Context

• The Department of Telecommunications (DoT) has circulated Draft National Telecom Policy (NTP), 2025, for public consultation.

Key Features of the Draft

• 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.

Research and Development Goals

• Attain 10% global share in 6G-related IPRs.
• Position India among the top 10 global hubs for innovation in emerging technologies.

Security and Privacy

• Establish National Telecom SafeNet for network protection.
• Set up biometric-based identification for all telecom users.
• Monitor satellite communications to ensure cybersecurity.

Satellite Connectivity

• Establish a satcom Monitoring Facility (SMF) to monitor satellites and mitigate interference.

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.

About Telecom Industry

• The Indian telecom industry with one of the world’s highest data traffic per connection offers immense growth potential. 
• Industry revenue growth has accelerated after FY19 with CAGR of 13 per cent (FY19-23), compared to just 1.4 per cent during FY13-19.
• Industry consolidation (number of service providers has dropped from 10 in 2017 to just 4 in 2023) augurs well for future pricing growth.

• The industry’s revenue witnessed a decline of negative six per cent CAGR during FY16-19 due to heightened competitiveness and pricing pressure. 
• Since FY19, revenue has been on a steady rise with revenue CAGR of 13 per cent during FY19-23.

Initiatives by Government

• Government schemes and initiatives, including National Digital Communications Policy 2018, and the BharatNet project have played important roles in fostering indigenous manufacturing, expanding digital infrastructure, and bridging the urban-rural digital divide.
• Foreign Direct Investment: The Government of India approved 100% FDI in the telecom sector under an automatic route to encourage investment. 
• Production Linked Scheme, with a financial outlay of INR 12,195 Cr, was launched in 2021 for a period of five years to provide a 4% to 7% incentive on incremental sales over the base year to promote the manufacturing of design-led telecom and networking products manufacturing in India.

Conclusion

• The Draft NTP 2025 marks a strategic shift toward self-reliance, innovation, and secure telecom infrastructure. By addressing past policy gaps and setting bold targets, it aims to transform India into a global telecom hub. Its success, however, hinges on timely execution and ecosystem alignment.