Telecom

Elon Musk’s Starlink, the satellite broadband venture of SpaceX, is moving closer to receiving its long-awaited operating permit in India, but approval remains contingent on meeting strict data security norms. The government has emphasized that satellite communication players must adhere to Indian regulations on data localization, lawful interception, and cybersecurity safeguards. While Starlink promises to expand rural internet access and enhance digital inclusion, regulators are cautious about sensitive data being routed through offshore servers.

The Department of Telecommunications (DoT) has refused to grant adjusted gross revenue (AGR) relief to Vodafone Idea, reinforcing the ongoing financial stress within India’s telecom sector. The decision comes amid mounting debt, high spectrum liabilities, and competitive pressures that have challenged the profitability of telecom operators. Vodafone Idea, already navigating operational constraints and regulatory obligations, must now manage its cash flows and repayment schedules without relief on AGR dues.

Bharat Sanchar Nigam Limited (BSNL) has sanctioned a capital expenditure (Capex) plan of Rs 6,982 crore for 2025, aiming to bolster its telecom infrastructure and expand network capabilities across India. The investment will focus on enhancing 4G and broadband services, strengthening optical fiber networks, and upgrading IT systems to improve operational efficiency. Analysts view this as a strategic move to enhance service quality, compete effectively in a crowded telecom market, and accelerate digital connectivity initiatives under government programs.

India’s data centre industry is witnessing an unprecedented boom, fueled by the country’s rapid digital adoption, rising demand for cloud services, and the government’s push for digital infrastructure. Nxtra by Airtel, one of the leading players in the sector, is positioning itself at the forefront of this transformation. In a recent industry outlook, Nxtra’s chief executive officer underscored how strategic investments, sustainability commitments, and global partnerships are shaping the company’s growth trajectory.

The Central Bureau of Investigation (CBI) has conducted searches at the residence of industrialist Anil Ambani and multiple premises linked to Reliance Communications (RCom) as part of an ongoing investigation into alleged financial irregularities. The action, which marks a significant escalation in the probe, underscores growing scrutiny of corporate governance within large business groups.

The Central Bureau of Investigation (CBI) has initiated a case against industrialist Anil Ambani and his company Reliance Communications (RCom) over alleged irregularities linked to a multi-crore bank fraud. The case centers on accusations of misrepresentation, diversion of funds, and willful default on significant loans taken from a consortium of banks. This development marks a critical setback for the former telecom giant, which has already faced insolvency proceedings and financial collapse in recent years.

Bharti Hexacom, the regional arm of Bharti Airtel, has announced plans to divest its tower infrastructure for Rs. 1,134 crore. The strategic move reflects the telecom industry’s broader shift toward asset-light models, enabling operators to channel resources into high-growth areas such as 5G expansion, digital services, and customer experience enhancements. By monetizing non-core assets, Bharti Hexacom aims to strengthen its balance sheet and improve operational efficiency, while investors see the transaction as a step toward long-term value creation.

Reliance Jio’s latest move on data tariffs has sent ripples across India’s telecom sector, signaling intensified competition for Bharti Airtel and Vodafone Idea. The pricing strategy, which emphasizes affordable data access while maintaining profitability, underscores Jio’s long-term vision to consolidate its market dominance. For rivals, this shift represents both a challenge and an opportunity: the need to balance tariff adjustments with financial sustainability.

The Indian Cellular & Electronics Association (ICEA) has recommended a 5% Goods and Services Tax (GST) on mobile phones to support India’s ambitious goal of building a USD 500 billion digital economy. The proposal aims to balance revenue generation with affordability, enabling greater smartphone penetration and driving growth in digital services, e-commerce, and fintech sectors. ICEA emphasizes that a lower GST rate will stimulate domestic manufacturing, attract investment, and accelerate the adoption of digital technologies across urban and rural India.

Vodafone Idea Ltd (Vi), one of India’s leading telecom operators, is actively exploring non-banking financing avenues to reinforce its capital structure and support operational liquidity. The company aims to diversify funding sources beyond traditional bank loans, potentially leveraging instruments such as bonds, non-convertible debentures, or private placements. Analysts view this move as a strategic step to mitigate dependency on banking credit, optimize interest costs, and sustain network expansion amid rising data demand.