India’s telecommunications industry demonstrated remarkable resilience and growth in financial year 2024-25, its strongest performance in recent years, as per the Telecom Regulatory Authority of India’s (TRAI’s) latest performance indicator report. The industry has successfully navigated several challenges while maintaining its upward trajectory.
According to the report, the sector’s financial health improved significantly, with gross revenue rising by 10.72 per cent from Rs 3.36 trillion in 2023-24 to Rs 3.72 trillion in 2024-25. Notably, adjusted gross revenue (AGR) recorded even higher growth, surging 12.02 per cent to Rs 3.03 billion from Rs 2.7 billion in the previous year. This higher AGR growth compared to gross revenue indicates improved operational efficiency across the industry.
The four-year trend data underscores a sustained recovery. Between 2021-22 and 2024-25, gross revenue grew from Rs 2.78 trillion to Rs 3.72 trillion, while AGR rose from Rs 2.18 trillion to Rs 3.03 trillion, reflecting steady gains following the sector’s consolidation phase.
Government collections benefit from growth
The robust revenue growth translated into higher government collections. Licence fees rose by 12.02 per cent to Rs 242.42 billion, while spectrum usage charges increased by 13.02 per cent to Rs 38.07 billion. Notably, pass-through charges (GR-AGR) decreased by 1.31 per cent to Rs 528.79 billion, reducing their share in gross revenue from 15.94 per cent to 14.21 per cent, indicating improved cost management by operators.
Access services drive sector performance
Access services, telecom services such as voice or non-voice messages transmitted through wired or wireless networks, dominate the revenue mix, contributing 83.65 per cent of the total AGR in 2024-25. The segment recorded strong growth – gross revenue increased by 13.77 per cent, applicable gross revenue by 12.88 per cent and AGR by 15.52 per cent. The access services segment’s licence fees and spectrum charges grew by 15.57 per cent and 13.11 per cent respectively, underlining its critical role as the sector’s primary growth engine.
Meanwhile, internet service providers showed strong momentum with 15.12 per cent gross revenue growth and 13.79 per cent AGR growth. However, traditional services faced headwinds. National long-distance services declined 11.07 per cent in gross revenue and 10.7 per cent in AGR, while international long-distance services dropped 6.42 per cent in gross revenue and 13.98 per cent in AGR.
Competitive landscape intensifies
The access services market is highly concentrated. In 2024-25, Reliance Jio maintained its leadership position with an AGR of Rs 1.11 trillion, representing a 13.98 per cent year-on-year growth. However, Bharti Airtel emerged as the fastest growing major player, with AGR surging 23.23 per cent to Rs 992.4 billion, narrowing the gap with Jio significantly.
Vodafone Idea Limited showed signs of stabilisation with a modest 3.77 per cent growth to Rs 307.2 billion, while Bharat Sanchar Nigam Limited (BSNL) recorded a 5.17 per cent growth to Rs 84.35 billion. The increased share of the top three private players demonstrates the market’s consolidation, with these operators now controlling the majority of market revenue.
Private sector dominance continues
The private sector’s dominance in the telecom space has further strengthened, with private companies accounting for Rs 2.83 trillion of the total AGR compared to Rs 191.68 billion for PSUs. The PSU market share declined to 6.33 per cent in 2024-25 from 6.64 per cent in the previous year, continuing a multi-year decline from 7.35 per cent in 2021-22.
This trend reflects the private sector’s superior operational efficiency, sustained network investments and greater service innovation capabilities in an increasingly competitive environment.
Geographic distribution reveals growth hotspots
The category-wise revenue distribution shows that Circle B regions led with 38.1 per cent of the total access AGR, followed by Circle A at 36.72 per cent. Circle B recorded the strongest growth at 17.88 per cent, while Circle A grew 14.87 per cent. Circle C regions, representing smaller markets, achieved an impressive 17.49 per cent growth, highlighting strong rural and semi-urban adoption. Metro areas, accounting for 9.74 per cent of revenue, registered a more modest growth of 6.59 per cent.
Outlook and implications
Overall growth across multiple performance metrics, combined with improving operational efficiency, positions India’s telecom sector for continued expansion. Operators have successfully optimised their cost structures while investing in network expansion and service enhancement, resulting in sustained revenue growth and a decrease in pass-through charges as a percentage of gross revenue.
The sector’s financial performance in financial year 2025 demonstrates its resilience. Meanwhile, regulatory reforms encouraged healthy competition while ensuring sustainable growth for all stakeholders.
Shashwat Singh
