India Telecom Market Size

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).

• According to the IBEF, India has the world's second-largest telecom market. The total subscriber base, wireless subscriptions, and wired internet subscriptions have increased steadily. As of April 2022, teledensity stood at 84.88%, total broadband subscriptions increased to 788.77 million, and the overall subscriber base stood at 1.16 billion.
• In the first quarter of FY22, total wireless data usage in India increased by 16.54% quarterly to 32,397 PB. In the third quarter of FY21, 3G and 4G data usage contributed 1.78% and 97.74%, respectively, to total wireless data usage. In the same quarter, the share of 2G data use was 0.48%.
• The Department of Telecommunications (DoT) in India released the draught Telecom Bill 2022, which intends to alter the relationship between the government and the telecom industry. The main idea is to combine three acts (the Indian Telegraph Act 1885, the Indian Wireless Telegraphy Act 1933, and the Telegraph Wires (Unlawful Protection) Act 1950) into one.
• The first draught was recently used for public/stakeholder feedback. The law focuses primarily on the ease of doing business, providing sufficient infrastructure, making better use of the "valuable" spectrum, and establishing norms and procedures for litigation. Some key amendments are OTT players coming under a telecom infrastructure push, licensing regime, limiting, and (Telecom Regulatory Authority of India) TRAI.
• 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 growing demand for internet services and grab a more significant portion of the market.
• According to the announcement given by the telecom minister of India at TV9's Global Summit, 5G will be available in 20-25 towns and cities by the end of 2022, most likely by August or September.
• Every industry was affected by the COVID-19 outbreak. The telecom industry was significantly impacted, as it is 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 coronavirus'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.