Indian cities are going through a digital revolution. The government’s efforts towards the Smart Cities Mission aim to transform 100 cities by 2026. At the heart of this transformation is telecommunications. It’s no longer just about phone calls—telecom is now the invisible force connecting every aspect of smart cities.
5G technology is set to supercharge this evolution. A report by Jupiter done in 2023 predicted that this sector will generate $17 billion in revenue by 2030. Meanwhile, IoT connections are booming, expected to hit 2 billion by 2025. The core of smart cities is this robust network. It manages traffic, ensures public safety, and monitors the environment as well. Telecom connects sensors, devices, and analytics tools, making cities smarter and more efficient.
The benefits of this development are clear. Traffic moves more efficiently, waste management gets better, and public safety is strengthened—all while cutting costs and saving resources. Edge computing is providing real-time solutions to urban issues, making city services quicker and more responsive. And, as the cities continue to grow, telecommunications are also changing with them. As, it’s no longer just supporting urban life; it’s transforming it.
Key Innovations in Telecom Driving Smart Cities
5G Deployment
Now, the 5G rollout is growing throughout the country and plans to service 40% of the population by 2025. This ultra-fast network is rapidly becoming the backbone for smart cities and IoT advancements. Telecom industry rules have always played an important role. Efficient frequency management and trading to help speedy 5G adoption, future-proofing India’s digital infrastructure. The results are visible, with 5G fueling smarter traffic management, more constructive waste systems, and enhanced public safety in cities. India is projected to reach 500 million 5G subscribers by 2025, bolstering its technological advancements such as IoT and autonomous technologies. 5G is more than just high-speed connectivity; it represents a fundamental transformation of India’s smart city vision, potentially changing urban life through advanced technological infrastructure.
IoT (Internet of Things)
With the help of IoTs, the nation is transforming the lives of its urban citizens. From smart traffic lights to energy-efficient buildings, it’s revolutionizing city services. According to a report by GSMA, there will be 37.4 billion IoT connections by 2030. Smart grids use IoT to enable flawless communication between the energy producers and consumers. Sensors monitor performance, allowing utilities to anticipate demand, prevent overloads, and quickly address outages. Edge computing plays a pivotal role by processing data on-site, slashing response times. This enables instant reactions to changing conditions in traffic, public safety, and environmental monitoring.
Edge Computing
This technology slashes latency compared to cloud-based systems. It improves operational efficiency while enhancing security by processing sensitive information locally.
Edge computing is primarily used for controlling traffic, public safety, energy optimization, and environmental monitoring, making cities’ systems more reliable and resilient. Multi-cloud management is important for coordinating and optimizing edge computing ecosystems. Consegic Business Intelligence, a data measurement and analytics service provider, forecasted in 2024 that the multi-cloud management market will reach over $69 billion by 2031, growing at a 29.7% CAGR.
Fiber Optic Networks
The Asia-Pacific region dominates the fiber optics market across the globe due to speedy urbanization and governmental schemes for connectivity. The newly joining destinations include rural India, where the fiber network is controlled by the Government of India through Bharat Sanchar Nigam Limited (BSNL), which is building a fiber network of 680,000 km, and the Universal Service Obligation Fund [USOF], which is building a fiber network of 567,000 km.
Initiatives such as BharatNet and Digital India work in synergy to help speed up broadband roll-out and pave the way for 5G and smart cities for e-governance. As This closes the digital divide of India. Some of the fiber optic investments allow for seamless connectivity to drive high-growth digital economies and smart city projects across Asia.
Cloud and AI Integration
Telecom companies are increasingly using AI to automate and optimize network operations. This means better performance, faster issue resolution, and more genuine service. AI also equips data-driven innovation, leading to new service offerings and improved resource allocation.
This kind of connectivity allows us to distribute AI’s power over computation between many devices. As 5G continues to roll out, you will find AI improving network planning and performance, as well as helping to provide an enhanced user experience. It considers elements such as population density and terrain to help point satellite planners to optimal 5G cell site locations.
Impact on Urban Connectivity and Services
The telecom industry, with the help of AI analytics-driven surveillance systems, is going a long way to ensure public safety, where they help in threat detection and response time has become better. Connectivity solutions include smart traffic signals and information about real-time updates in public transit. These solutions can help in managing transportation efficiently, reduce congestion, and minimize emissions. Nowadays, digital platforms, especially mobile apps, are major factors that are facilitating the engagement of citizens with government services, leading to more transparency, accessibility, and participatory processes.
These telecom-enabled services were also responsible for the 25% dip in crime rate in the bigger Indian cities from 2015 to 2021, the intelligent transport system’s 20% decrease in traffic congestion, and the 15% decrease in carbon emission, according to a TRAI report. According to the same TRAI report, e-governance initiatives had led to a 30% upward citizen satisfaction with government services, whilst sustainable urban development projects have seen a reduction of 12% energy use and an increase of 18% recycling of waste.
Challenges and Solutions
A recent NASSCOM study highlights a significant funding challenge for India’s smart city vision, revealing a $17 billion shortfall in the infrastructure investment required for 2024. The government has earmarked $7 billion for the Bharat Net project to reach 600,000 villages with fiber optics internet to bridge this gap. Moreover, our private sector Indian telecom companies have committed to investing $10 billion in the next three years to expand 5G coverage across our cities.
Apart from its financial impact, the NASSCOM report a concerning 60% of Indian cities experienced a cybersecurity breach over the past year, with each breach costing an average of $1 million. In response, the government has announced that all projects in smart cities will have to use best-in-class encryption and undergo regular security checks, to more effectively safeguard sensitive information.
To accomplish this scalability, the report recommends cities deliver cloud-based, modular platforms capable of layering in new technology and expanding services when necessary. Cities such as Pune and Surat are already implementing this, where the smart city infrastructure has increased by 35 and 40 per cent, respectively, in the last two years.
