The Indian telecom industry is at the cusp of a major transformation as demand for data increases exponentially in a ‘connected’ economy.

Sadly though, the excitement around this opportunity is at odds with the broken state of the industry today; over ₹2,50,000 crore of debt, taxes and levies amounting up to 30 per cent of operating revenues, high cost of spectrum, and mounting litigation. The tough situation clearly calls for a bold and decisive action through a stable and transparent framework.

While much of the spectrum today is with the defence forces, what is available for the industry is fragmented across too many players. The average holding of Indian companies is 13 Mhz compared to a whopping 100 Mhz in Western countries.

Inadequate holdings not only lead to inefficient use of spectrum, but poor customer experience because of congested networks. Allowing spectrum trading and sharing through a transparent framework will ensure efficient use of this scarce resource.

At ₹2270 crore per Mhz, the cost of spectrum in India is amongst the highest in the world.

This is because of the artificial scarcity created by putting only very limited amount of spectrum up for auction. The Government must find a way to free up more spectrum from other agencies and put all of it up for auction next year.

Equally important will be lowering the revenue share-linked spectrum usage charges that were put in place before the new auction-led pricing regime. Such a move will allow the industry to invest precious capital in rolling out networks.

There is an urgent need to put in place a national framework for enabling roll out of fibre on the ground and eliminate the mind boggling complexity and liasioning with scores of municipal corporations that set their own rules.

This will not only help reduce cost but help speed up roll out as well.

Enormous penalties are being levied today on the industry because of minor process related errors with little consideration for the materiality of the offense. This has led to endless litigation.

This can be dramatically simplified to promote an environment of trust and collaboration between the industry and the government.

As the new government begins its work, there is an air of excitement and hope. I believe it’s just a matter of time before we see concrete action from the Government.

The industry, on its part, is ready to walk the extra mile to make this new broadband revolution a reality.

(The writer is MD and CEO (India & South Asia), Bharti Airtel)

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