BusinessLine (Chennai)

Telecom ringing in good times, but some challenges linger

CALLING FOR ATTENTION. Call drops, pesky calls, cyber frauds continue to plague consumers

- S Ronendra Singh New Delhi ISTOCKPHOT­O New Delhi

The telecom sector played a pivotal role during the Covid-19 lockdown, enabling healthcare management, uninterrup­ted education, and facilitati­ng various other essential services.

In the course of 10 years, the Indian telecommun­ications landscape has evolved, propelling the nation into the digital age. From the inception of 4G to the burgeoning anticipati­on of 5G, from democratis­ation of data to the widespread proliferat­ion of digital services, the journey from 2014 to 2024 has been a testament to relentless innovation and transforma­tive growth.

Central to this metamorpho­sis is the spectrum, the life and blood of the telecom industry. The pivotal breakthrou­gh came with the auctioning of 4G and subsequent­ly 5G spectrum, heralding a new era of highspeed data connectivi­ty.

The transition from 2G to 4G, and now the imminent advent of 5G has been instrument­al in reshaping how Indians connect, communicat­e, and consume content. What was once an aspiration for seamless streaming and lightning-fast downloads has materialis­ed into a tangible reality, thanks to the strides in spectrum allocation and technologi­cal advancemen­ts.

The statistics serve as a testament to this evolution. From a modest allocation of 250 MB per user per month in 2014, the average data consumptio­n has soared to an astounding 26 GB per user per month today.

This surge not only underscore­s the escalating reliance on digital services, but also the a—ordability and accessibil­ity of data. The data rate per user

The transition from 2G to 4G and the advent of 5G have been instrument­al in reshaping how Indians connect, communicat­e and consume content

has plummeted from around ₹300 per GB to a mere ₹10 per GB, democratis­ing data consumptio­n across all socio-economic strata.

PARADIGM SHIFT

Concurrent­ly, the content landscape has undergone a paradigm shift. Streaming services such as Netflix and Amazon Prime have transcende­d mere popularity to become integral components of households, revolution­ising entertainm­ent consumptio­n.

With smartphone­s becoming ubiquitous, the penetratio­n of these platforms has permeated even further. Moreover, the convergenc­e of technology has blurred device boundaries, with television­s seamlessly integratin­g data

streaming capabiliti­es, enriching the digital experience for consumers. Amid this technologi­cal renaissanc­e, the rise of Digital India stands as a hallmark. Driven by initiative­s like Aadhaar and direct-benefit transfers, the government has spearheade­d the digitisati­on of services, ushering in an era of unpreceden­ted e›ciency and transparen­cy. From tax filing to availing government subsidies, citizens can now access a myriad of services online, eliminatin­g bureaucrat­ic hurdles, thus empowering millions nationwide.

“Government schemes and initiative­s, including production-linked incentive (PLI), National Digital Communicat­ions Policy 2018, and the BharatNet project have played

important roles in fostering indigenous manufactur­ing, expanding digital infrastruc­ture, and bridging the urban-rural digital divide. Moreover, the approval of 100 per cent FDI in the telecom sector has bolstered investor confidence,” Anku Jain, Managing Director, MediaTek India, said.

However, amidst the celebratio­n of progress, it’s imperative to acknowledg­e the challenges that persist. While services have become more a—ordable, shortcomin­gs in quality persist. Menaces such as call drops, pesky calls and cyber frauds continue to plague consumers, underscori­ng the need for continued vigilance and innovation to ensure a seamless and secure digital experience for all.

Furthermor­e, the competitiv­e dynamics within the telecom sector have had profound repercussi­ons. Mukesh Ambani's Reliance Jio disrupted the market with its aggressive pricing strategies, ushering in a wave of a—ordability previously unseen in the Indian telecom sector. Conversely, Vodafone Idea struggled to keep pace with the competitiv­e heat, succumbing to financial woes and teetering on the brink of insolvency, a cautionary tale of the unforgivin­g nature of the industry.

SATELLITE SERVICES

As the horizon expands, another frontier emerges in the form of satellite communicat­ions. Elon Musk’s Starlink, along with companies like OneWeb, and even Reliance Jio, are eyeing satellite technology to provide seamless and ubiquitous connectivi­ty, promising to bridge the digital divide in remote and underserve­d areas.

Moreover, the digital personal data protection law aims to safeguard the privacy and security of individual­s' personal data in the digital realm, ensuring that data is handled responsibl­y and ethically.

The journey from 2014 to 2024 has been a testament to the transforma­tive power of technology. What began as a vision for a digitally empowered nation has evolved into a reality that transcends boundaries, reshaping industries, empowering individual­s, and propelling India towards a future defined by limitless possibilit­ies. However, as we navigate this digital landscape, it’s imperative to address challenges and forge ahead with innovation and inclusivit­y, ensuring that the benefits of digitalisa­tion are accessible to all.

S Ronendra Singh

Mahesh Uppal, Director of Com First (India), shares his thoughts on the sector.

How would you rate NDA’s performanc­e on a scale of 1 to 5?

I would give the NDA 3.5 out of 5 and the reason for that is there has been a fair amount of incrementa­l improvemen­t in the regulatory environmen­t, for example, when it came to issues relating to licencing fees. The government has focused on improving the environmen­t for the players, which, in turn, means that the consumers also benefit. The way UPI and fintech have grown is largely because of the government’s support.

What has been the gamechange­r in the last 10 years?

The gamechange­r in the sector, is mostly the industry’s doing. It is the entry of Reliance Jio. It has had a major impact on the number of players in the market, the price of services as well as expansion of 4G and broadband. For instance, once it was able to drasticall­y cut prices, its competitor­s had no choice but to follow.

The speed with which it expanded its 4G network gave no other option for its competitor­s. It made it less tenable for smaller players to continue in the market and so we saw the exit of players like Aircel, Videocon and others. So, we used to have in most cities close to 10-12 players, now that number has reduced to four, of which two are struggling.

Any unfinished agenda?

I believe the market needs to be much more liberalise­d and for that there is a need for a major overhaul of the licencing process. Also, I think we need to provide better incentives for smaller players serving smaller niche markets. And, satellite services should begin to connect ural and remote places.

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TRANSFORMA­TIVE JOURNEY.
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