India has seen an extraordinary surge in internet usage and connectivity shaping the nation’s telecom sector.
In March 2024, the average monthly data consumption per user jumped to 20.27GB compared to 0.27 GB in 2014-15, according to the latest report by Telecom Regulatory Authority of India.
That is a phenomenal growth at a compound annual growth rate of 54% which reflects the fast pace of India’s digital evolution. The internet subscriber base now stands at 954.4 million, with 556.05 million users from urban areas and 398.35 million from rural areas.
This has brought the tele-density in India to a very impressive 85.7%. While 4G still leads the market with an 82.7% share, the 5G adoption is increasing steadily and now makes up 16.9% of the total subscriber base.
Affordable Data Plans and Smartphone Proliferation
India’s internet boom has been greatly aided by reasonably priced data plans. In actuality, India has some of the lowest data costs in the world, with wireless data rates ranging from ₹8.7 to ₹10.4 per gigabyte. The internet is now accessible to millions of people in both urban and rural areas thanks to this pricing strategy, which has truly democratized internet access.
Smartphones are also very important. With 46.5 percent penetration rates and an estimated 660 million smartphone users, these devices have become a true gateway to the new digital world. Smartphones are altering how Indians view the internet, whether it be through social media or e-commerce.
Millions of people are now able to connect to the digital ecosystem thanks to the aggressive data pricing and low cost of handsets. Vinod Subramanian, Vice President of Technology and Telecom at Invest India, noted that smartphones are now essential for everything from online shopping to content creation.
The increasing use of streaming, gaming, and other OTT-based activities has led to a sharp rise in the demand for digital services. To handle the increased data traffic, the telecom companies are making significant investments in network expansion.
Reliance Jio is the market leader, accounting for 50.4% of internet subscribers, followed by Bharti Airtel at 30.47% and Vodafone Idea at 14.39%. This competition has spurred innovation, with providers offering bundled services, including free OTT subscriptions, to attract customers.
In fact, the full deployment of 5G happened last October 2022 with internet adoption, increasing and accelerating with faster speeds, lower latency, and reliable connectivity for sectors such as smart cities, AI, IoT, and cloud computing to change the way forward in a sustainable tech-driven future.
Challenges and the Road Ahead
Despite this progress, many challenges remain. Bridging the rural-urban divide is key to ensuring inclusive growth. Moreover, the rising demand for internet services has also raised concerns about data privacy and security. Telecom companies must implement robust security measures to safeguard user data and maintain trust.
India’s journey from 2G to 5G has been a testament to our commitment to bridging the digital divide and becoming a global technology leader. Now, it is 6G, which we are ready to design, develop, and implement,” said Atul Kumar Chaudhary, Secretary, TRAI.
To combat the growing threat of cyberattacks, experts emphasize the necessity of strict encryption standards and data protection laws.
The telecom industry in India continues to show this enormous and promising growth. With all of the initiatives, government regulations, and technological advancements, it continues to be a promising industry.
India is becoming the preferred location for international investors looking for opportunities in the telecom industry as a result of its consistent construction of robust digital infrastructures.
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