Priorities to drive growth in the telecom sector, local manufacturing
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Priorities to drive growth in the telecom sector, local manufacturing

The Indian telecom sector is an important driving force for the Indian economy and contributes about 6 percent to India’s GDP. It is the world’s second largest, with a subscriber base of 1,203.69 million, high data consumption and ongoing expansion to 5G services and thereafter. Nevertheless, it faces several challenges that not only slow down its growth but also hold it back from becoming the best global player.

With the Union budget 2025-26 around the corner, the telecom sector expects the government to create a more favorable environment that not only helps the sector grow and expand, but also help operators make faster investment decisions and improve service quality.

On top of the agenda for telecom operators are the high spectrum costs that increase their debt burden. This, in combination with low revenue realization due to relatively lower average revenue per user (ARPU), prevents investments in the next GEN network infrastructure. The sector expects the government to reduce spectrum costs to reduce its debt burden.

At the same time, the industry has long urged the government to rationalize taxes and abolish Universal Services Signation Fund (USOF), apart from a reduction in spectrum users and license fees, to increase investments. The industry also expects a certain activity in the reduction of license fees and removal of non-telecom revenues from the definition of gross revenue. In addition, the existing moratorium for adjusted gross revenue (AGR) fees has provided the operators’ much -needed relief with high debt levels. The industry expects the government to expand the moratorium to give the operators further relief.