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2025 India Telecommunications Industry Report: The world’s second-largest telecom market with over 800 million internet users
October 16, 2025
India, the world’s fifth-largest economy and most populous country, now has the second-largest telecommunications market globally. With around 806 million internet users and a 55.3% penetration rate, the “Digital India” initiative has upgraded network infrastructure, boosting median mobile speeds by 418% between 2024 and 2025. Mobile data remains highly affordable, at just 0.16 USD per GB.
Reliance Jio and Bharti Airtel lead the market, followed by Vodafone Idea and the state-owned BSNL and MTNL. Supported by a large user base and favorable policies, India’s telecom industry is expected to grow from 53.18 billion USD in 2025 to 83.34 billion USD by 2030, at a CAGR of 9.4%, highlighting its strong growth potential.

Telecom outlook strong amid soaring data usage
India has emerged as one of the fastest-growing major economies, with GDP projected to grow 6.2% in fiscal year 2025 and 6.3% in fiscal year 2026. Against this backdrop, the telecommunications sector has kept strong momentum, with total revenue steadily reaching 3.36 trillion rupees (about 40 billion USD) in fiscal year 2024.

India’s telecom industry revenue (FY2020-2024) (in trillion INR)
Source: 2025 India Telecommunications Industry Report, Dlightek.
As of January 2025, India’s internet user base reached 806 million, ranking second globally. The country also offers some of the cheapest mobile data in the world, with 1GB costing just $0.16, far below the global average of $2.59. These affordable rates, together with faster mobile speeds, have made it easier for people to go online, driving a surge in data usage. By June 2024, monthly use per wireless user averaged 21.30GB, up from just 61.66MB in March 2014.

Internet penetration rate in India (2020-2025)
Source: 2025 India Telecommunications Industry Report, Dlightek.
Two leading operators hold market share with ongoing price competition
India’s telecommunications market includes Reliance Jio, Bharti Airtel, Vodafone Idea, BSNL, and MTNL, with BSNL and MTNL being state-owned. The market is highly concentrated, with Jio and Airtel leading in both users and revenue, forming an almost duopoly and holding a clear dominant position.

Wireless subscriber market share in India (December 2024)
Source: 2025 India Telecommunications Industry Report, Dlightek.
India’s largest operator, Jio, transformed the market with its “low-price, high-quality” strategy, reshaping the competitive landscape. The company lowered data prices from 250 rupees per GB to just 10 rupees and introduced 4GB of free daily data, rapidly attracting a substantial user base. Jio’s entry prompted other operators to respond with intensified competition in both pricing and services.
Advancing 5G and satellite communications, expanding rural connectivity.
India is accelerating the rollout of 5G networks and satellite communication services. Between 2023 and 2040, 5G is expected to contribute 455 billion USD to the country’s economy. In 2024, the government resolved spectrum allocation issues for satellite communications and approved several service providers. India is set to launch satellite communication services in 2025, further strengthening its national digital infrastructure.

Estimated economic impact of 5G on services sector in India (2023-2040) (in billion USD)
Source: 2025 India Telecommunications Industry Report, Dlightek.
Although India has the second-largest number of internet users globally, its internet penetration rate remains below the global average, highlighting a persistent digital divide. To narrow this gap, the government plans to establish rural telephone facilities in more than 62,443 uncovered villages through subsidies from the Universal Service Obligation Fund, aiming to enhance network coverage and service quality in remote and rural areas.

Tele-density in urban and rural India (September 2024)
Source: 2025 India Telecommunications Industry Report, Dlightek.
As a core sector serving more than 800 million internet users, India’s telecommunications industry is a key pillar of socio-economic development and a critical driver of data center expansion and digital service growth. Supported by technological progress, market competition, and government initiatives, the sector continues to advance along a strong growth trajectory. Looking ahead, telecommunications is set to play a pivotal role in India’s pursuit of a trillion-dollar digital economy, with significant growth potential ahead.
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