In June, Jyotiraditya Scindia took over the reins as the Union Cabinet Minister of Communications from the current Minister for Railways, IT and I&B, Ashwini Vaishnaw. The latest shift in leadership at the telecom ministry has brought key targets and changes to the sector. In a bid to catalyse one of India's most important industries, the new cabinet minister has taken several vital first steps of progression in various aspects-in which two key themes include involving industry stakeholders and rural connectivity.
The moves have set the ball rolling for a telecommunications market that has seen phases of stagnancy, growth, and flat investment in the past months. Despite India's 5G rollout, monetisation has remained a concern for India's telcos, which they addressed recently with a hike in tariffs across all price bands. This, however, has not gone well for most customers, leading to protests in various quarters.
Scindia's task, therefore, is cut out. On the one hand, the Centre needs to encourage consumers to make higher purchases, which will only happen as 5G applications become critical and users start finding intrinsic value in them. On the other hand, telecom operators have voiced concerns about increasing the average revenue per user (ARPU) among consumers, which they have stated is critical for investing in future technologies.
On this note, here is a look at the first four initiatives undertaken under Scindia's charge in the telecom industry and how they can impact the overall industry.
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