India explores data taxation model as PM seeks new telecom revenue streams. The Department of Telecommunications has been tasked with studying a potential tax on data usage, with a September 2026 deadline for recommendations. The proposal aims to generate government revenue while potentially curbing excessive screen time, particularly among children. At current usage levels of 229 billion GB annually, even a modest one rupee per GB levy could generate approximately 22,900 crore rupees. The government is diversifying telecom revenue beyond traditional spectrum auctions and licensing fees. However, industry experts warn such taxation could disrupt innovation and user experience. The review also directed BSNL workforce reduction and enhanced SIM card verification requirements through Aadhaar biometric authentication.
