Government’s Commitment to Keeping India’s Telecom Services the Most Affordable Worldwide

Union Telecom Minister Ashwini Vaishnaw has expressed the government’s commitment to keeping India’s telecom services among the most affordable globally. He made this statement during an interview at the India Mobile Congress 2023. According to the Cellular Operators Association of India, telecom operators have struggled to generate revenue from 5G services since their launch last year.

All About Indian Telecom Services’ Plans

The current average revenue per user (ARPU) in India falls in the range of ₹140-200, while the global average is between ₹600-850 and approximately ₹580 in China. Analysts suggest that telecom operators need an ARPU in the ₹270-300 range over the next three years to cover the investments made in building 5G networks.

Telecom operators have been advocating for large data-consuming apps, numbering around 4–5, to share revenue based on the business they generate from India to offset network costs. As of now, only Bharti Airtel and Reliance Jio have introduced 5G services, with an estimated combined investment of ₹3 lakh crores, including spectrum costs. However, they have not yet implemented charges for 5G data usage.

Vodafone Idea, facing financial challenges, announced plans to invest significantly in rolling out a 5G network and expanding 4G coverage in the coming quarters. BSNL is also in the process of deploying a 4G network that will be upgraded to 5G following Diwali.

When questioned about India’s 6G roadmap, Minister Vaishnaw mentioned that the Prime Minister has set a target for India to take a leading role in 6G technology. The International Telecommunication Union, a United Nations body in charge of setting international telecom standards, has developed and approved the Bharat 6G Vision.

An alliance called the Bharat 6G Alliance has been formed, consisting of industry, academia, students, and government entities, to work on 6G technology. Different groups within the alliance are diligently focused on developing new technology in areas like antennas, waveforms, and equipment to help India become a leader in 6G technology.

Additionally, the Minister highlighted the initiation of a second round of telecom reforms aimed at protecting users and ensuring the safety and trustworthiness of the cyber world. These reforms build on previous measures taken in September 2021 to alleviate the financial burden on telecom operators and inject liquidity into the sector, addressing issues such as adjusted gross revenue dues and their impact on mobile service providers.