India’s Telecom Sector in 2023: A Year of Striking Growth and Challenges 

India’s telecom sector experienced remarkable growth in 2023, marked by the nationwide rollout of 5G, positioning the country as a global leader with over 3.97 lakh 5G BTS sites across 738 districts by November. The industry boasts 1.148 billion wireless subscribers, reflecting a 1.9% growth from the previous year, with average data usage per subscriber reaching 17.4 GB per month. 

Challenges in Network Cost Contribution 

Despite overall growth, the telecom sector faces a significant challenge related to Large Traffic Generating (LTG) digital platforms. Telecom Service Providers (TSPs) demand equitable cost distribution from LTGs to address rising infrastructure expenses and network deployment costs. The recent US Senate bill aligns with the industry’s stance, emphasizing the need for LTGs to contribute financially to network costs. 

6GHz Band Allocation for 5G Advancements 

The allocation of the 6 GHz spectrum band holds strategic importance for improving mobile networks’ quality and coverage in India. Designating the full 6 GHz band for 5G communications addresses the escalating demand for data services, supporting wide-area applications like drones, telemedicine, and smart cities. The recent global agreement to open this spectrum band for International Mobile Telecommunications (IMT) underscores its significance for 5G and future 6G technologies. 

Major Issues Demanding Attention 

Pending issues, including the second phase of 5G spectrum allocation, Right of Way (RoW) permissions, and high levies, pose challenges. TSPs seek a supportive regulatory environment and resolution of these issues to ensure sustained success. High commercial electricity tariffs also impact the sector’s investment and growth, requiring government attention. 

Developments in 2023 

Indian TSPs completed their minimum 5G rollout obligations in 22 Licensed Service Areas within 10 months, making India the second-largest 5G network globally. The introduction of 6G technology, outlined in Prime Minister Narendra Modi’s vision document, sets ambitious goals for 2030. Establishing 6G labs, industry collaboration, and the Telecommunications Bill 2023 mark significant strides towards a robust digital communications landscape. 

Looking Ahead: 5G and Regulatory Progress 

As India solidifies its global leadership in 5G, industry stakeholders anticipate dynamic use cases and collaborative efforts with LTGs. The evolving regulatory landscape is expected to address challenges, providing a supportive framework for innovation while ensuring fair competition. The industry envisions leveraging 5G for diverse applications, contributing to India’s digitally empowered future. 

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