India’s Telecom Sector Embraces AI and 6G Advancements Amidst Record Subscriber Growth
New Delhi, December 27: India’s telecom industry, which has amassed a remarkable 1.2 billion subscribers, is now diving into the realms of Artificial Intelligence (AI) and pushing the envelope on 6G technology. The sector, which has experienced unprecedented growth, saw its average monthly wireless data usage reach 21.30 GB per user by October 2024.
According to the Cellular Operators Association of India (COAI), the deployment of more than 460,000 5G BTS sites has significantly boosted 5G adoption, with user numbers surpassing 125 million. Projections suggest that by 2026, this figure will soar to 350 million. The Fixed Wireless Access (FWA) technology, a major use case for 5G, has also seen rapid expansion, with nearly 3 million connections established in just one year.
As a critical contributor to India’s GDP and employing over 4 million people, the telecom sector is now focusing on AI and 6G. In fact, more than 55% of technology, media, and telecommunications (TMT) companies in India have fully integrated AI into their operations, with an additional 37% scaling up their AI initiatives, as reported by KPMG India.
The government’s Bharat 6G Vision initiative aims to secure 10% of the global 6G patents and is actively supporting research and development. This includes funding for advanced testbeds and assessing proposals to accelerate the development of the 6G ecosystem.
Despite these advancements, the telecom industry faces several challenges. One of the major concerns is the burden of Large Traffic Generators (LTGs), which have forced Telecom Service Providers (TSPs) to invest Rs 10,000 crore in 2023. The lack of contributions from LTGs has also led to a loss of Rs 800 crore in AGR dues and taxes for the Indian government.
Additionally, COAI has raised concerns over unregulated over-the-top (OTT) communication platforms. The association argues that these platforms create an uneven playing field, as TSPs must comply with stringent security regulations. COAI advocates for the implementation of traceability and privacy rules for OTT services to ensure fair competition and security.
The allocation of the 6 GHz spectrum band, vital for 5G, remains a critical need, and COAI has called for immediate allocation to mobile networks. The rise of unauthorized Wi-Fi 6E routers sold online also poses a challenge that needs to be addressed. Moreover, issues such as infrastructure constraints, Right of Way (RoW) challenges, and spectrum interference are hindering the speed of network rollouts, with the newly proposed Quality of Service (QoS) norms considered impractical by TSPs.
To further streamline the sector, COAI is urging the extension of Unsolicited Commercial Communication (UCC) regulations to OTT services to tackle the persistent issue of spam calls and messages.
Despite these hurdles, government initiatives such as the elimination of the Wireless Operating License (WOL) and the waiver of bank guarantee requirements for deferred spectrum payments have provided significant financial relief. Additionally, the Supreme Court’s ruling on tax credits for telecom tower components has further eased the sector’s financial burdens.
As India’s telecom sector continues to evolve and embrace new technologies, the path forward will require a careful balance of innovation, regulation, and collaboration between the government and industry stakeholders.
