Government aims to keep India's telecom services most affordable globally
India's Union Communications Minister Ashwini Vaishnaw has emphasized the government's commitment to maintaining the country's telecom services as the most cost-effective worldwide. At the India Mobile Congress 2023, Vaishnaw told PTI, "From the government side we are very clear. We would like telecom service to continue to remain the most affordable in the entire world." This statement came amid challenges faced by telecom operators in generating revenue from 5G services, per the Cellular Operators Association of India.
Telecom operators seek higher ARPU for 5G investments
Industry experts believe that to recoup their investments in 5G infrastructure, Indian telecom operators require an average revenue per user (ARPU) between Rs. 270-300 in the next three years. Presently, India's ARPU ranges from Rs. 140-200, significantly lower than the global average of Rs. 600-850 and Rs. 580 in China. To offset network expenses, telecom operators have even suggested that four-five apps responsible for substantial traffic on their networks should contribute a revenue share based on their earnings from India.
Airtel and Jio invested Rs. 3 lakh crore in 5G
Of the four major mobile service providers in India, only Bharti Airtel and Reliance Jio have launched 5G services. The combined investment of the duo in 5G networks, including spectrum costs, is estimated at around Rs. 3 lakh crore. Neither company has begun charging for 5G data usage. Meanwhile, Vodafone Idea's non-executive additional director, Kumar Mangalam Birla, announced at the aforementioned event the company intends to invest significantly in deploying its 5G network and expanding 4G coverage in upcoming quarters.
India aims for leadership in 6G technology
Earlier, addressing inquiries about India's progression toward 6G, Vaishnaw revealed that Prime Minister Narendra Modi had set a goal for the Indian telecom sector to lead in 6G technology. He said the Bharat 6G Vision has been established and approved by the International Telecom Union, a United Nations (UN) organization responsible for determining global telecom standards. Vaishnaw added the Bharat 6G Alliance, consisting of industry, academia, students, and government, has also been formed to focus on 6G development.
