Subash Vasudevan, Chief Business Officer and Co-founder, iBUS Network and Infrastructure
Views of Subash Vasudevan, Chief Business Officer and Co-founder, iBUS Network and Infrastructure
What telecom operator do you use today? Has it been the same for years, or have you switched for better service, speed, or affordability? The telecom sector in India has seen massive evolution, transforming from a luxury to a necessity in modern life. From enabling daily communication to supporting fintech revolutions and immersive 5G-powered experiences, telecom networks are now the backbone of India’s digital economy. As we look at 2024, the sector’s performance has been nothing short of transformative, laying the groundwork for continued growth in the coming year.
Five times the speed: The backbone of connectivity
By the close of 2024, 5G networks covered over 70 per cent of India’s population, with a remarkable addition of 100 million new users during the year, bringing the total to 320 million users. This widespread adoption not only reflects India’s appetite for cutting-edge technology but also highlights persistent challenges in bridging the digital divide in rural and underserved areas.
Despite these hurdles, the rollout of 5G contributed Rs 1.2 trillion in effective revenue to the telecom sector, showcasing its potential as a key economic driver. However, the real measure of success lies in ensuring that this connectivity reaches every corner of the country, laying the groundwork for universal adoption and even the eventual transition to 6G technologies.
Powering the nation with better telecom tower development
India’s telecom infrastructure made significant strides in 2024, with 850,000 towers, over 70 per cent of which are fiberised to support the high-speed demands of 5G. A Rs 500 billion capital expenditure (capex) investment focused on expanding rural connectivity and strengthening 5G backhaul systems has propelled this growth.
This robust tower network is not just about speed but also reliability. With real-time applications requiring uninterrupted service, fiberisation has become the backbone for seamless user experiences across diverse sectors, including education, healthcare, and retail.
The PLI scheme and industry consolidation
India’s telecom manufacturing sector witnessed a Rs 60 billion investment under the production-linked incentive (PLI) scheme, furthering the vision of the “Make in India” initiative. Spectrum pricing rationalisation and incentives for infrastructure sharing have fostered stability and encouraged innovation.
Industry consolidation has also been a stabilising factor, with the top telecom players accounting for 93 per cent of the market share. This concentration has helped streamline pricing strategies while maintaining competitive dynamics, as reflected in the rise of average revenue per user (ARPU) to Rs 220 in 2024, compared to Rs 190 in 2023.
Telecom sector’s role in India’s fintech boom
India’s unified payments interface (UPI) revolution owes much of its success to the telecom industry. With over 1.2 billion mobile connections and 600 million smartphone users, affordable data plans and robust networks have enabled UPI transactions to surpass Rs 15 trillion monthly in 2024.
This synergy between fintech and telecom has transformed how businesses operate and consumers transact, bridging financial gaps and driving inclusivity across rural and urban demographics alike.
Outlook for 2025: A future-ready telecom sector
The trajectory set in 2024 positions the telecom industry for a promising 2025. 450 million new 5G users are projected to join the network, with ARPU expected to cross Rs 250. The early-stage investment of Rs 50 billion in 6G research, in public-private partnership, marks India’s ambition to lead the next technological frontier.
Private networks are set to grow by 40 per cent, driven by enterprise adoption in industries like healthcare and manufacturing. Moreover, investments in more than 500 micro-edge data centers will support real-time applications, catering to the demands of artificial intelligence (AI)-powered innovations.
Automation and AI will also play pivotal roles in improving operational efficiency. With AI-driven predictive maintenance reducing network downtime by 15 per cent and chatbots handling 60 per cent of customer queries, the sector is poised for cost savings of Rs 15 billion, enhancing the overall quality of service.
Balancing innovation with affordability
As we celebrate the milestones of 2024—be it the widespread rollout of 5G, a booming fintech revolution powered by mobile connectivity, or the steady rise in ARPU—there is much more to be achieved. The next frontier is about ensuring that this growth is inclusive, bridging the digital divide that still separates rural and urban India. Looking ahead to 2025, the opportunities are immense. From the promising potential of private 5G networks transforming industries like healthcare and manufacturing, to AI-powered data centers redefining efficiency, the roadmap is clear. However, growth must remain purposeful. Strategic investments in 6G research, fostering affordability for consumers, and policy measures supporting equitable access will be the catalysts for success.
So, what does this mean for us? For consumers, it is about experiencing seamless connectivity and smarter digital services. For businesses, it is about leveraging cutting-edge technology to innovate and thrive. And for India as a whole, it is about stepping confidently into the future, where telecom is not just an industry, it is a cornerstone of the country’s ambition to become a $ 5 trillion economy. As we stand on the brink of 2025, one question remains: Are we ready to harness the full potential of India’s telecom revolution, ensuring it uplifts every individual, community, and enterprise? The answer lies in our collective efforts to make this vision a reality.
