India's Telecom and Semiconductor Landscape: Key Updates
Friday, 20 September 2024, 12:55 IST
The Indian telecom and semiconductor sectors are witnessing significant movements, with various initiatives and challenges shaping the landscape.
The Centre is nearing the finalization of bids for providing AI infrastructure services under its AI mission, with a new National Digital Communications Policy (NDCP) expected to be unveiled by April next year. Meanwhile, leading companies VVDN, Lekha, Galore, and Niral have commenced 5G trials for MTNL in Delhi, signaling advancements in next-generation connectivity.
However, the financial stability of Vodafone Idea (Vi) remains precarious as it faces a potential crisis in the absence of relief on adjusted gross revenue (AGR) dues. The Supreme Court has recently rejected pleas from telecom operators for a recalculation of these dues, further complicating the financial landscape for Vi.
In positive news for Maharashtra, the Chief Minister inaugurated the state’s first semiconductor manufacturing unit, a move that aligns with India's ambition to become a global leader in the semiconductor industry within the next decade. The government aims for a target of USD 500 billion in electronics manufacturing by 2030, with industry experts asserting that this goal is achievable.
Regulatory developments are also underway, with TRAI recommending a new telecom licensing framework categorized into three tiers while excluding over-the-top (OTT) services. The government is steering mobile device manufacturers under the Production-Linked Incentive (PLI) scheme to emphasize design aspects.
Amidst these developments, Airtel plans to award $1 billion in 4G contracts to vendors over the next three years. The IT services sector has shown robust deal wins in August, primarily driven by consumer packaged goods (CPG) demand.
In a notable incident, a fire at a Reliance Jio data center resulted in a nationwide network outage, underscoring the vulnerabilities within the telecom infrastructure. Additionally, MTNL is likely to be classified as a non-performing asset (NPA) in the second quarter as banks express concerns over potential loan haircuts.
The semiconductor landscape is also evolving, with the Yamuna Authority approving a semiconductor park near the upcoming Jewar airport. The government is expected to introduce the Semicon 2.0 policy in the next three to four months, while DoT has issued stricter procurement notifications aimed at promoting indigenous technologies.
As India continues to enhance its semiconductor capabilities and address challenges within the telecom sector, the synergy between these industries is anticipated to drive the nation’s technological advancement and global competitiveness.
The Centre is nearing the finalization of bids for providing AI infrastructure services under its AI mission, with a new National Digital Communications Policy (NDCP) expected to be unveiled by April next year. Meanwhile, leading companies VVDN, Lekha, Galore, and Niral have commenced 5G trials for MTNL in Delhi, signaling advancements in next-generation connectivity.
However, the financial stability of Vodafone Idea (Vi) remains precarious as it faces a potential crisis in the absence of relief on adjusted gross revenue (AGR) dues. The Supreme Court has recently rejected pleas from telecom operators for a recalculation of these dues, further complicating the financial landscape for Vi.
In positive news for Maharashtra, the Chief Minister inaugurated the state’s first semiconductor manufacturing unit, a move that aligns with India's ambition to become a global leader in the semiconductor industry within the next decade. The government aims for a target of USD 500 billion in electronics manufacturing by 2030, with industry experts asserting that this goal is achievable.
Regulatory developments are also underway, with TRAI recommending a new telecom licensing framework categorized into three tiers while excluding over-the-top (OTT) services. The government is steering mobile device manufacturers under the Production-Linked Incentive (PLI) scheme to emphasize design aspects.
Amidst these developments, Airtel plans to award $1 billion in 4G contracts to vendors over the next three years. The IT services sector has shown robust deal wins in August, primarily driven by consumer packaged goods (CPG) demand.
In a notable incident, a fire at a Reliance Jio data center resulted in a nationwide network outage, underscoring the vulnerabilities within the telecom infrastructure. Additionally, MTNL is likely to be classified as a non-performing asset (NPA) in the second quarter as banks express concerns over potential loan haircuts.
The semiconductor landscape is also evolving, with the Yamuna Authority approving a semiconductor park near the upcoming Jewar airport. The government is expected to introduce the Semicon 2.0 policy in the next three to four months, while DoT has issued stricter procurement notifications aimed at promoting indigenous technologies.
As India continues to enhance its semiconductor capabilities and address challenges within the telecom sector, the synergy between these industries is anticipated to drive the nation’s technological advancement and global competitiveness.
