Context: In the India Mobile Congress (IMC) 2025, the Minister of Communications announced that India is the second largest telecom market in the world and will have 1 billion internet users by the end of FY26.
Relevance of the Topic:Prelims: India’s Telecom & Internet sector- Key Trends and Govt. Initiatives.
Growth in India’s Telecom and Internet Sector:
In the last decade-
- India became the second largest telecom market in the world. India’s mobile market witnessed a growth from roughly 1 billion to 1.2 billion customers.
- The Internet market has grown from around 250 million to 974 million subscribers.
- The broadband market, with speeds greater than 2 Megabits per second (Mbps), has grown from 66 million (2014) to 940 million in 2025. India is expected to hit one billion Internet users in 2026.
- Rise in Affordability: Call prices are down from 50 paise per minute to 0.003 paise per minute; data from 1 GB at ₹287 to ₹9 per GB. India is the cheapest data market in the world; the global average is $2.49 per GB.
- Growth in manufacturing: From importing 80% of mobile phone requirements to exporting ₹1.75 lakh crore worth of mobile phones.
- Patents of 6G: India ranks among the top six countries globally in terms of 6G patent filings. Bharat 6G Alliance is working to contribute a minimum 10% of 6G patents to the world.
Government Policies that contributed to the growth:
- Universal Service Obligation Fund (Digital Bharat Nidhi): USOF is funded by a 5% Universal Service Levy on telecom operators' Adjusted Gross Revenue to finance telecom expansion in rural areas. Digital Bharat Nidhi aims to ensure transparent management and targeted deployment of the funds.
- BharatNet: Ambitious project aimed at providing affordable high-speed broadband connectivity to all Gram Panchayats (GPs) in India. It is the largest public sector investment in connectivity to the grassroots level costing over $16.9 billion.
- In the first phase, almost 7 lakh kilometres of fibre optic cables were laid and 2.14 lakh gram panchayats were connected.
- The ongoing BharatNet II project aims to connect the remaining gram panchayats.
- Advanced technology inBharatNet II:
- Use of Multiprotocol Label Switching (MPLS) routers instead of Gigabit Passive Optical Network (GPON) routers for higher redundancy levels.
- Ring topography instead of linear topography to prevent incidents of single breakage disrupting all the downstream gram panchayats.
- Central network operating centre to monitor and maintain the network throughout the country.
- Provide an Internet leased line with a minimum speed of 25 Mbps to every subscriber.
- PM-WANI (WiFi Access Network Interface): To proliferate broadband access through public Wi-Fi networks and create a robust digital communications infrastructure in India, especially in rural areas.
- Bharat 6G Alliance: Launched in 2023 by DoT, it is a collaborative platform that brings together the government, industry, and academia to develop 6G technology in India. It is working to contribute a minimum 10% of 6G patents to the world, development of at least one new radio technology originating from India, and creation of at least 10 standard essential patents (SEPs).
- PLI Scheme for Smartphones: India has become a key player in global smartphone exports. Handsets are now the second highest exported products from India. As a result, India has come a long way from importing 80% of mobile phones to exporting ₹1.75 lakh crore worth of mobile phones (~$20 billion).
Also Read: India ranks among top six nations globally in 6G patent filings
India needs to increase investment in research and development (R&D) to become the creators and innovators of global products in the telecom space.