Total telephone connections in India grew by 18.
8 per cent from 9,961 lakh in
2014-2015 to
11,834 lakh in 2018-19.
The overall tele-density in India stands at 90.45 per cent, the rural tele-
density being
57.35 per cent and urban teledensity being 160.71 per cent
India is the world's second-largest telecommunications market.
India has a subscriber base of 1.17 billion.
the second-highest number of internet subscribers globally.
Telecom sector is the 3rd largest sector in
terms of FDI inflows
Adjusted Gross Revenue (AGR): It is the usage and licensing fee that
telecom operators are charged by the Department of
Telecommunications (DoT). It is divided into spectrum usage charges
and licensing fees that are fixed between 3-5% and 8% respectively.
Universal Service Obligation Fund (USOF): USOF ensures that there is
universal non-discriminatory access to quality ICT services at
economically efficient prices to people in rural and remote areas.
charged at the rate of 5%,
significance?
India is the 2nd-largest telecommunications market.
2nd-largest country in terms of internet subscribers-subscriber base of
1.20 billion
world’s highest data usage.
propped up vital social sectors such as healthand education through
telemedicine and online learning.
According to estimates, some 35% of the GDP was enabled by the
sector during the COVID period.
India is on its way to becoming the 2nd-largest smartphone market
globally by 2025.
Contributor to Government’s Non-Tax Revenue:via spectrum auctions,
one-time fee from new operators and recurring license fees and
spectrum charges
Contribution in Economic Growth:
Every 10% increase in investment in telecom leads to a 3.2% increase in
GDP growth for India.
Jan Dhan-Aadhar-Mobile (JAM) Trinity for Inclusion:include the
marginalised and unbanked through technology.
Initiatives:
Full Mobile Number Portability (MNP):to change their licence service
area and still retain their mobile number.
BharatNet:to link each of the 2.5 lakh Gram Panchayats of India
through optical fibre network.
Draft Telecommunication Bill 2022:expand the definition of
"telecommunication services" by including Over-the-top (OTT)
communication services under the same umbrella,
also lays down provisions for unutilised spectrum to be shared, traded,
leased, surrendered, returned, or surrendered.
National Optical Fiber Network (NOFN)
provide broadband connectivity to 2.5 lakh gram panchayats for various
applications like ehealth, e-education, and e-governance.
National Digital Communications Policy-2018
creating four million additional jobs in the Digital Communications
sector.
aims to provide universal broadband connectivity at 50 Mbps to every
citizen.
target of providing 1 Gbps connectivity to all Gram Panchayats by 2020
and 10 Gbps by 2022
FDI up to 100% is permitted for infrastructure providers offering dark
fibre, electronic mail and voice mail
Production Incentive Scheme (PLI) for Large- scale Electronics
Manufacturing.
‘Tarang Sanchar’ – a web portal sharing information on mobile towers
and EMF Emission Compliances
Rationalization of AGR: by exclusion of non-telecom revenue on
prospective basis
Rationalization of Bank Guarantees: the bank guarantees requirement is
now just 20%.
Spectrum tenure increased to 30 years for future auctions (from 20
years).
Easing of SACFA (Standing Advisory Committee on Frequency
Allocation) clearance for telecom towers
will accept data on a portal on self-declaration basis
Telecom Regulatory Authority of India
sole authority to take binding decisions on the fixation of tariffs for the
provision of telecommunications services.
Telecom Disputes Settlement and Appellate Tribunal
mechanism of dispute resolution among the stakeholders of the telecom
sector.
Issues?
Rural-Urban Disparity:share of telecom subscribers between urban
(55.42%) and rural (44.58%) areas
fixed broadband penetration-is among the lowest in the world at only
1.69 per 100 inhabitants.
Right of Way Challenge:due to complex legal procedures across states,
non-uniformity in levies, and approvals from the Forest Department
Issue with Over the Top Platforms (OTT):OTT platforms like Whatsapp
and Telegram use network infrastructure of telecom service providers
to provide services such as voice calls and SMS services.
Lack of Spectrum Availability:less than 40% as compared to European
nations and 50% as compared to China
Mismanagement of E-waste:95% of e-waste is illegally recycled by
informal waste pickers.
Lack of Optical Fibre Connectivity:need 16 times more fibre to
smoothly transition to 5G.
Possible Duopoly in Telecom Market:
Heavily Indebted Industry:under a debt of over ₹4 lakh crore
tariff war: Post entry of Reliance Jio
Lack of Telecom Infrastructure in Semi-rural and Rural areas:
Lack of fixed-line penetration-Only around 25%-whereas in developed
nations, it is in excess of 70%.
Way Forward?
Promoting Digital Literacy:Digital Foundation Centres can be
established in rural areas
set up sector-specific data management and grievance redressal
standards (including OTT platforms)
Single Window for Right to Way:between the Centre, States and Local
Bodies
Prioritising Research and Development in Telecom:where hardware
components like mobile handsets, CCTV cameras, touch screen
monitors, etc. can be manufactured and exported
government could form a pool of capital to buy the spectrum from
telcos
Special Zero-Coupon Bonds:to settle debts arising from AGR funding
issues
Lower License fee: license fee of eight per cent of Adjusted Gross
Revenue including five per cent as Universal Service Levy (USL) one
of the highest in world.
Reduce reserve price for spectrum auction:induce “truthful bidding”,