MarketTelecommunications in India
Company Profile

Telecommunications in India

India's telecommunication network is the second largest in the world by number of telephone users with over 1.19 billion subscribers as of September 2024. It has one of the lowest call tariffs in the world enabled by multiple large-scale telecom operators and the ensuant hyper-competition between them. India has the world's second largest Internet user-base with over 949.21 million broadband internet subscribers as of September 2024.

History
The beginning Prof. S. P. Chakravarti is known as the father of electronics and telecommunications engineering in India. He started electronics and telecommunications education, training and research in India. Telecommunications in India began with the introduction of the Telegraphy. The Indian postal and telecom sectors are one of the world's oldest. In 1850, the first experimental electric telegraph line was started between Kolkata and Diamond Harbour. In 1851, it was opened for the use of the East India Company. The Posts and Telegraphs department occupied a small corner of the Public Works Department at that time. The construction of of telegraph lines was started in November 1853. These connected Kolkata (then Calcutta) and Peshawar in the north; Agra, Mumbai (then Bombay) through Sindwa Ghats, and Chennai (then Madras) in the south; Ooty and Bangalore. William O'Shaughnessy, who pioneered the Telegraphy and telephone in India, belonged to the Public Works Department, and worked towards the development of telecom throughout this period. A separate department was opened in 1854 when telegraph facilities were opened to the public. In 1880, two telephone companies, namely the Oriental Telephone Company Ltd. and the Anglo-Indian Telephone Company Ltd. approached the Government of India to establish a telephone exchange in India. Permission was refused on the grounds that the establishment of telephone networking was a government monopoly and that the government itself should undertake the work. In 1881, the government later reversed its earlier decision and a licence was granted to the Oriental Telephone Company Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai and Ahmedabad and the first formal telephone service was established in the country. On 28 January 1882, Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange in Calcutta named the "Central Exchange" had a total of 93 subscribers in its early stage. Later that year, Bombay also witnessed the opening of a telephone exchange. Further developments and milestones • 1901 – First wireless telegraph station established between Sagar Island and Sandhead. • Pre-1902 – Cable telegraph. • 1907 – First Central Battery of telephones introduced in Kanpur. • 1913–1914 – First Automatic Exchange installed in Shimla. • 1927 – Radio-telegraph system between the UK and India, with Imperial Wireless Chain beam stations at Khadki and Daund. Inaugurated by Lord Irwin on 23 July by exchanging greetings with King George V. • 1933 – Radiotelephone system inaugurated between the UK and India. • 1947 - First Electronics and Telecommunications Engineering department started in India at the Government Engineering College, Jabalpur. • 1951 - First TV transmitter of India was installed at the Government Engineering College, Jabalpur, on 24 October. • 1975 – First PCM system commissioned between Mumbai City and Andheri telephone exchanges. • 1976 – First digital microwave junction. • 1979 – First optical fibre system for local junction commissioned at Pune. • 1980 – First satellite earth station for domestic communications established at Sikandarabad, U.P. • 1983 – First analogue Stored Programme Control exchange for trunk lines commissioned at Mumbai. • 1984 – C-DOT established for indigenous development and production of digital exchanges. • 1995 – First mobile telephone service started on non-commercial basis on 15 August 1995 in Delhi. • 1995 – Internet Introduced in India starting with Laxmi Nagar, Delhi 15 August 1995 • 2020 – The PM-WANI framework envisages provision of Broadband through Public Wi-Fi Hotspot providers. Development of Broadcasting: Radio broadcasting was initiated in 1927 but became state responsibility only in 1930. In 1937 it was given the name All India Radio and since 1957 it has been called Akashvani. Limited duration of television programming began in 1959, and complete broadcasting followed in 1965. The Ministry of Information and Broadcasting owned and maintained the audio-visual apparatus—including the television channel Doordarshan—in the country prior to the economic reforms of 1991. In 1997, an autonomous body was established in the name of Prasar Bharti to take care of the public service broadcasting under the Prasar Bharti Act. All India Radio and Doordarshan, which earlier were working as media units under the Ministry of I&B became constituents of the body. Sam Pitroda had a significant role as a consultant and adviser in the development of telecommunication in India. In 1985, the Department of Telecom (DoT) was separated from Indian Post & Telecommunication Department. DoT was responsible for telecom services in entire country until 1986 when Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were carved out of DoT to run the telecom services of metro cities (Delhi and Mumbai) and international long-distance operations respectively. Liberalisation in the basic telecom sector was also envisaged in this policy. They were also successful in establishing joint ventures between state owned telecom companies and international players. Foreign firms were eligible to 49% of the total stake. The multi-nationals were just involved in technology transfer, and not policy making. During this period, the World Bank and ITU had advised the Indian Government to liberalise long-distance services to release the monopoly of the state-owned DoT and VSNL and to enable competition in the long-distance carrier business which would help reduce tariff's and better the economy of the country. The Rao run government instead liberalised the local services, taking the opposite political parties into confidence and assuring foreign involvement in the long-distance business after 5 years. The country was divided into 20 telecommunication circles for basic telephony and 18 circles for mobile services. These circles were divided into category A, B and C depending on the value of the revenue in each circle. The government threw open the bids to one private company per circle along with government-owned DoT per circle. For cellular service two service providers were allowed per circle and a 15 years licence was given to each provider. During all these improvements, the government did face oppositions from ITI, DoT, MTNL, VSNL and other labour unions, but they managed to keep away from all the hurdles. The primary objective of TDSAT's establishment was to release TRAI from adjudicatory and dispute settlement functions in order to strengthen the regulatory framework. Any dispute involving parties like licensor, licensee, service provider and consumers are resolved by TDSAT. Moreover, any direction, order or decision of TRAI can be challenged by appealing in TDSAT. The government corporatised the operations wing of DoT on 1 October 2000 and named it as Department of Telecommunication Services (DTS) which was later named as Bharat Sanchar Nigam Limited (BSNL). The proposal of raising the stake of foreign investors from 49% to 74% was rejected by the opposite political parties and leftist thinkers. Domestic business groups wanted the government to privatise VSNL. Finally in April 2002, the government decided to cut its stake of 53% to 26% in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in VSNL. Many private operators, such as Reliance Communications, Jio, Tata Indicom, Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the high potential Indian telecom market. In the initial 5–6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 million. However, after a number of proactive initiatives taken by regulators and licensors, the total number of mobile subscribers has increased rapidly to over 929 million subscribers as of May 2012. In March 2008, the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year. As the unbranded Chinese cell phones which do not have International Mobile Equipment Identity (IMEI) numbers pose a serious security risk to the country, Mobile network operators therefore suspended the usage of around 30 million mobile phones (about 8% of all mobiles in the country) by 30 April 2009. Phones without valid IMEI cannot be connected to cellular operators. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in India have also become the lowest in the world. A new mobile connection can be activated with a monthly commitment of US$0.15 only. Decentralisation has been the new push by the government through PM WANI scheme launched in Dec 2020 to push Internet penetration above the current 50% threshold into smaller towns and villages. This opens up opportunities for multiple small and medium scale local business models as well as decentralized solutions using Blockchain. Licence cancellation On 2 February 2012 the Supreme Court ruled on petitions filed by Subramanian Swamy and the Centre for Public Interest Litigation (CPIL) represented by Prashant Bhushan, challenging the 2008 allotment of 2G licenses, and described the allocation of 2G spectrum as "unconstitutional and arbitrary". The bench of GS Singhvi and Asok Kumar Ganguly imposed a fine of on Unitech Wireless, Swan Telecom and Tata Teleservices and a fine on Loop Telecom, S Tel, Allianz Infratech and Sistema Shyam Tele Services. According to the ruling the then granted licences would remain in place for four months, after which time the government would reissue the licences. Consolidation Post starting of the commercial operation of Reliance Jio in September 2016, the telecom market saw a huge change in terms of falling tariff rates and reduction of data charges, which changed the economics for some of the telecom players. This resulted in exit of many smaller players from the market. Players like Videocon and Systema sold their spectrum under spectrum trading agreements to Airtel and RCOM respectively in Q4 2016. On 23 February 2017, Telenor India announced that Bharti Airtel will take over all its business and assets in India and deal will be completed in 12 months timeframe. On 14 May 2018, Department of Telecom approved the merger of Telenor India with Bharti Airtel paving the way for final commercial closing of the merger between the two companies. Telenor India has been acquired by Airtel almost without any cost. On 12 October 2017, Bharti Airtel announced that it would acquire the consumer mobile businesses of Tata Teleservices Ltd (TTSL) and Tata Teleservices Maharastra Ltd (TTML) in a debt-free cash-free deal. The deal was essentially free for Airtel which incurred TTSL's unpaid spectrum payment liability. TTSL will continue to operate its enterprise, fixed line and broadband businesses and its stake in tower company Viom Networks. The consumer mobile businesses of Tata Docomo, Tata Teleservices (TTSL) and Tata Teleservices Maharashtra Limited (TTML) have been merged into Bharti Airtel from 1 July 2019 Reliance Communications had to shut down its 2G and 3G services including all voice services and only offer 4G data services from 29 December 2017, as a result of debt and a failed merger with Aircel. Surprisingly, the shut down was shortly after completion of acquisition of MTS India on 31 October 2017. In February 2019, the company filed for bankruptcy as it was unable to sell assets to repay its debt. It has an estimated debt of ₹ 57,383 crore against assets worth ₹18,000 crore. Aircel shut down its operations in unprofitable circles including, Gujarat, Maharashtra, Haryana, Himachal Pradesh, Madhya Pradesh and Uttar Pradesh (West) from 30 January 2018. Aircel along with its units - Aircel Cellular and Dishnet Wireless - on 1 March 2018, filed for bankruptcy in the National Companies Law Tribunal (NCLT) in Mumbai due to huge competition and high levels of debt. Vodafone and Idea Cellular completed their merger on 31 August 2018, and the merged entity is renamed to Vi. The merger created the largest telecom company in India by subscribers and by revenue, == Wireless operators ==
Wireless operators
As of 31.03.2026 there were around 1265.73 million wireless subscribers in India, according to Telecom Regulatory Authority of India (TRAI). Mobile operators Over the past decade, the Indian cellular services market has seen rapid consolidation. The launch of Jio Platforms in 2016 changed the market dynamics substantially as the company offered free data and voice services during its first year of operations, prompting a fierce price war in the market. Jio managed to garner over 8 crore (80 million) subscribers. In 2018, Airtel India lost its market leadership position for the first time in 15 years as a result of the completion of a merger between then telecom giants Vodafone India and Idea Cellular. Active operators Defunct operators As of 31 March 2026, 17 mobile operators have ceased operations in India. The longest operating defunct operator is MTNL which was also the first mobile operator in the country. ==Wireline operators==
Wireline operators
Fixed-line operators As of 31.03.2026, there are 48.25 million wireline subscribers in India according to Telecom Regulatory Authority of India (TRAI). The number of subscribers of all 10 companies are tabulated as follows: == Internet service providers (ISPs) ==
Internet service providers (ISPs)
Internet service providers (ISPs) offering broadband (wired + wireless) services. The total number of broadband subscribers stood at 1065.88 million as of 31.03.2026. Total Wireless broadband subscribers stood at 958.54 million and wireline broadband subscribers stood at 45.11 million. As of 31.03.2026, the top five wireless broadband service providers which have market share of 99.99% is as follows: The following table shows the top five wired broadband service providers in India by total subscriber base as of 31.03.2026 which hold market share of 71.68%. Other notable ISPs For enterprise/wholesale only ==Television broadcasting==
Television broadcasting
system. Television broadcasting began in India in 1959 by Doordarshan, a state-run medium of communication, and had slow expansion for more than two decades. The policy reforms of the government in the 1990s attracted private initiatives in this sector, and since then, satellite television has increasingly shaped popular culture and Indian society. However, still, only the government-owned Doordarshan has the licence for terrestrial television broadcast. Private companies reach the public using satellite channels; both cable television as well as DTH has obtained a wide subscriber base in India. A total of approximately 918 private satellite TV channels have been permitted by the Ministry of Information and Broadcasting (MIB) for uplinking only/downlinking only/both uplinking & downlinking. As per the reporting done by broadcasters in pursuance of the Tariff Order dated 3rd March 2017, as amended, out of 908 permitted satellite TV channels which are available for downlinking in India, there are 333 satellite pay TV channels as on 31st March, 2025. Out of 333 pay channels, 232 are SD satellite pay TV channels and 101 are HD satellite pay TV channels. ==Radio==
Radio
FM radio stations in India. Apart from the radio channels operated by All India Radio – the public broadcaster, as per the data reported by FM Radio operators to TRAI, as on 31st December 2024, there were 388 operational private FM Radio channels in 113 cities operated by 36 private FM Radio operators. During the quarter ending 31st March 2025, six channels operated by three private FM radio operators, namely, (i) Digital Radio (Delhi) Broadcasting Ltd (3 channels), (ii) Digital Radio (Mumbai) Broadcasting Ltd (2 channels), and (iii) Digital Radio (Kolkata) Broadcasting Ltd (1 channel), were merged with South Asia FM Ltd. Now, as of 31st March 2025, there are 388 operational private FM radio channels across 113 cities, operated by 33 private FM radio operators. ==Next-generation networks (NGN)==
Next-generation networks (NGN)
Historically, the role of telecommunication has evolved from that of plain information exchange to a multi-service field, with Value Added Services (VAS) integrated with various discrete networks like PSTN, PLMN, Internet Backbone etc. However, with decreasing average revenue per user and increasing demand for VAS has become a compelling reason for the service providers to think of the convergence of these parallel networks into a single core network with service layers separated from network layer. Next-generation networking is such a convergence concept which according to ITU-T is: Access network: The user can connect to the IP-core of NGN in various ways, most of which use the standard Internet Protocol (IP). User terminals such as mobile phones, personal digital assistants (PDAs) and computers can register directly on NGN-core, even when they are roaming in another network or country. The only requirement is that they can use IP and Session Initiation Protocol (SIP). Fixed access (e.g., digital subscriber line (DSL), cable modems, Ethernet), mobile access (e.g. UMTS, CDMA2000, GSM, GPRS) and wireless access (e.g.WLAN, WiMAX) are all supported. Other phone systems like plain old telephone service and non-compatible VoIP systems, are supported through gateways. With the deployment of the NGN, users may subscribe to many simultaneous access-providers providing telephony, internet or entertainment services. This may provide end-users with virtually unlimited options to choose between service providers for these services in NGN environment. The hyper-competition in the telecom market, which was effectively caused by the introduction of Universal Access Service (UAS) licence in 2003 became much tougher after 3G and 4G competitive auction. About of optical fibre has been laid in India by the major operators, including in the financially nonviable rural areas and the process continues. Keeping in mind the viability of providing services in rural areas, the government of India also took a proactive role to promote the NGN implementation in the country; an expert committee called NGN eCO was constituted in order to deliberate on the licensing, interconnection and quality of service (QoS) issues related to NGN and it submitted its report on 24 August 2007. Telecom operators found the NGN model advantageous, but huge investment requirements have prompted them to adopt a multi-phase migration and they have already started the migration process to NGN with the implementation of IP-based core-network. ==Regulatory environment==
Regulatory environment
LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarises stakeholders' perception on certain TRE dimensions, provides insight into how conducive the environment is for further development and progress. The most recent survey was conducted in July 2008 in eight Asian countries, including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The tool measured seven dimensions: i) market entry; ii) access to scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive practices; and vi) universal services; vii) quality of service, for the fixed, mobile and broadband sectors. The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for the mobile sector followed by fixed and then broadband. Other than for Access to ScarceResources the fixed sector lags behind the mobile sector. The fixed and mobile sectors have the highest scores for Tariff Regulation. Market entry also scores well for the mobile sector as competition is well entrenched with most of the circles with 4–5 mobile service providers. The broadband sector has the lowest score in the aggregate. The low penetration of broadband of mere 3.87 against the policy objective of 9 million at the end of 2007 clearly indicates that the regulatory environment is not very conducive. In 2013 the home ministry stated that legislation must ensure that law enforcement agencies are empowered to intercept communications. ==S-band spectrum scam==
S-band spectrum scam
In India, electromagnetic spectrum, being a scarce resource for wireless communication, is auctioned by the Government of India to telecom companies for use. As an example of its value, in 2010, 20 Hertz of 3G spectrum was auctioned for . This part of the spectrum is allocated for terrestrial communication (cell phones). However, in January 2005, Antrix Corporation (commercial arm of ISRO) signed an agreement with Devas Multimedia (a private company formed by former ISRO employees and venture capitalists from USA) for lease of S band transponders (amounting to 70 MHz of spectrum) on two ISRO satellites (GSAT 6 and GSAT 6A) for a price of , to be paid over a period of 12 years. The spectrum used in these satellites (2500 MHz and above) is allocated by the International Telecommunication Union specifically for satellite-based communication in India. Hypothetically, if the spectrum allocation is changed for utilisation for terrestrial transmission and if this 70 MHz of spectrum were sold at the 2010 auction price of the 3G spectrum, its value would have been over . This was a hypothetical situation. However, the Comptroller and Auditor General of India considered this hypothetical situation and estimated the difference between the prices as a loss to the Indian Government. There were lapses on implementing Government of India procedures. Antrix/ISRO had allocated the capacity of the above two satellites to Devas Multimedia on an exclusive basis, while rules said it should always be non-exclusive. The Union Council of Ministers was misinformed in November 2005 that several service providers were interested in using satellite capacity, while the Devas deal was already signed. Also, the Space Commission was kept in the dark while taking approval for the second satellite (its cost was diluted so that Cabinet approval was not needed). ISRO committed to spending of public money on building, launching, and operating two satellites that were leased out for Devas. In late 2009, some ISRO insiders exposed information about the Devas-Antrix deal, and the ensuing investigations resulted in the deal being annulled. G. Madhavan Nair (ISRO Chairperson when the agreement was signed) was barred from holding any post under the Department of Space. Some former scientists were found guilty of "acts of commission" or "acts of omission". Devas and Deutsche Telekom demanded US$2 billion and US$1 billion, respectively, in damages. The Central Bureau of Investigation concluded investigations into the Antrix-Devas scam and registered a case against the accused in the Antrix-Devas deal under Section 120-B, besides Section 420 of IPC and Section 13(2) read with 13(1)(d) of PC Act, 1988 on 18 March 2015 against the then executive director of Antrix Corporation, two officials of USA-based company, Bangalore based private multimedia company, and other unknown officials of Antrix Corporation or Department of Space. Devas Multimedia started arbitration proceedings against Antrix in June 2011. In September 2015, the International Court of Arbitration of the International Chamber of Commerce ruled in favour of Devas, and directed Antrix to pay US$672 million (Rs 44.35 billion) in damages to Devas. Antrix opposed the Devas plea for tribunal award in the Delhi High Court. == Revenue and growth ==
Revenue and growth
The adjusted gross revenue in the telecom service sector was in 2017 as against in 2016, registering a negative growth of 18.87%. The major contributions to this revenue are as follows (in INR crores): ==International==
International
• Nine satellite earth stations – 8 Intelsat (Indian Ocean) and 1 Inmarsat (Indian Ocean region). • Nine gateway exchanges operating from Mumbai, New Delhi, Kolkata, Chennai, Jalandhar, Kanpur, Gandhinagar, Hyderabad and Thiruvananthapuram. Submarine cables • LOCOM linking Chennai to Penang, Malaysia • India-UAE cable linking Mumbai to Fujairah, UAE. • SEA-ME-WE 2 (South East Asia-Middle East-Western Europe 2) • SEA-ME-WE 3 (South East Asia-Middle East-Western Europe 3) – Landing sites at Kochi and Mumbai. Capacity of 960 Gbit/s. • SEA-ME-WE 4 (South East Asia-Middle East-Western Europe 4) – Landing sites at Mumbai and Chennai. Capacity of 1.28 Tbit/s. • Fibre-optic Link Around the Globe (FLAG-FEA) with a landing site at Mumbai (2000). Initial design capacity 10 Gbit/s, upgraded in 2002 to 80 Gbit/s, upgraded to over 1 Tbit/s (2005). • TIISCS (Tata Indicom India-Singapore Cable System), also known as TIC (Tata Indicom Cable), Chennai to Singapore. Capacity of 5.12 Tbit/s. • i2i – Chennai to Singapore. The capacity of 8.4 Tbit/s. • SEACOM From Mumbai to the Mediterranean, via South Africa. It joins with SEA-ME-WE 4 off the west coast of Spain to carry traffic onward to London (2009). Capacity of 1.28 Tbit/s. • I-ME-WE (India-Middle East-Western Europe) with two landing sites at Mumbai (2009). Capacity of 3.84 Tbit/s. • EIG (Europe-India Gateway), landing at Mumbai(2011). Capacity of 3.84 Tbit/s. • TGN-Eurasia Landing at Mumbai (2012), Capacity of 1.28 Tbit/s • TGN-Gulf Landing at Mumbai (2012), Capacity Unknown. • MENA (Middle East North Africa)(Announced).(due ?), Capacity of 5.76 Tbit/s. ==See also==
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