Unlocking India’s connectivity potential

Scindia’s approach introduces pivotal changes in telecom, including stakeholder committees, rural connectivity enhancements, and a revitalised BSNL 4G rollout

In June, Jyotiraditya Scindia took over the reins as the Union Cabinet Minister of Communications from the current Minister for Railways, IT and I&B, Ashwini Vaishnaw. The latest shift in leadership at the telecom ministry has brought key targets and changes to the sector. In a bid to catalyse one of India’s most important industries, the new cabinet minister has taken several vital first steps of progression in various aspects—in which two key themes include involving industry stakeholders and rural connectivity.

Scindia’s early effort to organise the telecom industry includes the decision to set up Stakeholder Advisory Committees (SACs) across various sub-sectors.

The moves have set the ball rolling for a telecommunications market that has seen phases of stagnancy, growth, and flat investment in the past months. Despite India’s 5G rollout, monetisation has remained a concern for India’s telcos, which they addressed recently with a hike in tariffs across all price bands. This, however, has not gone well for most customers, leading to protests in various quarters.

Scindia’s task, therefore, is cut out. On the one hand, the Centre needs to encourage consumers to make higher purchases, which will only happen as 5G applications become critical and users start finding intrinsic value in them. On the other hand, telecom operators have voiced concerns about increasing the average revenue per user (ARPU) among consumers, which they have stated is critical for investing in future technologies.

On this note, here is a look at the first four initiatives undertaken under Scindia’s charge in the telecom industry and how they can impact the overall industry.

Stakeholder Advisory Committees

At the heart of Scindia’s early moves to organise the telecom industry has been the decision to set up Stakeholder Advisory Committees (SACs) across various sub-sectors of the telecom industry. In late June, media reports indicated the setting up six SACs, comprising key executives from different verticals within the industry. This includes committees on telecom Original Equipment Makers (OEMs), Telecom Service Providers (TSPs), the satellite communications (Satcom) industry, Internet Service Providers (ISPs), telecom electronics, and finally, an advisory committee comprising academicians to promote Research and Development (R&D) in the sector.

Each SAC’s representatives include executives of top private firms, industry associations, Public Sector Undertakings (PSUs), centre-affiliated think tank Niti Aayog, and Department of Telecommunications (DoT) officials. For instance, the OEM committee members include domestic players such as HFCL and VVDN Technologies and global giants Cisco, Ericsson, and Nokia, according to three senior industry executives with direct knowledge of the matter.

In the TSP committee, five telcos, including Bharti Airtel, Reliance Jio and Vodafone Idea, are representatives in the SAC, along with the Cellular Operators Association of India (COAI). In the Satcom committee, Jio-SES and Hughes Communications India represent the sector, among others. The Centre for Development of Telematics (C-DOT) is also involved in these committees.

Industry executives have lauded Scindia’s move, flagging it as the first time that the Telecom Ministry has coordinated an effort to seek regular industry feedback and consultations on how the industry should move forward.

“This is undoubtedly a positive move and gives the industry a clear way to pursue discourses with the union minister regularly. The minister is also keen to understand the key pain points, which is a great way to ensure that there is holistic representation from all sectors of the society for a service as key as communications,” said an executive who is a member of one of the six SACs.

“We are using radio access networks in some places and VSAT in other difficult areas. In more difficult locations, we may think of using (direct) satellites.”- JYOTIRADITYA M SCINDIA, Union Minister of Communications, Government of India

Crucially, the first round of meetings has already happened. On 15 July, Scindia tweeted regarding the first SAC meeting with the satcom industry. The minister tweeted, “Chaired the first advisory meeting with the stakeholders of the satellite communications ecosystem. To provide high-quality telecommunication services, discussed areas of interventions to ensure higher penetration of reliable telecom services throughout the country.”

The meeting saw the satcom industry represented by Nelco Limited CEO PJ Nath, OneWeb India Director Rahul Vatts, Reliance Jio Infocomm Chief Regulatory Officer Ravi Gandhi, and DoT Secretary Neeraj Mittal. SAC meetings for telecom electronics and OEMs were held on the same day.

Subsequently, on 17 July, Scindia met Reliance Jio Chairman Akash Ambani, Airtel Chairman Sunil Bharti Mittal and Vodafone-Idea CEO Akshaya Moondra, who met the top minister for the first time after telecom tariff hikes of up to 27% across the industry. Following the meeting, Scindia said that the SACs have identified “a deep working agenda”, and the DoT “will be working together along with the members of the committees” to achieve targeted timed actionable plans.

An official statement issued following the meeting outlined the initial goal of “enhancing service delivery and addressing challenges” in the industry, which would benefit both consumers and telecom operators.

BSNL Targets and Allocation

In tandem with his work with the SACs, Scindia has also set goals for the floundering state-backed telecom operator Bharat Sanchar Nigam Limited (BSNL). The latter, for which a net sum of Rs 82,916 crore (USD 9.9 billion) was set aside for the full FY25 at the latest Union Budget on 23 July, has now been set daily targets to achieve 4G network rollouts.

On 19 July, Scindia said about BSNL: “We are on track to have 100,000 radio access networks in place for BSNL. I can commit that, along with Tejas Networks, BSNL, Tata Consultancy Services (TCS), C-DOT, and all our players, we are forming a Performance Monitoring Unit (PMU)—which will set not monthly or weekly but daily targets. The DoT Secretary Mittal will then monitor these.” TCS presently has a USD 1.83-billion contract for rolling out BSNL’s 4G network.

Meanwhile, the daily operations of fellow state-run telecom operator Mahanagar Telephone Nigam Limited (MTNL) are being transferred to BSNL, Scindia affirmed. At the same time, assets under MTNL will be monetised to pay off its debts.

Notifying Rules Under Telecom Act, 2023

Scindia has also affirmed that “all rules” under the Telecommunications Act, 2023, one of the last legislations cleared by the previous government, will be published within 180 days from mid-July. The minister addressed this issue at the India Mobile Congress 2024 curtain raiser event, slated to be held later this year.

The Centre notified 39 rules under the Telecom Act, 2023 in June. However, key regulations have yet to be published, including administrative allocation of satellite spectrum, a new telecom dispute resolution mechanism, and mandatory biometric verification of users by all telcos. Scindia affirmed that the same will be done within the next six months. The move is expected to boost ease of doing business in India’s telecommunications industry, a critical factor for global investors to consider.

The ministry has identified 24,000 villages that still need connectivity and promised a timeline of 12 months to roll out services in these circles.

After the rules are published, the Telecom Act, 2023, which came after the Ministry of Electronics and Information Technology (MeitY’s) Digital Personal Data Protection Act, 2023, will supersede the latter in terms of being fully notified and operationalised.

Rural Network Connectivity

Finally, in the last week of July, Scindia announced intentions for “100% village network connectivity” in India—a key factor for ubiquitous connectivity. On this note, the minister added that the Centre has identified 24,000 villages that still need connectivity and promised a timeline of 12 months within which network services are designed to be rolled out in these circles.

On this note, Scindia further affirmed that the Ministry of Communications is rolling out “a special scheme”, for which funds of Rs 26,500 crore (USD 3.2 billion) have already been sanctioned.

“One of the biggest problems in connectivity is terrain, and we are doing two things to resolve that—first, provisions of the new Telecom Act and new rules have been circulated to give us access to these regions. Second is a mix of technologies—in some places, we are using radio access networks, and in other places, which are difficult to get to, we are using VSAT technologies. In more difficult places, we may think of using (direct) satellites,” Scindia elaborated on the initiative.

While network connectivity and saturation in urban circles are high, connecting the final mile will be vital to ensuring better connectivity in a nation where data connectivity is already among the least expensive in the world.

By Shubhendu Parth & Vernika Awal

shubhendup@cybermedia.co.in