India’s telecom sector continues to be a key driver of the country’s digital transformation, with Communications Minister Jyotiraditya Scindia outlining progress on 5G rollout, Vodafone Idea’s AGR issue, industry finances, BSNL’s revival and emerging technologies.
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Crossed One Billion Internet Subscribers
Speaking to ET Now, Scindia said the sector has witnessed rapid expansion over the past decade. “Indian telecom story is a very very robust success story for the world to emulate. In the last eleven years, we have grown from nine hundred million subscribers to over 1.22 billion. Internet subscribers have crossed one billion and broadband users have increased fifteen-fold to nearly 945 million,” he reportedly said.
Cheap Data and Call Rates in India
He highlighted the sharp decline in telecom costs, underscoring India’s global competitiveness. “A call per minute in 2014 cost fifty paise. Today, it is three paise, a 97 per cent reduction. One GB of data that cost Rs 279 now costs around Rs 9, about four percent of global rates. India is now being recognised as the data center of the world,” Scindia said.
Indigenous 4G stack
The minister also pointed to India’s technological progress, noting the successful development of an indigenous 4G stack, joining an elite club of countries including South Korea, China, Sweden and Finland. “This innovation has been rolled out across 100000 sites and reflects India’s growing technological capabilities,” he added, placing India among a select group of countries with end-to-end telecom technology.
Vodafone Idea's AGR Issue
On the Vodafone Idea's AGR (Adjusted Gross Revenue) issue, Scindia said the government is examining the Supreme Court’s ruling while maintaining its position on equity limits. “We are evaluating possibilities and will inform stakeholders once a path forward is finalised. Vodafone has healthy cash flows, a strong EBITDA, and has raised significant funds to support future capex,” he said.
Telecom Tariffs and Pricing
Addressing telecom tariffs, Scindia emphasised that pricing remains market-driven. “Tariffs are under forbearance. Each telco has its own strategy. The key is that customers must get value for their money. India has some of the lowest tariffs in the world, 1.49 on the global tariff index, compared to 49 in the US,” he said, as cited in the report. He added that operators have invested Rs 3.5 lakh crore in 5G infrastructure, with the number of towers expanding rapidly to 4.5 lakh.
BSNL Revival
On the revival of BSNL, Scindia reportedly said the state-run operator is showing tangible signs of recovery. “Our 4G rollout is on track, with 97,000 towers commissioned. BSNL’s subscriber base has grown from 8.55 crore to 9.26 crore, a nine percent increase. Operating profit has grown 43 per cent in the first half of this year, and we forecast Rs 6500-7000 crore for the full year,” he said. He added that a 5G rollout will follow after consolidation of the 4G network and the addition of 22,000 more towers.
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Satellite Communication
Commenting on satellite communication, Scindia said the government is progressing on spectrum allocation and pricing. “Testing amounts of spectrum have been provided to players including OneWeb, Reliance, and Starlink. We expect ramp-up and final spectrum pricing decisions in the next couple of months,” he said.
India Set for Ambitious Growth in Telecom
Concluding, Scindia underlined India’s long-term telecom ambitions. “With robust infrastructure, multiple operators, and indigenous technology, India is set for ambitious growth in the telecom space, potentially becoming the world’s largest telecom market,” he was quoted as saying.
