A lookback at the year 2022 for Indian Telecom

Besides bringing in a radical transformation in the digital processes and efficiencies of industries and in the regions of governance and connectivity, 5G is also expected to generate significantly more direct and indirect job opportunities.

With 1.17 billion subscribers, including both wireless and landline connections, as of August 2022, India's telecom sector is the second-largest in the world. The telecom sector has achieved numerous firsts this year, with 5G being the stand-out, thanks to changing consumer habits, awareness about technology and extending widely used 3G and 4G coverage.

As 2022 draws to a close Lt Gen SP Kochhar, Director General COAI, presented his thoughts on how the Indian Telecom industry has fared overall in 2022.

In the post-pandemic era, our dependence on the telecom sector has increased rapidly and has become a part of our lives, which has created more demand for strong networks and better connectivity. Catering to this increased demand, the telecom sector has delivered commendably in 2022. The structural and procedural reforms in the telecom sector approved by the Government last year such as e-KYC, rationalization of Bank Guarantee, No Spectrum Usage Charge (SUC) for spectrum acquired in future auction, 100 percent FDI under the automatic route, Rationalization of Adjusted Gross Revenue, Rationalization of Interest Rates and penalties, and Facilitating Right of Way (RoW) have shown a positive impact in 2022.

One of the major landmarks for India this year was the much-awaited launch of 5G services in the country by the Hon’ble Prime Minister Shri Narendra Modi during the India Mobile Congress 2022. Besides bringing in a radical transformation in the digital processes and efficiencies of industries and in the regions of governance and connectivity, 5G is also expected to generate significantly more direct and indirect job opportunities. This also calls for more on-the-job training and skill development programs to manage the technology. The deployment of 5G will be a major force in realizing India’s vision to become a USD 1 trillion digital economy by 2025.

The Indian Telegraph Right of Way (Amendment) Rules, 2022, will help the industry in faster proliferation of Digital infrastructure, via deployment of small cells, aerial fiber, and use of optimal use of street furniture to enhance connectivity. There is a provision for small cells, electric poles, access to street furniture, etc. introduced for the easy and smooth deployment of 5G networks. We are delighted with the provision for legal backing of Right of Way, which has been the biggest hindrance in the roll-out of 5G.

The industry had numerous concern areas that are under consideration in the reformative draft Indian Telecommunication Bill, 2022. Several positive provisions have been made in the draft Bill with the objective to enable Regulatory certainty, ensure a level playing field, and apply the law prospectively. The mandates related to effective use of spectrum, license framework, dispute resolution and graded penalties will improve the efficiency of the law. The draft Bill also lays emphasis on spectrum related reforms such as Refarming and Harmonization, Sharing/trading/leasing, Technology agnostic use, Returning unused spectrum to Government, Surrender of Spectrum, etc. which will help in making prudent use of the national resource.

Further, the draft Bill lays emphasis on the “Protection of Users” with key provisions on KYC, Protection from Unsolicited messages, Identity of caller to be visible to receiver, Duty of user to give correct KYC, etc. This will help tackle the issues directly impacting the general public i.e., the issues of Security, Fraud and Unsolicited Telemarketing calls and messages.

The industry lauds the reforms brought in the areas of wireless licensing which has sped up investments and made it simpler to obtain the certificate clearance from the Standing Advisory Committee on Radio Frequency Allocation (SACFA), which is necessary to place small cells on street furniture, along with a marked reduction in the processing fee.

Digitization of processes introduced by the government on several fronts is enhancing ease of doing business in the country. Bringing telecom equipment into the country, for example, has been made easier as the entire import license process has been made online, and self-declaration based clearance adopted instead of earlier scrutiny-based clearance. This will help in quicker deployment of the equipment in the country. Similar provisions have been introduced to make it easier to get technical clearance from DoT for telecom towers. Digitization of Records and auto renewal of licenses are also resulting in drastic reduction in the service delivery time. The entire licensing process has been made online through the Saral Sanchar portal, resulting in reduction in times from an average period of 1 year earlier, to just 2 months.

The Government also released the draft Data Protection bill for discussion and deliberations with the relevant stakeholders. This is a landmark step which will have important implications in the year to come.

The telecom sector is enthused and motivated by the impetus being provided by the Government towards strengthening the critical telecom ecosystem in the nation, and we look forward to providing all the requisite support to help realize the collective vision of a ‘Digital India’ for all. The government's efforts have energized and galvanized the industry, and we look forward to providing all the necessary support towards fulfilling the nation’s objectives.