Indian Telecom Sector Leverages AI and 6G as 5G Expansion Accelerates With a subscriber base of 1.2 billion, the sector's momentum is reflected in soaring data consumption, averaging 21.30 GB per user monthly by October 2024
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India's telecom industry is experiencing unprecedented growth, driven by the rapid expansion of 5G and a surge in AI integration. With a subscriber base of 1.2 billion, the sector's momentum is reflected in soaring data consumption, averaging 21.30 GB per user monthly by October 2024.
The Cellular Operators Association of India (COAI) reports that over 460,592 5G BTS (Base Transceiver Station) sites have been deployed, pushing 5G user numbers beyond 125 million. This figure is expected to climb to 350 million by 2026. A standout development in this journey is the swift adoption of Fixed Wireless Access (FWA), which crossed 3 million connections within just a year.
AI integration is reshaping the telecom landscape, with 55 per cent of Technology, Media, and Telecommunications (TMT) firms fully adopting AI technologies, while another 37 per cent are in the scaling phase, according to KPMG India. Concurrently, the government's Bharat 6G Vision initiative is propelling India to secure 10 per cent of global 6G patents, with dedicated funding channeled into advanced testbeds and ecosystem acceleration projects.
However, the sector's path forward is not without hurdles. COAI highlights the strain posed by Large Traffic Generators (LTGs), which cost Telecom Service Providers (TSPs) Rs 10,000 crore in investments in 2023 alone. The lack of contributions from LTGs also resulted in Rs 800 crore in lost Adjusted Gross Revenue (AGR) dues and taxes for the exchequer.
Also, regulatory disparities between TSPs and unregulated OTT communication platforms remain a contentious issue. COAI calls for the enforcement of privacy and traceability rules on OTT platforms to level the playing field. Additionally, urgent spectrum allocation for the 6 GHz band is essential for 5G expansion, while unauthorized Wi-Fi 6E routers sold online pose interference risks that require immediate attention. Infrastructure limitations, Right of Way (RoW) challenges, and spectrum interference continue to slow network rollouts. Recently proposed Quality of Service (QoS) norms have drawn criticism from TSPs, citing impracticality. Addressing spam remains a priority, with COAI advocating for Unsolicited Commercial Communication (UCC) regulations to extend to OTT platforms to combat nuisance calls and messages effectively.
