report.
Also Read: 5G Yet to Create New Revenue Streams for Telecom Operators, Says Airtel Executive: Report
Data Consumption for Entertainment
He noted that India's median internet speed has risen from 99-100 Mbps in September to 151 Mbps, with individuals consuming an average of about 29 GB of data per month. "Most people are consuming data for the purpose of entertainment which means that there is a need to continuously augment telecom infrastructure," Mittal was quoted as saying.
Lack of 5G Use Cases
"In terms of challenges, we are going to see a lot of pressure on spectrum, as the data flow increases, we have to find new spectrum for mobile usage and broadband. A lot of capex will be required as we move from 5G to 6G. Elsewhere use of 5G and providing them returns because we have not been able to utilise used cases of 5G anywhere in the country. We have spent a lot of money. We have only seen higher speed from 4G to 5G," Mittal reportedly said.
Also Read: Telcos Have Reached a Saturation Point with Limited Monetisation Prospects?
Investments by Private Telecom Operators
Indian private operators are estimated to have invested around Rs 70,000 crore in telecom infrastructure and spectrum assets in 2024 alone to expand 5G coverage. Bharti Airtel and Reliance Jio are offering complimentary unlimited 5G services on select 4G prepaid plans and for postpaid users. Meanwhile, Vodafone Idea has reportedly launched 5G testing services in the Mumbai Metro area and may roll out services soon.
According to the report, Mittal also stated that BSNL has completed the installation of 80,000 mobile towers for 4G services which is one of the biggest deployments by an operator.
Affordability of Devices
"Another challenge we face is the affordability of devices which many in the country are unable to afford, Mittal reportedly said, adding, "These are the challenges that the government is looking into and over time work on all of them."
Also Read: Bharat Offers One of the Cheapest Mobile Data Rates Globally: DoT
Revenue Sharing with Big Tech
Telecom operators have also called for revenue-sharing by Big Tech firms like Google, Amazon, Meta, and Netflix, citing their heavy data usage. However, internet industry bodies have opposed such measures, arguing they violate net neutrality principles.
