MC Interview: Govt plans Telecom Manufacturing Zone, backs healthy competition in satcom, says telecom minister Scindia

Union Minister Jyotiraditya Scindia

From expansion of 5G network, talk of 6G, likely entry of Elon Musk’s Starlink to war on spam, India’s telecom sector is buzzing and union minister for communications Jyotiraditya Scindia is in thick of things.

In an exclusive interview to Moneycontrol, Scindia said the government is exploring the creation of a Telecom Manufacturing Zone to strengthen domestic equipment production.

He also welcomed Starlink’s partnerships with Jio Platforms and Bharti Airtel, saying that satellite communication is essential for 100 percent connectivity even as he underscored the government’s commitment to maintaining a competitive telecom market. Edited excerpts of the interview:

As the largest shareholder in Vodafone Idea, is the government satisfied with its current state? Is there a long-term commitment to its survival?

The government owns about 23 percent of Vodafone Idea, which holds a 9.5 percent mobile market share. We believe in maintaining healthy competition in the telecom sector. India is one of the few global markets with four telecom players, making it a vibrant and competitive landscape. Vodafone Idea has successfully raised Rs 25,000 crore in equity and we look forward to its expansion plans.

But, according to the management, the telco's debt-funding plan depends on the government's AGR dues relief package. Any comments?

That is a matter for the company to decide.

There is speculation about a possible AGR dues relief, including waiving penalties and interest. 

I will not comment on that at this point, as it is not on my table.

With Jio and Airtel partnering with Starlink, how do you see the future of satellite broadband in India? What role could it play in connectivity?

Satellite communication (Satcom) is a crucial complementary solution to telecom connectivity. While mobile networks and optical fiber cables (OFC) serve most areas, certain remote locations are beyond their reach. Satcom bridges this gap, ensuring 100 percent coverage.

Moreover, when towers and OFC (optical fibre cable ) infrastructure are disrupted during natural disasters, Satcom plays a vital role in maintaining communication.
India has already issued two satellite broadband licences, to OneWeb and Orbit Connect (Jio-SES).

Our market is open to all players, provided they meet the necessary requirements — filling out the pro forma, obtaining a licence, securing spectrum (administratively assigned), and commencing operations.

It’s been two years since Starlink applied for a licence. Any updates?

The licensing process is between the company and the regulatory system. They must fulfil all application requirements, and once they do, they will receive their licence. TRAI will soon determine spectrum pricing, and upon finalisation, the government will allocate spectrum accordingly.

Will Starlink’s entry reshape India's satcom market?

Not just Starlink but all players contribute to opening up the satcom space. I am company-agnostic and consumer-focused. The key is to offer consumers a choice — whether they prefer broadband or mobile, they should have access to both.

Are steps being taken to attract FDI in India’s telecom sector?

India has already attracted significant FDI in telecoms. However, the Prime Minister envisions transforming the sector beyond service provision into a manufacturing hub.

We are exploring establishing a Telecom Manufacturing Zone (TMZ), similar to a special economic zone (SEZ), with added facilities like testing and certification. We are discussing this with manufacturers and potential anchor clients to make it a reality.

The telecom sector is evolving rapidly, and in recent months, the government has waived bank guarantees for past spectrum auctions. Are there any upcoming policy reforms to enhance competition and ensure financial stability?

The communication sector is no longer just about connectivity. In 2014, the Prime Minister laid out a visionary path for India, emphasising 100 percent connectivity for essential communication and broader economic empowerment.

Over the years, mobile subscribers have increased from 950 million to 1.2 billion, internet users from 251 million to 972 million and broadband subscribers from 60 million to 942 million. This expansion has led to economies of scale, reducing costs dramatically — from 50 paise per minute to 0.03 paise and from Rs 286 per GB of data to Rs 9 per GB. Today, India offers the world’s cheapest data at just 11 cents per GB, compared to the global average of $2.59 per GB.

This affordability is transformative, driving advancements in education, healthcare, and economic opportunities. For example, a Muga silk producer in Assam can now sell directly to international markets, and a pineapple farmer in Tripura can export to Germany. Connectivity is not just a service but a digital highway enabling trade and growth.

Policy reforms like re-farming spectrum have been crucial in this journey. By reallocating spectrum from various ministries, the government has freed up an additional 687 MHz, bringing us closer to the 2,000 MHz target required by 2030. With 1,587 MHz already assigned, the remaining 400 MHz will be released progressively.

Additionally, BharatNet, the world’s largest publicly funded connectivity programme, is investing Rs 1.39 lakh crore ($16.1 billion) to connect 56,000 gram panchayats and 3.8 lakh villages. Entrepreneurs at the village level will bridge the last-mile connectivity gap. Six project agreements have already been signed, with five more in progress, ensuring rapid deployment.

How is BSNL’s 4G rollout and 5G deployment progressing?

Out of 100,000 sites planned, 89,000 have already been installed. The Single Cell Function Test (SCFD) process is ongoing, with 72,000 sites commissioned. We aim to have all 100,000 sites operational by May-June 2025.

Following this, we will transition from 4G to 5G, likely starting in June. This will require additional hardware and software upgrades for a smooth transition.

Will India’s telecom technology be export-ready?

Absolutely. India is now the fifth country globally to develop its own 4G technology, joining China, South Korea, Finland, and Sweden. This aligns with the Prime Minister’s vision of an indigenous telecom ecosystem. Post-June, we will extend this to 5G, enhancing India’s position as a telecom technology exporter.

Is the government satisfied with telecom operators’ efforts to curb spam calls and unsolicited communications? Are more measures being looked at?

Significant progress has been made but more needs to be done. While technology offers tremendous benefits, it also creates opportunities for misuse. It is our responsibility to safeguard consumers.

Through the Sanchar Saathi portal, we have disconnected 1.75 crore fraudulent mobile connections and shut down 1.5 lakh WhatsApp groups linked to fraud.

Additionally, a Digital Intelligence Unit (DIU) has been established to monitor fraud in collaboration with banks, the Home Ministry, and other agencies. The I-Core Spoof Call Monitoring System has blocked 1.3 crore spoof calls per day.

We are actively working to ensure consumer protection across the telecom ecosystem.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.