By SP Kochhar

The Indian telecom industry is experiencing remarkable growth, both domestically and internationally. With approximately 1,187 million subscribers, urban teledensity has reached 131.01%, while rural areas lag at 58.31%. Despite this disparity, there remains immense potential for expansion across both sectors. The roll-out of 5G is progressing rapidly, facilitated by artificial intelligence (AI), indigenous data sets, and the establishment of localised data centres. However, affordability remains a key hurdle, particularly in rural areas where network accessibility and 5G-enabled handsets are still financially out of reach for many.

To address these challenges, the Indian government has implemented financial measures such as goods and services tax refunds and the removal of bank guarantees. Additionally, significant research is underway to develop cost-effective 5G handsets priced between Rs 6,000 and Rs 7,000. Furthermore, satellite technology is being introduced to provide connectivity to remote regions where terrestrial networks are unfeasible.

Unlike some nations with isolated pockets of industrialised areas lacking telecom infrastructure, India’s development is more integrated. However, there are still inaccessible regions, such as high-altitude terrains, dense forests, and areas affected by Naxalite activity. The government has committed to ensuring fiber connectivity reaches every village, reinforcing its mission of comprehensive digital inclusion.

The Indian government has also prioritised domestic telecom manufacturing to reduce dependency on imports and position the country as a global hub. Policies such as the production-linked incentive scheme have attracted significant investments, fostering self-sufficiency and boosting export potential. To maintain secure and reliable networks, stringent security protocols have been enacted, including the zero-trust regime which mandates the use of trusted sources and periodic equipment testing. Ongoing discussions with telecom players and global companies to address concerns related to source code transparency and patent management are also underway.

India has emerged as a leader in data consumption, despite being one of the most cost-competitive telecom markets globally. While the average revenue per user is on the rise, the proliferation of over-the-top (OTT) services presents both opportunities and challenges. Telecom operators must make substantial infrastructure investments to sustain high-quality services, yet OTT platforms currently contribute little to network costs. The government is actively engaged in finding a fair and sustainable resolution to this issue.

Data security and privacy are also critical considerations in an increasingly connected India. To prevent data misuse, particularly by entities operating beyond Indian jurisdiction, policies such as data localisation have been implemented in line with global trends. Detailed discussions on data privacy are ongoing to establish a comprehensive and enforceable policy that safeguards individual rights while upholding national security.

The telecom sector has adopted a two-pronged approach to mitigating cyber fraud and spam. AI-driven warning systems have been deployed to alert subscribers to potential scams, with significant success in blocking fraudulent calls. The government has also leveraged blockchain and other advanced technologies to curb telecom-based cyber threats. However, regulatory measures for OTT communication services remain a work in progress, with continuing discussions on subjecting these platforms to the same compliance standards as traditional telecom services.

In fact, at the DIGICOM Summit organised by the Cellular Operators Association of India (COAI) in January, the Union minister for communications, Jyotiraditya Scindia, had rightfully pronounced that telecom is not just a horizontal sector today but a value-added horizontal which supports all the other verticals in the periphery. Moreover, the international interest in India’s telecom sector is evident from the growing prominence of events like the India Mobile Congress (IMC). The overwhelming response to IMC 2025 has cemented its status as a global telecom showcase, with an announcement scheduled for the Mobile World Congress 2026 in Barcelona.

Yet, beyond technology and infrastructure, the industry’s progress hinges on skilled manpower. Recognising this, the government has allocated Rs 8,800 crore under the Skill India Programme for the period of 2022-2026 to enhance employment opportunities and technical competencies.

With a thriving domestic market and increasing global prominence, India’s telecom industry is poised for unprecedented growth. By fostering innovation, investing in infrastructure, and forging strategic global collaborations, the sector is well on its way to becoming a dominant player on the world stage. The time is ripe for global stakeholders to partner with India and accelerate mutual progress in the telecom domain.

The writer is director general, COAI.

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