DoT Released Draft National Telecom Policy (NTP), 2025

Syllabus: GS3/Infrastructure

Context

• The Department of Telecommunications (DoT) has circulated Draft National Telecom Policy (NTP), 2025, for public consultation.
  • It outlines India’s strategic priorities for the telecom sector for the period of 2025 to 2030.

Key Features of Draft NTP 2025

• Universal and Meaningful Connectivity:
  • Achieve 100% 4G coverage and 90% 5G population coverage by 2030.
  • Increase fiberization of telecom towers from 46% to 80% for better speed and reliability.
  • Deploy 1 million public Wi-Fi hotspots and extend fixed-line broadband to 100 million households.
  • Promote satellite-based internet in remote areas.
• Domestic Equipment Manufacturing:
  • Incentivize use of locally made telecom equipment to replace 50% of imports, supporting companies like Tejas Networks and HFCL.
• R&D and Innovation:
  • Double telecom R&D expenditure.
  • Support 500 tech startups and aim to capture 10% of global 6G-related IPs.
  • Promote blended finance and fund-of-fund models for innovation.
• Employment and Skill Development:
  • Create 1 million new jobs in telecom.
  • Upskill 1 million workers in emerging technologies.
• Investment and Export Promotion:
  • Target ₹1 trillion annual investments in telecom.
  • Double telecom products and services exports.
• Network Security:
  • Conduct equipment audits to exclude non-trusted hardware.
  • Develop quantum-secure communication systems and strengthen cybersecurity.
• Green Telecom Initiatives:
  • Reduce telecom sector carbon footprint by 30%.
  • Encourage renewable energy use and sustainable deployment.
• Ease of Doing Business: Simplify norms to improve telecom access and foster digital inclusion.

Significance of the Policy

• NTP 2025 aims to boost telecom sector investment to ₹1 lakh crore annually, doubling telecom product exports and fostering innovation in emerging technologies like 5G, 6G, artificial intelligence (AI), Internet of Things (IoT), and quantum communications.
• The policy targets 100% 4G population coverage and 90% 5G coverage by 2030, alongside expanding fiberization of telecom towers and deploying one million public Wi-Fi hotspots.
• NTP 2025 proposes simplification of regulations, cost reductions, and measures to improve business environment and digital inclusion, fostering a robust ecosystem for telecom players and consumers alike.

Telecommunication Sector in India

• India is the world’s second-largest telecommunications market with a total telephone subscriber base of 1.20 billion.
• India ranks as the world’s second-largest market in terms of total internet users.
• The Telecom sector is the 4th largest sector in terms of FDI inflows, contributing 6% of total FDI inflow. 

Challenges Faced by the Sector

• Regulatory Framework: Changes in regulations, spectrum pricing, licensing requirements, and government policies impact the operations and investments of telecom companies.
• Infrastructure Development: Despite significant progress in recent years, there are still gaps in telecommunications infrastructure, particularly in rural and remote areas. 
• Competition and Pricing: Intense competition among telecom operators has led to price wars and margin pressures.
  • While this benefits consumers with lower tariffs, it puts strain on the financial health of telecom companies.
• Quality of Service: Maintaining consistent quality of service, especially in densely populated urban areas, is a challenge for telecom operators. 
• Cybersecurity: With the increasing digitization of services, cybersecurity has become a critical concern for telecom companies. 
• Technological Advancements: Keeping pace with rapid technological advancements, such as 5G deployment, requires substantial investments in infrastructure and upgrades.
  • Telecom companies need to balance these investments with revenue generation and profitability.

Way Ahead

• Operators are expected to expand 5G coverage and invest in infrastructure, which will drive demand for new devices and services.
• Increased smartphone penetration and data consumption are boosting demand for digital platforms and services.
• The telecom sector is crucial for the digital economy, and as its services expand, cybersecurity becomes even more critical.
• Addressing evolving threats, securing new technologies, and meeting regulatory requirements are critical for the growth of the sector.

Source: TH