Network effects in Indian telecom

The telecom sector is buzzing again, making this book timely and relevant.

- NIVEDITA MOOKERJI

There's action both on the terrestrial telephony front and the satellite side of the business. In a surprise move, Sunil Mittal-led Bharti Airtel Group recently approached the Department of Telecommunications (DoT) seeking conversion of its AGR dues into government equity under the package offered for stressed telecom companies (telcos) in 2021. Vodafone Idea is a recipient of that package and Airtel clarified in its post-earnings call that it was exploring a level playing field. Both these telcos, along with Tata Teleservices, also moved the Supreme Court seeking relief on their dues linked to adjusted gross revenue (AGR), and the top court rejected the plea.

Now, satcom broadband is aiming to go where terrestrial could never reach with internet connections—the remotest corners of the country. Airtel and Reliance Jio are gearing up to step up their play in the skies as Elon Musk's Starlink and Jeff Bezos' Kuiper join the fray. The method of spectrum allocation—auction versus administered distribution—has already seen fierce debate between terrestrial and satellite players, and is not expected to lose steam anytime soon.

Against this setting,