India, the world's most populous country with a population of over 1.4 billion, has enormous growth potential in the network communications market. In the past, India lagged behind others in 3G and 4G development due to a number of factors, such as a market over-crowded with competitors, weak telecommunications infrastructure, and poor policy implementation. However, the arrival of the 5G era has gradually changed the landscape of India's telecommunications market, according to DIGITIMES's latest report covering India's 5G market.
For example, competition in the telecom carrier market has returned to normal, and the average revenue per user (ARPU) has gradually increased. India is expected to become the world's second-largest 5G market in 2025, with its telecommunications infrastructure improving and application business opportunities growing.
As of the third quarter of 2024, the number of mobile users in India had reached around 930 million. Although 4G was still the mainstream technology, the number of 4G users had decreased by 64.5 million since the third quarter of 2023. On the contrary, the number of 5G users had increased significantly to above 200 million, with an annual growth rate of more than doubled, accounting for close to a quarter of the total number of mobile users. This shows the rapid development in India's 5G market in recent years, the report's figures show.
The fast growth of India's 5G market has been mainly driven by telecom operators' low-price strategies and rapid network deployments. According to statistics, as of the third quarter of 2024, India had installed over 400,000 5G base stations, lagging only China and Europe.
As India's third largest telecom operator, Vodafone Idea is about to commercialize 5G services in the first half of 2025. That means all of the top 3 telecom operators in India will provide 5G services, fueling the penetration of 5G in the country. Business opportunities for 5G smartphones and user terminals are expected to grow.
Click here to visit the report for more data and information.
Despite the rapid growth, India's 5G market faces challenges. On the one hand, India's mobile ARPU is extremely low at only about US$2 to US$3, one of the lowest levels in the world. This not only constrains the profitability of telecom operators but also affects further investment in infrastructure.
On the other hand, the rapid penetration of 5G is exacerbating the problem of insufficient bandwidth. However, the outcome of the second 5G spectrum auction did not match expectations. While the telecom operators are keen on promoting 5G services, the spectrum costs are high with a weaker-than-expected prospect of monetizing the networks.
Article edited by Jack Wu
