India’s telecom and pay-TV services sector is poised for significant growth, with revenue projected to rise from $44.9 billion in 2024 to $50.7 billion in 2029. This growth, at a compound annual rate of 2.5 percent, is driven primarily by mobile data and fixed broadband services, according to GlobalData’s India Telecom Operators Country Intelligence Report.
Mobile data leads the charge in telecom revenue
Mobile data service revenues are expected to grow at a robust 5.5 percent compound annual growth rate (CAGR) during the forecast period. This growth is attributed to the increasing adoption of smartphones, a rise in mobile internet subscriptions, and surging mobile data consumption.
The report highlights that 5G services accounted for 15 percent of mobile subscriptions in 2024, a figure projected to soar to 61.8 percent by 2029. This surge is driven by continuous network expansions by telecom operators. For example, Airtel’s 5G network now covers over 140,000 villages as of September 2024.
In contrast, mobile voice service revenues are set to decline as more users transition to over-the-top (OTT) communication platforms, leading to a drop in average revenue per user (ARPU).
Fixed broadband on a steady growth path
Fixed broadband service revenues are forecast to grow at a CAGR of 6.2 percent between 2024 and 2029. The increasing adoption of fibre-to-the-home/building (FTTH/B) connections and the government’s ambitious BharatNet initiative are key drivers.
Phase III of the BharatNet project, valued at Rs 650 billion ($7.8 billion), is set to enhance fibre broadband connectivity in rural areas. This aligns with the growing demand for high-speed internet, driven by government efforts to expand network infrastructure nationwide.
Shift in the mobile technology landscape
While 4G remains dominant, accounting for 68.9 percent of mobile subscriptions in 2024, its share is expected to drop to 32.1 percent by 2029. This decline reflects the mass migration of subscribers to 5G services, which offer higher speeds and better connectivity.
With ongoing 5G expansion, government-led broadband initiatives, and rising consumer demand for high-speed internet, India’s telecom sector is on track for sustained growth. The evolving technology landscape and strategic investments in infrastructure promise a bright future for the industry.
