The mobile phone sector in India was stagnant for a few years because of an uncertain policy and regulatory environment. There was a reduction in the net addition to subscribers, an increase in the urban–rural divide, hyper-competition, and inefficient use of spectrum, which meant poor services, low investment, high debt, and a fall in revenue and profit. However, the sector’s performance has been improving after the announcement of the new telecom policy in 2012 and other regulatory changes.