India Telecom Market Size (2024 - 2029)

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possession of wireless telegraph apparatus, and the 1950 Telegraph Wires (Unlawful Possession) Act, which was recently repealed by the Repealing and Amending Act of 2023, which received assent on December 17, 2023.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 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.