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India's Telecom revolution: From early Landline days to 5G

Telecom industry in India has undergone significant revolution over the past few decades, transforming the country's communication landscape

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Ayushi Singh
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What is in for the telecom sector

World Telecommunication and Information Society Day (WTISD) focuses this year on “Empowering the least developed countries through information and communication technologies.” The aim behind the observance is to raise awareness of the potential of the internet and other information and communication technologies (ICT) in bringing societies and economies together by bridging the digital divide.The telcos are uniquely positioned to bring connectivity to underserved areas, and as they transition to technology companies, they are bringing innovative mobile solutions that are transforming lives, creating opportunities, and contributing to sustainable development.

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The telecom industry in India has undergone a significant revolution over the past few decades, transforming the country's communication landscape. Here are some key developments and milestones that have shaped the revolution of the telecom industry in India:

  1. Early Days and Landlines :
  • The first telegraph line in India was established in 1851 between Kolkata and Diamond Harbour.
  • The Indian telegraph network was gradually expanded, and by the early 20th century, telephone exchanges were set up in major cities.
  • The Indian Posts and Telegraphs Department (P&T) handled telecommunication services until the formation of the Department of Telecommunications (DoT) in 1985.
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Liberalization and Privatization: In the 1990s, the Indian government initiated a series of economic reforms, including the liberalization and privatization of the telecom sector. This move ended the state monopoly on telecommunications and opened the market to private players, encouraging competition and innovation.

  • In 1995, the government conducted the first auction for telecom licenses, leading to the entry of private players like Bharti Airtel, Hutch (now Vodafone Idea), and BPL (now Loop Mobile).
  • The introduction of private players resulted in increased competition, improved services, and reduced call rates, making mobile telephony more affordable and accessible.

Internet and Data Revolution: India has had access to the internet since 1986, but only at a few universities and research centres. Only beginning August 15 of 1995, did VSNL introduce the Internet to the Indian consumers, launching the consumer internet as we know it today. The standard dial-up modem speed back then was 133kbps, which is incredibly poor by today's standards. It would take roughly 30 minutes to download a basic 1 MB image.

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Introduction of Mobile Telephony:

  • Mobile telephony was introduced in India in 1995 when the first mobile call was made between Kolkata and Delhi using the Mobile Telephone Service (MTS).
  • The government-owned telecom operator, Bharat Sanchar Nigam Limited (BSNL), and later Mahanagar Telephone Nigam Limited (MTNL), provided mobile services in their respective circles.
  • Initially, mobile services were limited, and call rates were high, making it accessible only to a small section of the population.

The revolution of Mobile Phones: India began operating cellular networks in 1995, luring private operators into the market Twenty telecom circles were established across the nation, each with two operators and a 15-year licence.The introduction of mobile telephony was a game-changer in the Indian telecom industry. The entry of private operators like Bharti Airtel, Vodafone Idea (now Vi), and later Reliance Jio Infocomm (Jio) led to a significant expansion of mobile services across the country. Mobile phones became more affordable, and tariffs dropped drastically, making them accessible to a larger population.

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The different Generations: Users in India started to get access to the internet with the introduction of cellular telephony. WAP( Wireless access protocol) allowed users to access email over the phone or plain text in the early 2000s. Full browser-based internet access was made available on mobile phones at the same time that personal digital assistants and smartphones started to become commonplace in mid 2000s. The terms 2G, 3G, and 4G refer to the successive cellular network generations. With the advent of 2G, 3G, and 4G technologies, the internet and data services gained momentum.

  • The initial mobile services were based on 2G (second generation) technology, offering voice calls and limited data services.
  • In the early 2000s, mobile operators introduced prepaid services, which became highly popular due to their affordability and flexibility.
  • With technological advancements, 3G (third generation) services were launched in 2008, providing faster data speeds and enabling services like video calling and mobile internet browsing.
  • The subsequent introduction of 4G (fourth generation) technology in 2012 brought significant improvements in data speeds, enabling high-quality video streaming, mobile gaming, and other data-intensive applications.

The proliferation of smartphones and affordable data plans brought the internet to the masses, transforming how people communicate, access information, and conduct business. India became one of the largest consumer markets for data services globally. India presently has one of the lowest international prices for mobile calling due to continuing declines in access fees.

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Digital India Initiative: Launched by the Indian government in 2015, the Digital India campaign aimed to bridge the digital divide and promote digital literacy and connectivity across the country. The initiative focused on expanding broadband connectivity, e-governance, digital infrastructure, and promoting digital services and platforms.

Entry of Reliance Jio: Reliance Jio, a subsidiary of Reliance Industries, entered the telecom market in 2016 and disrupted the industry with its aggressive pricing and data-centric offerings. Jio's entry led to intense competition, forcing other operators to lower their prices and improve their services. Jio's affordable data plans and widespread network coverage played a pivotal role in driving internet adoption in rural areas.

Today Global market is already deploying Private 5G. According to Polaris Market Research, the global Private 5G Network market is estimated to be valued at USD 924.4 million in 2020 and is expected to grow at a CAGR of 40.9% during the forecast period (2021-28) which is almost 41% of a growth rate.

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On October 1st, Prime Minister Narendra Modi announced the availability of 5G in India at the India Mobile Congress held in Delhi. It is anticipated that by the end of 2022, 75% of the population will have access to the fifth-generation cellular network, which is currently operational across the nation. India’s 5G network speed is expected to be 10 times quicker than the country’s  current 4G network speed. 

On the occasion of World Telecommunications Day, Telecom Sector experts shared their views on the various technological advancements and the sector's requirements to further evolve.

Amit Marwah, Head of Marketing and Corporate Affairs (CMO), Nokia India said, “On the occasion of World Telecom Day, Nokia once again reaffirms to creating technology that helps the world act together. For 30 years, Nokia has defined and enabled the world with technologies like 2G to 5G used to transform the way the world communicates, and at the same time helping in digitalizing societies to bridge the digital divide. Our leadership arises from a clear vision of the future of communications as outlined in our purpose and strategy. The adoption of Nokia-pioneered technology innovations will help people and planet to be more sustainable and resourceful. As communication networks become an ever-more critical infrastructure in the modern digital world, our innovations will ensure that tomorrow’s trusted networks can be built to transform the industries, cities and society to be smarter and much more efficient. We are committed to supporting a greener world which can enhance lives for the better.”

Arvind Bali, CEO, Telecom Sector Skill Council said, "As the telecom sector in India moves ahead in the 5G revolution and aims towards achieving 6G capabilities by 2030, the need for skilled technical manpower becomes even more critical. India currently faces a 2.19mn telecom demand-supply gap, which is expected to increase to 3.8 times by 2030. Through strategic partnerships with industry leaders, training institutes, and the support of the government, we aim to train over 1 lac and place more than 1.25 lac youth in cutting-edge technologies such as 5G, network virtualization, and IoT in this year. We believe, with the right reskilling and hiring techniques by targeting adjacent talent in Tier-II & III cities and University supply, India has a robust opportunity to narrow the widening demand-supply gap by 2030. The skilled workforce will be the backbone in empowering the development of our growing economy. As we move towards a connected future, TSSC remains steadfast in its mission to provide industry-relevant training, foster innovation, and create a talent pool equipped to thrive in the dynamic and growing landscape of the telecom sector in India.”

The telecom industry in India has experienced remarkable growth, driven by advancements in technology, policy reforms, and the entry of private players. With the advent of 5G, the industry is poised for further evolution, offering transformative opportunities and expanding the digital landscape in the country.

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