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India's Telecom Duopoly a Market Outcome, Not Policy Design: Minister Pemmasani

Wednesday, 02 July 2025, 11:52 IST
Separator
  • Minister Pemmasani clarified that India’s telecom duopoly is due to capital-intensive market realities, not government policy.
  • Government is reviving BSNL with indigenous tech and supporting Vodafone Idea while expanding BharatNet to rural areas with $18 billion investment.
  • India aims to launch 6G alongside global powers, contributing 10% to global standards and filing over 200 patents.

India’s current telecom duopoly is a product of market dynamics and capital intensity not government design said Chandra Sekhar Pemmasani, Minister of State for Communications. Speaking at the India Mobile Congress (IMC) 2025 roadshow in Bengaluru, Pemmasani clarified that Reliance Jio and Bharti Airtel’s dominance stems from their ability to invest heavily in infrastructure, enabling India to achieve the world’s fastest 5G rollout.

“The duopoly has not been created intentionally by anybody. Telecom requires massive capex”, he stated, emphasising that the market naturally favored those with the ability to scale and deploy capital effectively.

While acknowledging the current landscape, Pemmasani reaffirmed the government's intention to encourage greater competition. “Our goal is not to have only two players”, he said, noting efforts to revive Vodafone Idea by converting Rs 36,000 crore into equity. However, he admitted the company still faces challenges and continues to seek government assistance.

The revival of state-owned Bharat Sanchar Nigam Ltd (BSNL) is also underway, though progress has been slow. Pemmasani attributed the delay to the government’s emphasis on developing indigenous technologies. “BSNL's revival is taking longer because we are focused on building homegrown solutions. But eventually, BSNL will become a strong alternative”, he asserted.

Looking to the future, Pemmasani outlined India’s ambition to be at the forefront of 6G innovation. With countries like the US and China targeting 2030 for commercial 6G rollouts, India aims to match their pace. “With 6G, we’ve already contributed 10% of the global standards and filed over 200 patents”, he said, a significant improvement from previous generations where India had little presence in global standard-setting.

Highlighting the country’s digital transformation, he said India now boasts 1.2 billion mobile subscribers, 1 billion broadband users, and 2.2 lakh villages connected via BharatNet. The government plans to invest an additional $18 billion to connect 40,000 gram panchayats and 1.5 crore rural households with high-speed internet.

He also spotlighted India’s shift from being an importer to an exporter of mobile devices, with Rs 1.8 trillion worth exported annually. Through the Telecom Technology Development Fund, nearly Rs 500 crore has been extended to 120 high-tech startups. Pemmasani concluded by acknowledging the dual nature of AI, noting its potential to both disrupt and empower, particularly in combating telecom-related financial fraud.