The Indian telecom industry has undergone a series of dramatic twists and turns since its inception. The shift from a fixed license fee regime to a revenue-sharing model, the entry of WLL (Wireless Local Loop) operators into full mobility in 2003, the influx of new operators at subsidized rates in 2008, and the auction of 3G spectrum in 2010 — culminating in the 2G scam and the Supreme Court’s cancellation of licenses in 2012 — collectively shaped the early disruptions. The industry then witnessed the exit of several new entrants, burdened by high auction fees and the disruptive entry of RJIO in 2016. The AGR judgment of 2019–20 further crippled Vodafone Idea (VI), setting the stage for the announcement of the telecom relief package in 2021, which granted a four-year moratorium on DoT dues to all operators.
The first phase of tariff hikes followed, significantly raising Bharti’s ARPU, although the gains for RJIO and VI were relatively modest — highlighting that tariff hikes primarily benefited the strongest players. After navigating through such turbulence, the government’s focus has shifted toward stabilizing the sector, particularly through the revival efforts for VI and BSNL. Key developments — such as the first telecom relief package of 2021, the conversion of VI’s government dues into a 49% equity stake, and the extensive BSNL revival package — suggest that the government now recognizes that further collapse of the telecom industry would not be in the national interest.
