India has experienced remarkable growth in its 5G networks and telecommunications industry. The country has significantly improved its international ranking on mobile broadband speeds, moving from 118 to 15. The Indian government has allocated funds for research and development in the telecom sector and established the Telecom Technology Development Fund, fostering innovation and collaboration. India's teledensity and wireless telephone connections have increased, and the introduction of the Bharat 5G Portal has propelled its 5G capabilities. The government has invested in infrastructure development, capital expenditure, and trade in the telecommunications sector. India aims to integrate its value chain with the West and foster innovation in cutting-edge industries. India's progress in the telecommunications industry reflects its commitment to technological advancement, digital transformation, and a digitally empowered future.
India has emerged as one of the fastest-growing countries in terms of 5G network development, catapulting its international ranking on mobile broadband speeds from 118 to an impressive 15 in March 2024, according to the recently released Economic Survey 2023-24. This significant leap signifies India's rapid progress in the telecom sector and its commitment to digital transformation.
Recognizing the need for substantial investment in research and development (R&D) and commercialization of telecom technologies, the Indian government has taken a proactive step. It has decided to allocate 5% of the annual collections from the Universal Services Obligation Fund (USOF) specifically for funding R&D in the telecom sector. This strategic move aims to support the growth of digital services in India, which is poised for rapid expansion.
The Telecom Technology Development Fund, established in 2022, has already witnessed substantial participation from various stakeholders, including start-ups, micro, small, and medium enterprises (MSMEs), academia, and industry. This collaborative effort highlights the inclusive and dynamic nature of India's telecom ecosystem, fostering innovation and nurturing emerging players.
India's overall teledensity, the number of telephones per 100 population, has experienced a commendable increase from 75.2% in March 2014 to 85.7% in March 2024. Furthermore, the country boasts a remarkable number of wireless telephone connections, reaching 116.5 crore by the end of March 2024.
The introduction of the Bharat 5G Portal has been instrumental in propelling India's 5G capabilities and facilitating innovation, collaboration, and knowledge-sharing within the telecom sector. This platform serves as a catalyst for the growth of cutting-edge technologies and positions India as a frontrunner in the global 5G race.
In terms of infrastructure, India currently boasts an impressive 8.02 lakh mobile towers and 29.37 lakh Base Transceiver Stations (BTSs). Notably, the number of 5G BTSs has reached 4.5 lakh, demonstrating the country's commitment to embracing advanced technologies. Additionally, the government has initiated a project with a total cost of Rs 26,316 crore to provide 4G mobile services in 24,680 uncovered villages, including remote and challenging areas. Moreover, 6,279 villages with only 2G/3G connectivity are set to be upgraded to 4G, ensuring comprehensive network coverage across the country.
The Economic Survey data also reveals that the government's capital expenditure (capex) in telecommunications witnessed an 8.5% year-on-year increase, amounting to Rs 59,400 crore in FY24. This investment underscores the government's commitment to building a robust telecom infrastructure to support the growing demands of a digital society.
India's prowess in the services trade is also evident in the telecommunications sector. The Economic Survey 2023-24 highlights that exports from "telecommunications, computer, and information services" experienced a notable 7.41% increase, reaching $163.6 billion in FY24, compared to $152.3 billion in FY23. Furthermore, imports in this sector witnessed a modest 5.5% rise, amounting to $20.9 billion during the same period. These figures reflect India's growing influence in the global telecommunications market.
Looking ahead, India aims to integrate its value chain with that of the West, particularly in sectors like renewable energy and advanced technologies such as artificial intelligence, semiconductors, and next-generation telecommunications. This strategic vision aligns with India's commitment to fostering innovation and technological advancements, enabling the country to become a global leader in cutting-edge industries.
India's internet landscape has also witnessed significant growth, with the number of internet subscribers surging from 25.1 crore in March 2014 to an impressive 95.4 crore in March 2024. Of these subscribers, 91.4 crore access the internet through wireless phones, highlighting the widespread accessibility of digital services. Moreover, the internet density in India reached 68.2% in March 2024, accompanied by a substantial decline in the cost of data. These developments have significantly improved the average wireless data usage per subscriber, further empowering individuals with digital connectivity.
To ensure comprehensive broadband connectivity, the amended BharatNet national broadband program is being rolled out to connect all Gram Panchayats in the country. As of April 30, 2024, 6,85,501 km of optical fiber cable has been laid, connecting 2,11,021 Gram Panchayats via Optical Fiber Cable (OFC), while a total of 2,12,229 Gram Panchayats are service-ready (OFC+ Satellite). Additionally, plans are underway to deploy Fiber to the Home (FTTH) connections and pilot projects across rural areas, further enhancing data usage and digital connectivity in remote regions.
The government's commitment to fostering healthy competition, reducing regulatory burdens on telecom companies, andprotecting consumer interests is evident through the implementation of multiple structural and procedural reforms. The Telecommunications Act 2023 consolidates the laws pertaining to telecommunication services/networks and spectrum assignment, among other crucial aspects. These reforms aim to create a conducive environment for the telecom industry, promoting fair competition and ensuring consumer satisfaction.
Recognizing the evolving needs of the industry, steps have been taken to align engineering programs in electronics and communications with the latest technological trends. The National Council for Vocational Education and Training (NCVET) has approved skill courses related to 5G and 5G-enabled technology, while the All India Council for Technical Education (AICTE) has identified 5G as a thrust area in its faculty development program. These initiatives reflect India's proactive approach to nurturing talent and equipping future professionals with the skills needed in the telecom sector.
Test labs play a vital role in ensuring the functionality, reliability, and interoperability of telecom devices. The Economic Survey emphasizes the importance of specialized test facilities equipped with advanced infrastructure to evaluate the performance of various telecommunications equipment. These labs, which include more than 69 designated conformity assessment bodies, provide EMI/EMC, safety evaluations, technical requirements, and RF testing for telecom products. Such rigorous testing guarantees the quality and compliance of telecom devices in the Indian market.
The government has also introduced guidelines for the Spectrum Regulatory Sandbox (SRS) or Wireless Test Zones (WiTe Zones) as part of the Millennium SRS initiative. These initiatives foster innovation, enhance ease of doing business, and promote the "Make in India" campaign in the telecommunications sector. By providing a simplified regulatory framework, the SRS encourages R&D activities, exploration of spectrum bands, and technological advancements. WiTe Zones are categorized into urban and remote areas, allowing experimentation across various frequency bands, and participation is open to academia, R&D labs, telecom providers, and other stakeholders.
India's remarkable progress in the telecommunications industry is a testament to its unwavering commitment to technological advancement and digital transformation. With a focus on integrating its value chain with the West and embracing emerging technologies, India is poised to become a global leader in sectors such as renewable energy, artificial intelligence, semiconductors, and next-generation telecommunications. As the country continues on this trajectory, it empowers its citizens with greater connectivity, fosters innovation, and paves the way for a digitally empowered future.
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