Market Reports

Telecommunication Industry in India

1	Quick Facts: India Telecommunication Industry
2	Overview: Indian Telecommunication Industry
3	Indian Telecommunication Industry: Major Players Outlook
4	Megatrends in the Telecommunication Sector
5	Government Initiatives
6	Why Invest in the Indian Telecom Sector?

Quick Fact: India Telecommunication Industry

India is the world’s second-largest telecommunications market.
As of October 2024, India’s total telephone subscriber base stood at 1,188.2 million.
India is expected to reach 350 million 5G subscriptions by 2026.
The total volume of wireless data usage surged more than tenfold, rising from 4,206 petabytes in Q1 of FY18 to 47,629 petabytes in Q2 of FY24.
India holds the second position globally in both international mobile broadband internet traffic and international internet bandwidth.
Indian telecommunication holds the position of the third-highest sector in terms of FDI inflows into the country.
India’s mobile customer base grew at a steady Compound Annual Growth Rate (CAGR) of 2.9% between 2014 and 2024, reflecting consistent expansion in wireless connectivity over the decade.
As of the first half of fiscal 2024, wireless services made up 97.4% of all telecom customers in India, while only 2.6% used wireline services.
During the 5G auction in 2022, the Indian telecom industry spent INR 1,500 billion, with Reliance Jio spending INR 800.8 billion, Bharti Airtel INR 430.4 billion and Vodafone Idea INR 188.0 billion.
The Digital Communication Innovation Square scheme (DCIS) aims to promote research, development, IPR creation, pilot project and manufacturing, to make India a global hub for telecommunication equipment and digital communication services.
The Public Procurement policy mandates giving preference to local suppliers for telecom products, services or works, particularly when adequate local capacity and competition exist.
As per the latest TRAI regulations, telemarketers are prohibited from using mobile numbers starting with the +91 series for promotional calls and messages to curb spam and protect consumers.

Overview: Indian Telecommunication Industry

India’s telecommunications sector is undergoing a dynamic transformation, driven by innovation, policy reforms and a strong push towards digital inclusion. With substantial investments and strategic initiatives, the government is accelerating connectivity across the nation, particularly in rural and remote areas. The newly introduced usage-based tariff model, where the cost decreases with increased usage, reflects a shift toward affordability and accessibility for all.

As the country prepares for the transition from 5G to the upcoming 6G revolution, the focus has shifted to future-ready technologies that promise ultra-fast data speeds and minimal latency. Semiconductors, especially energy-efficient chip designs, will be at the heart of enabling these advanced networks. Simultaneously, the Internet of Things (IoT) is poised for widespread adoption in sectors like healthcare, smart manufacturing and urban development, amplifying the need for robust, secure digital infrastructure. Cybersecurity has become a top priority as digital dependency deepens, ensuring that these advancements are not only transformative but also secure.

The government’s liberalized FDI policies and streamlined regulatory environment have catalyzed massive growth, attracting over INR 2,204 Bn in foreign investments between April 2000 and March 2024. Further, 100% FDI in the Telecom Sector is allowed under the automatic route. In recognition of the sector’s strategic importance, the Union Budget 2024–25 allocated INR 1,163.4 Bn to the Department of Telecommunications and IT.

Indian Telecommunication Industry: Major Players Outlook

Bharat Sanchar Nigam Limited (BSNL)
Bharat Sanchar Nigam Limited (BSNL) is an Indian central public sector enterprise owned by the Department of Telecommunications, which operates under the Ministry of Communications, Government of India.
Reliance Jio Infocomm Limited
Reliance Jio Infocomm Limited is an Indian telecommunications company and a subsidiary of Jio Platforms, based in Navi Mumbai. It operates a nationwide LTE network covering all 22 telecom circles in India and provides 5G, 4G and 4 G+ services across the country. Jio is also working on developing its 6G service.
Bharti Airtel Limited
Bharti Airtel is an Indian multinational telecommunications company and the second-largest mobile network operator in India and globally. It provides a variety of services, including 5G, 4G and fixed-line broadband and operates in 17 countries across South Asia and Africa. Airtel is a part of Bharti Enterprises.

Vodafone Idea Limited (Vi)
Vodafone Idea Limited, commonly known as Vi, is an Indian telecommunications company formed through the merger of Vodafone India and Idea Cellular. It is a joint venture between the Aditya Birla Group and Vodafone Group. Vi provides mobile telephony, wireless broadband and internet services across India. The company continues to invest in improving its 4G network and is preparing for future technologies, including 5G.

Others
The “Others” category includes various smaller Internet Service Providers (ISPs) and regional operators that collectively contribute to the broadband ecosystem in India. These providers often cater to specific geographic areas or niche markets and include companies offering wired fiber broadband, local wireless solutions and community-based internet services. Though individually smaller in scale, together they hold a notable portion of the market share.

Megatrends in the Telecommunication Sector

Rapid 5G Rollout and Future-Ready Infrastructure for Future 5G Deployments

Accelerated Network Deployment: Aggressive 5G expansion in urban and semi-urban regions.
Private 5G Networks: Enterprises investing in dedicated 5G networks for IoT, automation and security.
Smart Cities Integration: 5G enabling infrastructure for smart traffic, surveillance and utilities.
Edge Computing Rise: Low-latency applications are driving the need for edge data centers.

Growing Mobile Internet Consumption and Digital Inclusion

Rural Internet Penetration: Increased focus on last-mile connectivity in remote areas.
Affordable Data Plans: India continues to offer some of the world’s lowest mobile data costs.
Smartphone Penetration: Surge in low-cost smartphone adoption driving internet growth.
Digital Literacy Drives: Government and private sector initiatives to improve digital skills.

Emergence of AI and Automation in Network Management

AI-Driven Network Optimization: Real-time analytics for better quality of service.
Predictive Maintenance: Automation reduces network downtime and improves efficiency.
Virtual Assistants and Chatbots: Enhanced customer service through AI tools.
Network Function Virtualization (NFV): Software-defined networks replacing traditional hardware.

Increasing Role of Telecom in India’s Digital Economy

Support for Digital India Vision: Telecom backbone for initiatives like Aadhaar, UPI and e-Governance.
Fintech and Mobile Wallet Growth: Telecom companies entering digital payment and fintech spaces.
OTT and Content Streaming Surge: Data demand driven by platforms like JioCinema, Netflix etc.
Enterprise Services Boom: Growth in cloud, IoT and connectivity services for businesses.

Government Initiatives

(PLI) Scheme for Telecom & Networking Products

The Department of Telecommunications (DoT) launched the Production Linked Incentive (PLI) scheme on February 24, 2021, with an outlay of INR 121.9 Bn to boost domestic manufacturing of telecom and networking products in India.
As of January 31, 2025, the scheme has attracted investments of INR 40.8 Bn, generated total sales of INR 786.7 Bn, including INR 149.6 Bn in exports and created employment for 26,351 individuals.
The scheme has been amended to include an additional 1% incentive for products designed, developed and manufactured in India, the inclusion of 11 new products based on industry requirements, flexibility for companies to add approved products anytime during the scheme tenure and the option to file incentive claims quarterly. A total of 33 telecom and networking products are covered under the scheme.

Bharat 6G Strategic Alliances

The Bharat 6G Alliance has signed MoUs with the 6G Smart Networks and Services Industry Association (6G IA) and 6G Flagship-Oulu University, building on an earlier agreement with the NextG Alliance (USA).
These partnerships will support the development of secure telecommunications technologies and resilient supply chains. As part of the Bharat 6G Vision, the Department of Telecommunications (DoT) is evaluating 470 proposals for accelerated 6G research.
These MoUs will foster collaboration between India and the EU, promote joint research, pilot 6G technologies and contribute to global 6G standards.

Development of Millimeter Wave Transceiver For 5G Rural Connectivity

The Centre for Development of Telematics has entered into a partnership with IIT Roorkee to develop a millimeter wave transceiver aimed at enhancing 5G connectivity in rural areas.
This collaboration falls under the Telecom Technology Development Fund (TTDF) initiative by the Department of Telecommunications (DoT), which supports Indian startups, academic institutions and R&D organizations.
The TTDF scheme plays a key role in facilitating the design, development and commercialization of telecom technologies, with the broader objective of making broadband and mobile services more accessible and narrowing the digital divide across the country.

National Broadband Mission (NBM)

The Union Minister launched the National Broadband Mission (NBM) 2.0, building on the achievements of NBM 1.0, which established 0.8 Mn towers and increased broadband subscriptions from 660 Mn to 940 Mn. NBM 2.0 aims to further enhance connectivity and achieve key targets by 2030. Key benefits include:
Expand optical fiber connectivity to 2.7 Mn villages with 95% uptime.
Provide broadband to 90% of anchor institutions (schools, PHCs etc.).
Increase average broadband speed to 100 Mbps from 63.5 Mbps.
Map all government-owned fiber networks by 2026 on PM GatiShakti.
Reduce Right of Way application processing time from 60 days to 30 days by 2030.
Raise rural internet subscribers per 100 population from 45 to 60.
Power 30% of mobile towers with sustainable energy.
Enhance usage of the ‘Call Before u Dig’ app to protect telecom infrastructure.
Enable 5G and 6G rollouts, creating robust infrastructure.
Promote shareable telecom ducts and utility corridors for better network maintenance.
Leverage power sector assets like Optical Ground Wire (OPGW) for reliable broadband in remote areas.

Wi-Fi Access Network Interface (WANI)

Wi-Fi Access Network Interface (PM-WANI) framework is designed to promote the widespread availability of internet services by setting up public Wi-Fi hotspots across India, contributing to the vision of a Digital India and its associated benefits.
Under the PM-WANI framework, Public Data Offices (PDOs) are responsible for establishing, operating and maintaining Wi-Fi hotspots that comply with WANI standards.
PDOs can determine the technical and commercial aspects of their operations and provide internet services to users. To do so, they must collaborate with a Public Data Office Aggregator (PDOA) for service delivery.

Why Invest in Indian Telecom Sector?

World’s Second-Largest Telecom Market with Massive User Base

India has over 1.1 billion mobile subscribers, creating an unparalleled consumer base.
The telecom market is growing rapidly, especially in rural and semi-urban areas.
The scale of operations provides economies of scale for global and domestic investors.
Mobile internet usage is expected to double by 2027, driven by affordable smartphones and data.

Explosive Growth in Data Consumption and Digital Services

India has the highest data consumption per user globally, averaging over 19GB/month.
Demand for OTT, online gaming and digital payments is driving data traffic exponentially.
Telecom networks are becoming the digital spine of India’s economy, enabling services across sectors.
The government’s push for a cashless and digital economy boosts telecom infrastructure demand.

Pioneering 5G and Future-Tech Deployment

India has launched one of the fastest 5G rollouts globally, covering over 700 districts.
Investments in AI, IoT and edge computing are driving next-gen telecom innovation.
Private 5G networks are being adopted across manufacturing, logistics and healthcare sectors.
Telecom is set to play a central role in Industry 4.0 and smart infrastructure initiatives.

Strong Financial Outlook and Market Potential

Telecom is a key driver of GDP and employment, contributing significantly to national growth.
Leading operators are seeing rising ARPU (Average Revenue Per User) and improved profitability.
There is high investor interest from global giants like Google, Meta and Amazon in Indian telecom.
The digital economy is projected to contribute 20% of India’s GDP by 2027, led by telecom.

Market Reports

Telecommunication Industry in India

Quick Fact: India Telecommunication Industry

Overview: Indian Telecommunication Industry

Indian Telecommunication Industry: Major Players Outlook

Megatrends in the Telecommunication Sector

Government Initiatives

Why Invest in Indian Telecom Sector?

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