There is immense potential for expansion of telecom services in India: COAI

New Delhi, March 06, 2025.

According to the Cellular Operators Association of India (COAI), the Indian telecom industry is experiencing tremendous growth domestically and internationally and has immense potential for expansion. COAI Director General Lieutenant General Dr. SP Kochar said that with about 1,187 million subscribers, urban tele-density has reached 131.01 percent, while the rural sector lags behind at 58.31 percent. According to Kochar, “Despite this disparity, there is immense potential for expansion in both regions. The roll-out of 5G is progressing rapidly, facilitated by artificial intelligence (AI), indigenous data sets and establishment of local data centers.” The Indian government has implemented financial measures such as goods and services tax refunds and removal of bank guarantees. Additionally, research is underway to develop cost-effective 5G handsets priced between Rs 6,000 and Rs 7,000. “Furthermore, satellite technology is being introduced to provide connectivity in remote areas where terrestrial networks are not possible,” Kochhar said in a statement.

The Indian government has also prioritised domestic telecom manufacturing to reduce dependence on imports and establish the country as a global hub. According to COAI, policies such as the production-linked incentive scheme have attracted significant investments, boosting self-reliance and export potential. India has emerged as a leader in data consumption despite being one of the most cost-competitive telecom markets globally. The telecom sector has also adopted a two-pronged approach to reduce cyber fraud and spam. An AI-driven warning system has been set up to alert customers about potential scams, which has shown significant success in preventing fraudulent calls. With a thriving domestic market and rising global prominence, India’s telecom industry is poised for unprecedented growth, according to the COAI director general. Last month, state-owned telecom company Bharat Sanchar Nigam Limited (BSNL) reported a profit of Rs 262 crore in the third quarter of the current fiscal, marking its first return to profit since 2007. This milestone reflects the company’s focus on innovation, aggressive network expansion, cost optimization and customer-centric service improvements. Government support through strategic revival initiatives including spectrum allocation and capital investments have played a key role in strengthening its operations.

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