**Executive Summary**
This document addresses Unstarred Question No. 1906 in Lok Sabha, concerning the decline in the number of telecom service providers and safeguarding consumer interests. The Minister of Communications responded to the questions on February 11, 2026, outlining the government's awareness of the telecom sector's structure and measures taken to promote competition and protect consumer interests. The response details various government initiatives to encourage investment and ensure affordable telecom services.
**Key Points / Main Content**
* **Telecom Service Providers:**
* India has 3-4 mobile service providers, which is comparable to other economies.
* India has three private sector Telecom Service Providers and one public sector Telecom Service Provider offering mobile services.
* **Government Measures to Promote Competition:**
* Rationalization of the Definition of Adjusted Gross Revenue (AGR).
* Rationalization of Interest rates and removal of Penalties for delayed payments of License Fee (LF).
* Rationalization of Bank Guarantee requirements under the license agreement.
* Removal of levy of Spectrum Usage Charges on the spectrum acquired in auctions held after September 2021.
* Provision for payment of Spectrum in 20 equal annual instalments for auctions held after September 2021.
* 100% Foreign Direct Investment (FDI) under automatic route permitted in Telecom Sector with applicable safeguards to encourage investment.
* **Tariff Regulation:**
* Tariffs for telecommunication services are under forbearance, except for national roaming, rural fixed line services and leased circuits, Mobile Number Portability (MNP), and Unstructured Supplementary Service Data (USSD).
* Indian telecom tariffs are among the lowest globally.
**Impact Analysis**
**Telecom Service Providers**
* **Impact:** Benefit from rationalized definitions, rates, and reduced financial burdens (AGR, penalties, bank guarantees, spectrum usage charges). These policies facilitate investment and ease operational costs.
* **Action Required:** Understand and adapt to the new regulatory framework to optimize business strategies and investment opportunities.
**Consumers**
* **Impact:** Intended benefit from healthy competition and affordable telecom services. Safeguards are in place to protect consumer interests amid fewer market players.
* **Action Required:** Monitor the market to ensure fair pricing and quality services, utilizing existing regulatory frameworks for grievance redressal if necessary.
**Government**
* **Impact:** Enhanced FDI and potential investment in the Telecom sector.
* **Action Required:** Monitor the impact of policies and regulatory changes on the telecom sector and consumer interests.
Key Entities Referenced
Ministry of Communications: The primary ministry responsible for the telecom sector, mentioned as the recipient of the Lok Sabha question.
Adjusted Gross Revenue (AGR): A key revenue-related term in the telecom sector, mentioned as being rationalized.
License Fee (LF): Mentioned in the context of rationalization of interest rates and removal of penalties for delayed payments.
Spectrum Usage Charges: Levy on spectrum acquired in auctions held after September 2021 that has been removed, indicating policy change.
Foreign Direct Investment (FDI): 100% FDI is permitted in Telecom Sector with applicable safeguards.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 1906
TO BE ANSWERED ON 11TH FEBRUARY, 2026
DECLINE IN NUMBER OF TELECOM SERVICE PROVIDERS AND SAFEGUARDING
CONSUMER INTERESTS
1906. SHRI DEEPENDER SINGH HOODA:
Will the Minister of COMMUNICATIONS be pleased to state:
(a) whether the Government is aware that the number of telecom service providers in the country
has declined significantly to effectively just three major private operators at present;
(b) if so, the reasons identified by the Government for the substantial reduction in the number of
telecom companies over the years;
(c) whether the Government has taken note of concerns regarding reduced competition in the
telecom sector and the possibility of monopolistic or duopolistic market tendencies;
(d) whether the Government is taking or proposes to take any measures to promote healthy
competition and encourage more players to enter the telecom sector and if so, the details thereof; and
(e) whether the Government has taken cognisance of the fact that fewer market players may be
taking advantage of rising tariffs and if so, the steps being taken to safeguard consumer interests and
ensure affordable and quality telecom services?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) to (c) In the mobile services market, most comparable economies generally have 3 to 4
service providers. In India, there are also three private sector Telecom Service Providers and one
public sector Telecom Service Provider offering mobile services.
(d) Government has taken measures to promote healthy competition and encourage more players
to enter the telecom sector. These initiatives, inter-alia, include the following
Rationalization of Definition of Adjusted Gross Revenue (AGR).
Rationalization of Interest rates and removal of Penalties for delayed payments of License
Fee (LF).
Rationalization of Bank Guarantee requirements under the license agreement.
Removal of levy of Spectrum Usage Charges on the spectrum acquired in auctions held
after September 2021.
Provision for payment of Spectrum in 20 equal annual instalments for auctions held after
September 2021.
To encourage investment, 100% Foreign Direct Investment (FDI) under automatic route
permitted in Telecom Sector with applicable safeguards.
1(e) As per the existing regulatory framework, tariff including rates and related conditions for
telecommunication services is under forbearance except for national roaming, rural fixed line
services and leased circuits, Mobile Number Portability (MNP), and Unstructured Supplementary
Service Data (USSD). It may also be noted that the Indian telecom tariffs are amongst the lowest in
the world.
*****
2