Government Addresses Challenges of 5G Investments and Rising Spectrum Pressure

The government is tackling issues related to insufficient returns on 5G investments while needing to expand telecom infrastructure due to rising data usage, a senior official stated. At an ICRIER Prosus Centre event, telecom secretary Neeraj Mittal highlighted that India's median data speed rose from about 99-100 Mbps in September to 151 Mbps. On average, individuals consume roughly 29 gigabytes of data monthly.

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Mittal noted that most data consumption is for entertainment, necessitating continuous telecom infrastructure enhancement. As data flow increases, there will be significant pressure on spectrum, requiring new spectrum for mobile and broadband use. The transition from 5G to 6G will demand substantial capital expenditure.

5G Investment Challenges

Despite substantial investments in 5G, its use cases remain underutilised across the country. Mittal mentioned that the shift from 4G to 5G has primarily resulted in higher speeds. Private operators are projected to have invested around Rs 70,000 crore in telecom infrastructure and radiowave assets in 2024 alone to broaden next-generation 5G service coverage.

Reliance Jio and Bharti Airtel offer free access to 5G services within their 4G subscription plans. Meanwhile, Vodafone Idea and BSNL have yet to launch their 5G services. BSNL has completed installing 80,000 mobile towers for 4G services, marking one of the largest deployments by an operator.

Device Affordability and Infrastructure Costs

Another challenge is the affordability of devices, which many people in the country find difficult to afford. Mittal stated that these issues are being addressed by the government over time. Telecom companies have urged BigTech firms like Google, Amazon, Meta, and Netflix to contribute financially towards building network infrastructure in India.

The Cellular Operators Association of India (COAI) has been advocating for a fair usage policy on foreign apps due to the significant data load they place on networks. However, industry bodies representing internet firms argue that imposing costs on select apps would breach net neutrality rules, a point COAI disputes.

The government's focus remains on balancing investment returns with infrastructure expansion needs as data consumption continues to grow. Addressing these challenges is crucial for sustaining the telecom sector's development and ensuring equitable access to advanced technologies.