India Telecom Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 48.61 Billion |
| Market Size (2029) | USD 76.16 Billion |
| CAGR (2024 - 2029) | 9.40 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Telecom Market Analysis
The India Telecom Market size is estimated at USD 48.61 billion in 2024, and is expected to reach USD 76.16 billion by 2029, growing at a CAGR of 9.40% during the forecast period (2024-2029).
The telecom sector has been undergoing a remarkable surge of expansion and advancement, with the advent of 5G technology being one of the most meaningful breakthroughs in recent years. In March 2024, the Indian telecom sector experienced a notable uptick, adding 5.6 million active subscribers. This surge represents the sector's most substantial monthly growth in the past year.
- In 2024, Jio overtook Airtel in active subscriber additions, marking a significant shift after trailing for three consecutive months. This surge in active subscribers bodes well for Airtel, especially in the wireless broadband (BB) sector, where it not only bolstered its market share but also hinted at a brighter future for its average revenue per user (ARPU). The increase in active subscribers was most pronounced in B-Circles, with an increase of 4.8 million, closely followed by C-Circles, which saw a rise of 2.3 million. In contrast, metros and A-Circles experienced setbacks, with metros witnessing a drop of approximately one million active subscribers and A-Circles reporting losses of 500,000 subscribers.
- The Indian telecom sector operates under three key laws: the Indian Telegraph Act of 1885, which covers licensing and communication interception, the Indian Wireless Telegraphy Act of 1933, governing the possession of wireless telegraph apparatus, and the 1950 Telegraph Wires (Unlawful Possession) Act, which was recently repealed by the Repealing and Amending Act of 2023, which received assent on December 17, 2023. Additionally, the Telecom Regulatory Authority of India (TRAI) Act of 1997 establishes TRAI as the sector's regulator, overseeing tariff regulations. The TRAI Act also birthed the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) for dispute resolution, while the authority to issue licenses remains vested in the central government.
- The telecom sector in India is expanding due to increasing end-user applications and growth in markets like IoT, cloud, data centers, and 5G. The country is also witnessing an increase in internet consumption. Market players are developing new internet plans to fulfill the increasing demand for internet services and grab a more significant portion of the market.
- However, every industry was affected by the COVID-19 outbreak. The telecom industry was significantly impacted, as it was essential for medical, government, and private-sector commercial activities to operate seamlessly. For instance, reliable, high-speed internet access is critical in ensuring that hospitals and medical institutions access worldwide information networks and resources needed to combat the virus. Broadband access is also vital for educational institutions and enterprises to continue providing essential services.
- The COVID-19 pandemic's unexpected disruption of typical business operations prompted enterprises to operate remotely. This transition increased the demand for stronger network connectivity and internet availability, particularly in isolated or rural locations. Thus, the telecom (wireless and wireline) industry is attempting to provide better internet infrastructure to its clients. Even after the pandemic, the market is gaining traction across the country.
India Telecom Market Trends
Wireless Voice Services are Gaining Significant Momentum in the Market
- Affordable rates, expanding 3G and 4G coverage, and the advent of 5G shifting customer consumption patterns have significantly contributed to the industry's exponential expansion in recent years. For instance, in May 2024, Vodafone Idea (Vi) made a strategic move, unveiling its 'Vi Guarantee Program,' a limited-time recharge plan. This initiative, widely considered a precursor to its impending 5G launch, is tailored for 4G and 5G smartphone users. As reported by Business Standard, the plan promises an additional 130 GB of data over a year. Vi subscribers will receive 10 GB of this bonus data every 28 days for 13 cycles.
- In recent years, according to a PIB report, India has significantly narrowed the gap between its imports and exports, with a notable shift toward fulfilling most of its 5G demands through domestic production. Notably, Indian telecom companies exported telecom equipment and accessories worth INR 25,200 crore last year.
- The Department of Telecommunications (DoT) has been actively promoting Indian products on the global stage, facilitating these exports. Key players like Tejas Networks, Lekha Wireless, and VVDN, benefiting from the Production Linked Incentive (PLI) scheme, alongside Astrome, WiSig, and Signalchip, beneficiaries of the Domestic Companies Incentive Scheme (DCIS), were pivotal members of multiple MWC delegations.
- Their participation led to new deals and marked a significant entry into the Western markets, especially the United States. For instance, Astrome is spearheading the export of its E Band technology for a USD 50 billion Rural Backhaul program. WiSig's ORAN network is currently being tested at Virginia University. VVDN, with offices now established in three US locations, Vermont, Austin, and New York, has already secured prominent clients like CISCO, Mavenir, and TESLA. Additionally, 31 startups, part of the MWC delegations in the United States and Spain, collectively generated business leads worth approximately USD 100 million. All these numbers represent the flourishing nature of the telecom industry in India.
Growth of Data and Messaging Services
- In India, the demand for data and messaging services has been rising with an increase in telecom tower services across the country. India's proactive stance at the World Radio Conference secured spectrum exclusivity for its operations in airspace and sea, shielding them from IMT operations of other nations and paving the way for future 5G rollouts. In a significant move, the Telecom Secretary was appointed as co-chair of the ITU Digital Innovation Board in March 2024, bolstering India's influence in shaping global digital innovation. India recognizes the pivotal role of collaborations with partner nations and international bodies like ITU and APT in its telecom growth. Such partnerships offer access to advanced technology and patents to amplify India's contributions to bodies like ITU and bolster its SEPs.
- Under the Bharat 6G Alliance, India is forging a Memorandum of Understanding with the NextG Alliance of ATIS, United States, and the 6G Smart Networks and Services Industry Association (6G-IA) of the European Union. This collaboration aims to delve into 6G wireless technologies, foster a unified 6G vision, and fortify telecommunications with secure supply chains.
- India is set to host the World Telecommunication Standardization Assembly (WTSA) for the first time in October 2024. The event, expected to draw over 2000 delegates from 180 nations, will chart the course for the next generation of telecommunication standards.
- Smartphones are a major source of data consumption and messaging services in India. According to the GSMA, India is on the path to becoming a significant smartphone market by 2025, with approximately 1 billion devices installed. It is predicted to have 920 million unique mobile customers by 2025, including 88 million 5G connections. 5G technology is expected to add USD 450 billion to the Indian economy between 2023 and 2040.
- The government focuses on increasing broadband network services, which will increase the use of data. For instance, in February 2023, The Ministry of Communications, in a gazette notification published on February 1, announced the revision of the definition of broadband, which supersedes the previous one issued in 2013, which was made after the consideration of the TRAI. As per the new definition, "Broadband is a data connection that can support interactive services, including internet access, and has the capability of a minimum download speed of 2 Mbps to an individual subscriber from the point of presence (POP) of the service provider intending to provide broadband service."
- Furthermore, among the primary factors that lead to the segment's rise are the use of more than one device per user, high rates of replacement, and people transitioning from traditional phones to smartphones as prices drop.
India Telecom Industry Overview
The Indian telecom market is consolidated with key players, such as Reliance Jio Infocomm, Bharti Airtel, Vodafone Idea Limited, and Mahanagar Telephone Nigam Ltd (MTNL), occupying the most market shares. These players focus on deploying the 5G network and increasing network capacity across the country to remain competitive in the market.
October 2023: Ericsson, the Swedish multinational networking and telecommunications leader, launched its 'India 6G' initiative. This move sees the company, headquartered in Stockholm, establishing a specialized research team at its R&D Center in Chennai.
July 2023: DoT announced the launch of the Bharat 6G Alliance to Drive Innovation and Collaboration in Next-Generation Wireless Technology. More than 75 innovators felicitated by DoT under DCIS (Digital Communication Innovation Square) were granted INR 48 crore. 66 Startups and MSMEs were allotted a grant of INR 240.5 crore (USD 28914040) under the Telecom Technology Development Fund (TTDF) scheme.
May 2024: ACT Fibernet, India's premier fiber-focused wired broadband ISP, made a significant strategic investment in Aprecomm Private Limited, India's leading network intelligence solutions startup. This underscores ACT Fibernet's commitment to enhancing its customers' home Wi-Fi experience.
India Telecom Market Leaders
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Reliance Jio Infocomm
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Bharti Airtel
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Vodafone Idea Limited
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Bharat Sanchar Nigam Limited (BSNL)
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Mahanagar Telephone Nigam Ltd. (MTNL)
*Disclaimer: Major Players sorted in no particular order
India Telecom Market News
- April 2024: Vodafone Idea, the third-largest telecommunications company in India, is gearing up for its 5G rollout. The company has a target of having 40% of its revenue base powered by 5G technology within the next 24-30 months.
- February 2023: As per the Indian budget for 2023, the government is setting up 100 labs for developing applications using 5G services in engineering institutions. For the telecom sector, the government allocated INR 1.23-lakh crore for postal and telecom projects, including INR 1,52,937 crore capital infusion in State-run BSNL. The government has also allocated INR 2,158 crore for an optical fiber cable-based network for Defence Services and INR 715.8 crore for telecom projects in the Northeast.
- October 2023: HFCL, a domestic telecom equipment manufacturer, allocated approximately INR 200 crore toward producing 5G Fixed Wireless Access (FWA) consumer premise devices and R&D for the technology. To kickstart the production of these devices, the company is expected to establish a manufacturing plant in Delhi-NCR, investing an initial INR 100 crore from the total planned sum, with the remaining INR 100 crore dedicated to R&D.
India Telecom Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Ecosystem Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of the COVID-19 Pandemic on the Industry Ecosystem
4.5 Regulatory Landscape in India
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Penetration of 4G and Upgradation of 5G
5.1.2 Foreign Direct Investment (FDI)
5.2 Market Restraint
5.2.1 Lack of Fixed Line Penetration
5.3 Analysis of the Market based on Connectivity (Coverage to include In-depth Trend Analysis)
5.3.1 Fixed Network
5.3.1.1 Broadband (Cable Modem, Wireline Fiber, Wireline DSL, and Fixed Wi-Fi ) and Trends regarding ADSL/VDSL, FTTP/B, Cable Modem, FWA, and 5G FWA
5.3.1.2 Narrowband
5.3.2 Mobile Network
5.3.2.1 Smartphone and Mobile Penetration
5.3.2.2 Mobile Broadband
5.3.2.3 2G, 3G, 4G, and 5G Connections
5.3.2.4 Smart Home IoT and M2M Connections
5.4 Analysis of Telecom Towers (Coverage to Include In-depth Trend Analysis of Various Types of Towers, like Lattice, Guyed, Monopole, and Stealth Towers)
6. MARKET SEGMENTATION
6.1 Segmentation by Services (Coverage to include Average Revenue Per User for the Services Segment, Market size and Estimates for Each Segment (2020-2027) and in-depth Trend Analysis)
6.1.1 Voice Services
6.1.1.1 Wired
6.1.1.2 Wireless
6.1.2 Data and Messaging Services (Coverage to include Internet and Handset Data Packages and Package Discounts)
6.1.3 OTT and Pay TV Services
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Reliance Jio Infocomm
7.1.2 Bharti Airtel
7.1.3 Vodafone Idea Limited
7.1.4 Bharat Sanchar Nigam Limited (BSNL)
7.1.5 Mahanagar Telephone Nigam Ltd ( MTNL)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
India Telecom Industry Segmentation
The telecom industry comprises the sales of telecom goods and services by companies (organizations, single proprietorships, and partnerships) that supply communication hardware equipment for transmitting voice, data, text, and video. The telecoms market includes the sales of items by manufacturers like GPS equipment, cellular phones, and switching equipment.
The telecom industry in India is segmented by services (voice services (wired and wireless), data and messaging services, and OTT and pay TV services).
The market sizes and forecasts are provided in value (USD) for all the above segments.
| Segmentation by Services (Coverage to include Average Revenue Per User for the Services Segment, Market size and Estimates for Each Segment (2020-2027) and in-depth Trend Analysis) | ||||
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| Data and Messaging Services (Coverage to include Internet and Handset Data Packages and Package Discounts) | ||||
| OTT and Pay TV Services |
India Telecom Market Research Faqs
How big is the India Telecom Market?
The India Telecom Market size is expected to reach USD 48.61 billion in 2024 and grow at a CAGR of 9.40% to reach USD 76.16 billion by 2029.
What is the current India Telecom Market size?
In 2024, the India Telecom Market size is expected to reach USD 48.61 billion.
Who are the key players in India Telecom Market?
Reliance Jio Infocomm, Bharti Airtel, Vodafone Idea Limited, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL) are the major companies operating in the India Telecom Market.
What years does this India Telecom Market cover, and what was the market size in 2023?
In 2023, the India Telecom Market size was estimated at USD 44.04 billion. The report covers the India Telecom Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Telecom Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the India Telecom Industry growth?
Major factors driving the growth of India Telecom Industry include a) Surge in demand for high-speed internet b) Government initiatives for digitalization c) Expansion of 4G and 5G networks across the country
What challenges does the India Telecom Market face?
Major challenges faced by the Telecom Industry in India are a) Regulatory hurdles b) High spectrum fees c) Need for significant investment in infrastructure to support the growing demand
India Telecom Industry Report
The telecom industry in India, the world's second-largest telecommunications market, is experiencing significant market growth driven by increased smartphone usage and reduced data costs. This expansion is expected to bring in many new internet users, supported by favorable government policies and liberalized Foreign Direct Investment norms. The telecommunication industry in India is a crucial employment generator, thriving across wireless, wireline, and internet services segments, with wireless services leading the subscriber count. Both urban and rural markets are being catered to with specialized services amidst a competitive landscape marked by strategic alliances and technological advancements such as 4G and the anticipated 5G upgrades.
The government's National Broadband Mission aims to enhance broadband speeds and connectivity, reinforcing the sector's commitment to improving digital infrastructure. This mission aligns with the industry's outlook and market predictions, promising a robust future for India's telecom sector. Comprehensive industry reports and market reports provide detailed insights into the market size, industry analysis, and market segmentation, offering valuable information on market value and market trends.
Industry research highlights the importance of industry trends and industry statistics in understanding the sector's dynamics. Market data and market forecast are essential for anticipating future developments, while industry information and market overview provide a clear picture of current conditions. The telecom market's competitive nature is evident through the presence of market leaders and their strategic moves, contributing to the overall market review.
For a detailed industry profile, Mordor Intelligence™ Industry Reports offer an in-depth analysis, including market share, industry growth, and growth rate forecasts. These reports are available as a report pdf download, providing easy access to critical information for stakeholders. The market's structure and segmentation reveal the diverse range of services offered, catering to different consumer needs and preferences.
In summary, the telecom industry in India is on a dynamic growth path, supported by technological advancements, strategic alliances, and government initiatives. The industry's size and value continue to expand, driven by increasing demand for wireless and data services. Comprehensive industry reports and market research are essential tools for understanding the sector's trajectory and making informed decisions.
