Part 7: Technology, Media and Telecommunications Review

This is Part 7 of a 7 part series on Technology, Media and Telecommunications Review.

It would not be wrong to say that the telecom sector in India has witnessed instability as many telecom companies went bankrupt as Reliance Jio entered the market.

The AGR dues and changing competition dynamics were also factors in this.

However, the situation has now ameliorated, even when there are three market players in the sector.

The government is working hard to prepare a better relief package for the industry as the companies are still under immense pressure to keep their stronghold in the sector.

The government has allowed 100 per cent FDI under automatic route, infrastructure sharing and built-in right of way for easy access and faster clearance of applications, while also planning to bring a uniform charge for entry fees under the Unified License.

Another example is the production-linked incentive (PLI) with an aim to push local players to produce more within the country.

These efforts are likely to boom the revenue of the operators, and ultimately for the sector.

With the 5G auction, there is also a scope for wireless connectivity going upstream for both enterprise and retail. 5G will also have a positive impact on the revenue of the sector with a compound annual growth rate (CAGR) expected to be at 10 per cent between 2023 and 2025 and the smartphone industry will lead the growth at a CAGR of 15.9 per cent.

While the government is routing for the Digital India campaign, the government is also putting continuous efforts into helping the companies get up to pace again.

One such example is the government’s offer to purchase major shares of Vodafone Idea, and the company’s agreement to it.

The Indian gaming industry is another important area in the TMT industry which must also be considered in the context of the development of the sector.

The pandemic has led to a rise in the number of online gaming players.

The online gaming industry across India was valued at around 79 billion rupees in the year 2021, marking a leap from about 65 billion rupees in the previous year.