Telecom Regulatory Authority Of India: Navigating India’s 5G Era 

Policy Update
Tulsi Kumari

Introduction

Telecom Regulatory Authority of India (TRAI) was set up on 20 February 1997 under the TRAI Act, 1997. It came into being because India’s telecom sector was opening up to private players under the National Telecom Policy 1994 and the government itself was still the main telecom operator. This created a structural conflict of who would regulate a market in which the regulator had a commercial interest. As a result, TRAI was established as an institutional response. It is an independent statutory body that would set tariffs, ensure quality of service, and create a level playing field. 

A key reform came in 2000. The TRAI Act was amended to separate dispute resolution from regulation. A new body called the ‘Telecom Disputes Settlement and Appellate Tribunal’ (TDSAT) was created to handle conflicts between operators and subscribers. This move freed TRAI to focus on forward-looking regulation rather than getting bogged down in litigation.

The most significant recent shift is the Telecommunications Act, 2023, which replaced the 138-year-old Indian Telegraph Act, 1885. The new law modernises TRAI’s mandate in three important ways: it moves from a licensing model to an “authorisation” model for telecom services; it renames the Universal Service Obligation Fund as Digital Bharat Nidhi (DBN) to fund rural and remote connectivity; and it explicitly brings satellite communication, machine-to-machine (M2M) services, and cybersecurity within TRAI’s regulatory scope. With over 1.2 billion subscribers (Telecom Regulatory Authority of India, 2025), India is now the second-largest telecom market in the world. TRAI is the institution responsible for keeping that market fair, affordable, and forward-ready.

Functioning

TRAI works across four main areas: issuing recommendations to the Department of Telecommunications (DoT); setting tariff and Quality of Service (QoS) standards; protecting consumer rights; and regulating broadcasting and cable television. The process it follows for making decisions is consultative and transparent. It releases consultation papers, invites responses from companies and citizens, holds open house discussions, and then publishes final recommendations or orders.

A key structural feature and limitation is that TRAI’s recommendations to the DoT are advisory and not binding. The government can refer them back for reconsideration. This contrasts with organizations like SEBI, whose orders carry direct legal force. In practice, it means important decisions such as those on spectrum pricing for satellite services can remain in limbo for extended periods. This can create uncertainty for both investors and consumers.

In August 2024, TRAI notified new Quality of Service regulations which required all telecom operators to submit performance data through automated digital interfaces instead of manual filings. This makes regulatory oversight faster and more reliable. In the broadcasting space, TRAI continues to regulate DTH and cable tariffs, though its framework has been slow to adapt to the visible decline in traditional Pay TV viewership as streaming platforms gain ground.

Performance of TRAI

The table below captures the most telling indicators from TRAI’s Annual Report 2024-25 and the Yearly Performance Indicators report (PIB, January 2026):

 Table 1: Key Telecom Sector Indicators (FY 2022-23 vs FY 2024-25)

 Source: TRAI Annual Report 2024-25; TRAI Yearly Performance Indicators (PIB, January 2026)

Figure 2: TRAI Sector Performance Indicators, FY 2024-25

Source: TRAI Annual Report 2024-25; PIB, January 2026

Figure 2: Connectivity Growth and Key Metrics (FY 2022-23 vs FY 2024-25) 

Source: TRAI Annual Report 2024-25; PIB, January 2026

The headline story is India’s 5G rollout launched on 1 October 2022 and now covering 99.6% of districts within just two years, with 4.69 lakh base stations deployed. This is one of the fastest 5G expansions globally. But not all numbers point upward. Pay DTH subscribers have fallen from ~62 million to 56.92 million , a decline driven by cord-cutting as OTT platforms grow. This is a structural market shift, and TRAI’s broadcasting regulatory framework has not meaningfully adapted to it.

Fig 3: Pay DTH Subscriber Decline

Source: Telecom Regulatory Authority of India. (2025). Indian telecom services: Yearly performance indicators 2024-25. PIB, January 2026.

The Adjusted Gross Revenue (AGR) of the telecom sector grew 15.52% YoY, signalling a financially healthier sector. However, this recovery comes after intense consolidation: the market is now dominated by just three players which are Jio, Airtel, and BSNL, thereby raising legitimate questions about whether competition is robust enough to keep consumer prices fair over the long run.

 Impact

TRAI’s most important contribution is to India’s data economy. Through tariff regulation and competitive market facilitation, India now has among the lowest mobile data prices in the world. This, however, is not an abstraction: cheap data is what makes digital public infrastructure work at scale. The Unified Payments Interface (UPI) processed over 18,000 crore transactions in 2024-25. This shows that affordable mobile connectivity rests on the foundation that TRAI’s regulatory environment helped build.

On consumer protection, TRAI’s 2024 directive on spam and phishing such as banning unregistered URLs in commercial messages from September 2024 and blacklisting non-compliant telemarketers has visibly reduced fraudulent communication volumes. The Digital Consent Management pilot, launched jointly with the Reserve Bank of India in mid-2025 is also   forward-looking step: it gives consumers more control over how their data is used for commercial communications, thereby anticipating the broader rollout of the Digital Personal Data Protection Act, 2023.

Where TRAI’s impact has been weaker is at the last mile. The PM-WANI (Wi-Fi Access Network Interface) scheme which TRAI championed to turn local shops into public Wi-Fi hotspots has seen limited uptake. The policy design is sound but the commercial incentives have not been attractive enough for mass adoption.This is a recurring pattern: TRAI can set the rules but not the execution. The execution depends on a variety of actors such as DoT, state governments, local entrepreneurs that do not always move at the same pace.

Emerging Issues 

OTT Regulatory Vacuum

Telecom operators argue that communication apps like WhatsApp and Google Meet use the same network infrastructure without any of the licensing or regulatory obligations that operators must follow. TRAI has been deliberating this for over four years with no binding outcome. A tiered, proportionate framework such as light-touch for small platforms, more obligations for large ones is the most practical path forward, drawing from European models like the EU’s Digital Markets Act.

Satellite Spectrum Pricing

The entry of global LEO operators like Starlink and OneWeb, alongside domestic players like Jio SatCom has had significant impacts. It has made satellite spectrum pricing one of the most fought-over regulatory questions of 2024-25. The debate between administrative allocation and auction-based assignment remains unresolved. TRAI needs to finalise a transparent, internationally benchmarked framework to give investors and consumers clarity.

Quality of Service vs. Ground Reality

 The 2024 QoS regulation is a step forward, but consumer complaints about call drops and poor data speeds, especially in rural and peri-urban areas where it remains high. Penalties for non-compliance are low in comparison to the operator revenues. There is a need for stronger penalty structures and mandatory public disclosure of district-level QoS performance to improve both compliance and trust.

Non-Binding Recommendations

 TRAI’s recommendations to the DoT can wait months or years for a response. This regulatory limbo is costly for businesses that need policy certainty and for consumers whose interests depend on timely decisions. Parliament should consider prescribing a mandatory response timeline for the DoT on TRAI recommendations.

Digital Bharat Nidhi Execution

The renamed USOF has a critical mandate: fund connectivity in areas where commercial operators will not go. CAG reviews have historically flagged slow project execution and fund underutilisation. A real-time MIS dashboard which is publicly accessible for DBN fund deployment with parliamentary oversight is needed.

Telecom Cybersecurity

 Draft Telecom Cybersecurity Amendment Rules (June 2025) have expanded breach notification obligations, but coordination between TRAI, DoT, and CERT-In remains fragmented. eSIM vulnerabilities and API security risks in telecom networks are growing concerns that need a unified, enforceable compliance framework.

Way Forward

TRAI’s record over nearly three decades is, on balance, a positive one. It helped build a competitive, affordable telecom market in one of the world’s most complex countries and it did so without the institutional tools that stronger regulators elsewhere take for granted. The Telecommunications Act, 2023 is the most significant opportunity TRAI has had since its founding to upgrade its approach.

Three priorities should define the next phase. First of all, there is a need to clear the backlog: OTT regulation, satellite spectrum pricing, and rural QoS enforcement have been deliberated long enough, they need decisions, not more consultations. 

Second, build enforcement credibility: TRAI’s orders must carry consequences, which requires either legislative reform or a formal, time-bound obligation on the DoT to act on TRAI’s recommendations. Third, get ahead of the curve: regulatory frameworks for 6G, AI-driven networks, and non-terrestrial communications must be developed before commercial deployments create facts on the ground that policy can no longer shape.

India’s digital economy will only be as equitable and dynamic as the regulatory environment which governs it. There is a need for stronger and more independent TRAI with clear enforcement powers and a genuinely forward-looking mandate is not just a regulatory need. It is a precondition for realising the Viksit Bharat vision of a digitally empowered India by 2047. 

References

Comptroller and Auditor General of India. Reports on USOF / Digital Bharat Nidhi. https://www.cag.gov.in

Centre for Internet and Society (CIS). TRAI Act, 1997. https://cis-india.org/telecom/resources/trai-act-1997

DD News (January 2026). India Records Rapid 5G Expansion: TRAI Annual Report 2024-25. https://ddnews.gov.in/en/india-records-rapid-5g-expansion-telecom-sector-sees-all-round-growth-in-2024-25-trai/

Department of Telecommunications (2023). Telecommunications Act, 2023. Ministry of Communications, Government of India. https://dot.gov.in/actrules/telecom-regulatory-authority-india-trai-act-1997

JSA Law (2025). JSA Newsletter: Telecommunications, 21st Edition, April–June 2025. https://www.jsalaw.com/newsletters-and-updates/jsa-newsletter-telecommunications-april-june-2025/

TRAI. History and Functions. Telecom Regulatory Authority of India. https://www.trai.gov.in/about-us/history

TRAI. Quarterly Performance Indicators Reports. Telecom Regulatory Authority of India. https://www.trai.gov.in/release-publication/reports/performance-indicators-reports

TRAI (2024). Quality of Service of Access and Broadband Regulations, August 2024. Telecom Regulatory Authority of India. https://www.trai.gov.in

TRAI (2025). Annual Report 2024-25. Telecom Regulatory Authority of India. PIB, December 2025. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2211766

TRAI (2025). Indian Telecom Services Yearly Performance Indicators 2024-25. PIB, January 2026. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2143158

About the Contributor:

Tulsi Kumari is a Policy Research and Editorial Intern at IMPRI. She is currently pursuing a Master’s degree in Public Policy and Governance at TISS Hyderabad and holds a bachelor’s degree in Political Science. Her research interests include institutions, public economics, and gender studies.

Acknowledgment

The author extends sincere gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process.

Disclaimer

All views expressed in the article belong solely to the author and not necessarily to the organisation.

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