"A Welcome Decision" - Union Budget 2022 and Telecom Industry

The telecom sector did not play a significant role in the Union Budget 2022, sadly. However, the announcements made at the budget did clarify a lot of things. For starters, the government has decided to lay things in the bare and asked for a 5G rollout within 2022-23. Also, the Finance Minister confirmed that the 5G spectrum auction will happen this year.

However, there is nothing that we did not know. Apart from this, the government has stressed bridging the digital divide in rural and urban India. As such, it has set a deadline of 2025 for the completion of the BharatNet project.

The industry had its opinions on the budget.

Industry Reactions on Union Budget 2022

Lt. Gen. (Retd.) Dr. SP Kochhar, DG, COAI, said, "The Union Budget of the year 2022-23 is pro-growth with emphasis on providing further impetus to the Digital India initiative. We are glad to see the focus on the enhancement of digital connectivity and the announcement for the required spectrum auction in 2022 for the rollout of 5G mobile services.

He added, "the proposal for taking progressive decisions in encouraging affordable broadband and mobile services through facilitating PLI scheme for 5G equipment, laying optical fiber cables through PPP model under BharatNet project are welcome steps".

"We look forward to continued and constructive engagement with the Government for reduction of levies on the telecom sector", Dr. Kochhar added.

Sanjay Bakaya, Country Head, India, and Regional Vice-President, Mavenir, said, "The Union Budget 2022 is very encouraging, forward-looking and growth-oriented. The economy is back on the growth trajectory and India is like to be the fastest-growing economy in FY 22-23. We can see a lot of push in the budget towards Digital India, MII and transforming rural India by laying optical fiber cables for high-speed broadband connectivity".

Ankit Agarwal, MD, STL, said, "we believe that this budget will prove to be a Shot in the Arm for accelerating India’s Digital, Domestic, and Defence ambitions. On the one side, it addresses digital connectivity for all through optical fiber and digital services in 100% of the villages by 2025. On the other side, it sets the foundation for India’s 5G readiness through spectrum auctions, R&D impetus, USOF allocation along with a boost for domestic manufacturing through a timely ‘Design-led manufacturing’ scheme".

Nitin Bansal, MD, India & Head-Networks - Southeast Asia, Oceania, and India at Ericsson, said, "from a telecom sector perspective, FM’s announcement around the 5G spectrum auction, 100% fiberisation with PPP model will provide the required impetus to build upon ubiquitous and reliable internet connectivity. Thereby, bridging the digital divide for a conducive and inclusive development of the nation in keeping with the ‘Digital India’ initiative".

Bansal further added, "further, design-led initiatives for 5G under the PLI scheme and 5% of USOF for R&D purposes will strengthen the ‘Make in India’ initiative, and contribute to making India a global manufacturing hub".

Vishwadeep Bajaj, CEO, ValueFirst, commented, "Union Finance Minister Nirmala Sitharaman announced earlier about initiating the 5G spectrum in India next year. This development is incredible, especially for the banking sector. The spectrum will provide faster and simpler payment options, which will make mobile and digital payments even more appealing to the masses and merchants alike, further boosting usage".

Telecom Sector at #Budget2022

The government has confirmed all the speculation regarding the 5G rollout, and we now have a clear deadline. In all certainty, a 5G rollout during this year depends solely on the time of the auction. Along with this, under the PLI scheme for telecom infra, the government has announced a scheme to develop 5G equipment.

The current budget also moved its focus towards enhancing rural connectivity and bridging the digital divide. As such, the government will complete optical fiber laying, connecting all villages of India, by 2025, under the BharatNet scheme

“To enable affordable broadband and mobile service proliferation in rural areas, 5% of the USOF will be allocated. This will provide and promote R&D for commercialization of technology”, the Finance Minister added.

The Finance Minister envisioned an India where there remains no digital divide. “Our vision is that all rural residents have access to e-services,” she said.