Mint Explainer: Does India's telecom sector need more reforms?

India's telecom sector is a critical pillar of the country’s digital economy. Major telecom operators, especially Bharti Airtel and Vodafone Idea, have been able to improve their financials with increased average revenue per user, consolidation within the sector, and a reduced need for competitive price cuts. These reforms were a turning point, aimed at providing relief to the cash-strapped telecom sector, improving the industry’s financial health, and encouraging infrastructure investments. Reducing and reviewing dues that telcos owe on account of adjusted gross revenue - income from core services like mobile and internet that is used by the government to levy spectrum usage charge and licence fee - over the past many years has been one of the key demands of carriers, with operators arguing that the government’s revenue-sharing model unfairly includes non-telecom services like content distribution. While the government has made significant strides in reforming the Indian telecom sector, more is needed, especially to improve services for consumers and ensure long-term sector growth.