The Adani Group recently announced it is entering the telecom sector by participating in the 2022 5G spectrum auction. According to the analysts, Adani Data Networks has already bid on 5G ether. But Adani Group only focuses on business services with 5G. The activities in the consumer market are still far from reality for the Adani Group. It is also very understandable because the industry experts also believe that the 5G revenues of consumers are very low or negligible compared to the revenues that the companies will make after the launch of services.
The point is that Ashwini Vaishnaw, India’s telecoms minister, believes there is room for the entry of a new player in India’s telecoms sector. According to ET Telecom, Vaishnaw made comments about how the average data usage in India is more than the global average and how there are one billion users in the country.
New regulatory framework required
The Minister of Telecom spoke about the need for a new regulatory framework. Vaishnaw said India’s telecom sector is now implementing new technology. But these new age technologies are governed by the laws created nearly four decades ago. It makes no sense, and it would never help the Indian telecom sector.
For the ignorant, the Telecommunications Department (DoT) has already released a consultation paper on the need for a new regulatory framework in the Indian telecom sector. It is high time for India to formulate a new regulatory framework as connectivity with 5G is definitely on a different level and way than any previous generation network technologies.
Is India’s telecom sector in a good place now?
Well, here’s a simple answer: the telcos can no longer complain after what the government has already done for it. While it is understandable that the telecom sector is the lifeblood or backbone of the digital economy that the Modi government is trying to create, there is a certain limit to where the budget can be extended to the telecom sector to help it.
The government has announced several emergency measures to address the liquidity problems for the telcos. The Department of Telecommunications (DoT) is already working on more emergency measures to make it easier for the telcos to do business.
If the industry’s average revenue per user (ARPU) continues to climb, and if the new set of regulatory framework is a boost to the industry, we may see new players jump in the Indian telecom sector. Adani Group, which is already there, can expand into consumer services. But judging by the words of the telecom minister, we may see more new players.
