India’s data surge needs a smarter telecom spectrum strategy

India’s digital journey is nothing short of remarkable. With over 365 million 5G subscribers and growing, the telcos have helped the nation emerge as a global leader in mobile connectivity. However, to keep pace with the swelling demand and rapid technological evolution, the telecom sector must optimise its spectrum strategy, the invisible backbone of all wireless communications.

Let us delve into the critical components of this strategy: spectrum refarming, sharing frameworks, and future spectrum auctions, illustrating how these pillars are vital to building a Digital India that is competitive, inclusive, and future-ready.

The Spectrum Imperative: A Growing Demand

Spectrum is the lifeline for the telcos and, by extension, India’s digital economy. As more Indians come online and emerging technologies, such as the Internet of Things (IoT), artificial intelligence or AI-driven networks, and autonomous systems, grow, wireless data consumption is soaring exponentially. Meeting this surging network load requires more spectrum, particularly mid-band frequencies that balance geographic coverage and network capacity.

Currently, India holds approximately 900 MHz of IMT spectrum (per Circle) for mobile services. However, to deliver world-class 5G performance and fulfil international IMT-2020 standards requirements, telcos estimate that India needs to more than double the current amount, or an additional 2 GHz of mid-band spectrum, by 2030. The 6 GHz band could be the only viable solution for addressing this shortcoming.

Refarming: Unlocking Idle National Assets

The Government of India took a landmark step this year by approving the refarming of 687 MHz of spectrum previously held by government agencies, including the defence forces and ISRO. This initiative, strongly backed by the telcos through sustained advocacy, raises India’s total IMT spectrum from 900 MHz to approximately 1,587 MHz, a game-changer in addressing network capacity constraints.

Refarming is not just spectrum reallocation; it represents a strategic unlocking of underutilised national assets. Many government departments hold spectrum that can simultaneously fulfil their operational mandate while enabling commercial use for 5G and upcoming 6G services.

This phased refarming approach ensures that critical government functions continue uninterrupted, while significantly boosting spectrum availability for the telcos. Ultimately, it positions India to capture the vast socioeconomic opportunities that 5G promises, including an estimated USD 41 billion boost to GDP by 2030, primarily driven by the deployment of mid-band spectrum.

Future Auctions: Pricing to Stimulate Growth

Past spectrum auctions in India have been marred by high reserve prices, leaving significant portions of spectrum unsold and constraining network investments. Unsold spectrum translates directly into slower network expansion and limits consumers’ access to affordable, high-quality mobile services.

The telcos firmly believe that auction reserve prices must be realistic and reflective of India’s market and financial realities. Aligning reserve prices with roughly 50% of the Telecom Regulatory Authority of India’s valuations, down from the prevailing 70%, is likely to promote competitive bidding, attract new entrants, and encourage more aggressive network rollouts.

The acquisition of new bands to support 5G and enhanced 4G networks has led to a gradual increase in the spectrum cost burden from 2015 to 2023. This currently stands at 26% of the operators’ recurring revenues and is among the highest in the world.

Rationalised spectrum pricing has been a catalyst for the recent acceleration of 5G rollouts and improved network quality in India. However, the burden of spectrum cost will continue to influence India’s progress towards its digital goals for years to come.

The 6 GHz Band: The Mid-Band Cornerstone

Among all spectrum bands, the 6 GHz range stands out as the linchpin for India’s mid-band strategy. Given that a large portion of existing 5 GHz unlicensed Wi-Fi spectrum remains underutilised, delicensing the remaining 6 GHz band for Wi-Fi would be a lost opportunity.

Licensed deployment of the full 6 GHz band provides a superior balance of coverage and capacity, enabling robust mobile broadband delivery in both urban and rural areas of India. Occupying this mid-band spectrum is critical not just for meeting immediate 5G needs but for sustaining network excellence through 6G and beyond.

Private 5G: Licensed Operators Should Lead

The debate over direct spectrum allocation to enterprises for private 5G networks continues, but telcos firmly advocate for a model in which licensed service providers manage these networks.

Telcos have invested trillions in licensed spectrum and infrastructure, bringing expertise, economies of scale, and regulatory oversight that are crucial to both security and performance. Enterprises can benefit from customised connectivity solutions via network slicing. Direct spectrum allocation, on the other hand, risks National Security, Government revenues, and regulatory equity, potentially skewing competitive fairness and complicating network interference management.

Policy Choices Shaping Wireless Access

As India looks to the immediate future, the priorities for telecom operators are clear: ensuring that the full 1200 MHz in the 6 GHz band is allocated for IMT and refining auction methodologies with realistic pricing that promotes efficient spectrum use without compromising competition.

Over the medium and long term, the sector must prepare for the demands of 6G spectrum, developing strategies for new frequency bands and evolving network architectures that will define the next decade of wireless innovation.

India’s telecom sector stands ready to lead the next digital revolution. Building on a strategy that simultaneously unlocks idle spectrum, along with market-friendly auction frameworks, is imperative.

The spectrum policy choices made today will determine the quality, affordability, and inclusivity of connectivity for the country’s 1.4 billion-plus citizens tomorrow. Through thoughtful and collaborative policymaking, India can emerge as a global leader in advanced wireless technologies, transforming societies, fuelling economies, and expanding opportunities for all.

The author is a decorated military veteran who retired as the Signal Officer-in-Chief, the head of the Indian Army’s ICT division. He was also the first CEO of the Telecom Sector Skill Council and is the Director General of the Cellular Operators Association of India (COAI).

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