In order to meet the unprecedented demand for high speed and reliable connectivity driven by the growing adoption of data-intensive applications, there is a pressing need to expand and modernise the country’s telecommunications infrastructure. Traditional systems, including macro cell towers, microwave links and legacy copper-based networks, are no longer sufficient to handle the scale, capacity and performance requirements of the evolving digital ecosystem. These legacy assets are now being complemented by advanced digital infrastructure solutions such as high-capacity fibre networks, public and enterprise Wi-Fi, fixed wireless access, and dense layers of small cells for targeted coverage enhancement. Moreover, smart city infrastructure is being strengthened through the deployment of smart towers, smart poles and electric vehicle (EV) charging stations, which integrate multiple communications technologies with urban services in shared physical structures.
Going forward, as the roll-out of 5G nears saturation and the country prepares for 6G, extensive network densification supported by resilient IP backbones, cloud-based architectures and intelligent systems powered by neural networks will be essential to meet the performance, scalability and reliability demands of next-generation digital ecosystems.
A look at the digital infrastructure deployment trends in India, key challenges and the future prospects for expansion…
Rapid 5G roll-out amidst challenges of network densification and sustainable returns
India has witnessed one of the fastest 5G roll-outs in the world. Since the launch of services in October 2022, 5G has been deployed across all states and union territories. The infrastructure has expanded rapidly, with the country now hosting over 0.46 million 5G base transceiver stations. The adoption of 5G is being driven by the increased availability of affordable 5G-enabled smartphones, low tariffs, the uptake of next-generation technologies and a rapidly evolving digital ecosystem. By the end of March 2025, India’s 5G subscriber base had grown to over 250 million. Operators such as Reliance Jio Infocomm Limited and Bharti Airtel have also introduced fixed wireless access using 5G to improve broadband penetration in underserved regions, providing an effective solution for last-mile connectivity in areas where laying fibre cables is challenging.
The roll-out of 5G has also created the need for extensive network densification to meet its performance requirements of ultra-low latency, high throughput and the capacity to support massive device connectivity. Unlike previous generations, which relied primarily on macro cell towers, 5G has shorter signal propagation ranges and is more susceptible to obstacles. This necessitates a layered network architecture comprising macro towers, a dense grid of small cells, distributed antenna systems and in-building solutions, supported by a robust fibre backhaul. In India, densification is being driven through coordinated deployments of fibre, small cells and smart poles. The monetisation of 5G services also remains a formidable challenge. Currently, operators offer unlimited 5G services at extremely low tariffs, struggling to introduce differentiated pricing models. Furthermore, regulatory imbalances in content distribution add to the difficulty of generating revenue from 5G-based applications.
Fibre backbone expands while cost and RoW challenges remain
Optical fibre cable (OFC), with its virtually unlimited capacity, provides the ideal backbone for running bandwidth-intensive applications. In India, fibre infrastructure has advanced considerably in recent years, with around 4 million rkm of OFC deployed. The pace of fibre deployment accelerated significantly after the launch of 5G services, averaging about 0.1 million rkm per month compared to nearly 0.017 million rkm per month in the pre-5G years. The government’s BharatNet project, which aims to provide high speed broadband connectivity in rural areas, has also witnessed substantial progress. As of July 2025, over 214,325 gram panchayats have been equipped with broadband infrastructure, and around 0.7 million km of OFC has been laid under the project. Tower fiberisation has also increased significantly, with fibre penetration at telecom towers reaching about 38 per cent, though it remains below the government’s target of 70 per cent.
A key factor driving the surge in OFC demand is the growing proliferation of fibre-to-the-x (FTTx) networks. FTTx is a generic term for any broadband network architecture that uses optical fibre to provide last-mile telecommunications to premises (FTTP), homes (FTTH), buildings (FTTB) and more. Through FTTx, operators can deliver services directly to end-user locations from the switching equipment, thereby avoiding connectivity issues at the last mile.
Despite substantial progress in expanding the country’s fibre infrastructure, the roll-out continues to face challenges with right-of-way (RoW) permissions and other regulatory approvals, particularly in urban areas, while high capital expenditure remains a persistent concern.
Wi-Fi sees sustained growth on the back of government and industry initiatives
As mobile networks become increasingly congested, Wi-Fi offers a cost-effective alternative to mobile broadband as it uses unlicensed spectrum, relies on cheaper equipment and is easily scalable for growing user needs. It also supports next-generation technologies such as IoT by enabling seamless communication between sensors and smart devices. The Indian government is actively promoting the establishment of public Wi-Fi hotspots through the Prime Minister Wi-Fi Access Network Interface (PM-WANI) initiative. This scheme encourages public data office aggregators to deploy public Wi-Fi networks, enabling them to provide public Wi-Fi services through public data offices. As of end June 2025, around 0.3 million Wi-Fi hotspots have been installed under the PM-WANI scheme. Meanwhile, private telecom players are actively involved in deploying Wi-Fi networks to meet the surging demand for high speed internet connectivity, serving both residential and enterprise consumers. However, as the Wi-Fi market continues to grow, it faces pressing challenges such as security risks, spectrum limitations and inadequate fibre backhaul, all of which could undermine reliable connectivity and slow its further expansion.
Small cells, big impact
Despite the proliferation of high speed 5G services, reliable indoor connectivity remains a key bottleneck, especially in densely populated urban areas. To this end, small cells have emerged as a promising alternative for the provision of telecom connectivity in zero-coverage areas or areas that are weakly networked. Small cells are low-powered radio access nodes with a network range between 10 metres and 2 km, and can work with either licensed or unlicensed spectrum. Small cells offer several advantages over macro cells, such as improved network coverage, increased capacity in densely populated urban areas and extended battery life of handsets. While low-power small cells are well suited for indoor applications, high-power small cells are gaining ground in outdoor applications. All major telecom operators in India have announced massive small cell deployment plans in order to improve both indoor and outdoor network coverage. On the policy front, both the Indian government and the Telecom Regulatory Authority of India have initiated several measures to promote the use of street furniture for small cell deployment.
Smart towers, smart poles and EV charging stations power smart city infrastructure
The convergence of digital technologies is transforming India’s urban infrastructure through the widespread deployment of smart towers and smart poles, which serve as multifunctional assets within the communications network. Smart towers are advanced telecom structures designed to host a range of equipment beyond traditional macro antennas, including small cells, Wi-Fi access points, microwave units and fibre termination points. They often incorporate energy management systems, remote monitoring capabilities and space for co-location of equipment from multiple operators, thereby maximising utilisation and reducing operational costs. Meanwhile, smart poles build on the design of conventional street lighting or utility poles, enhancing them to accommodate telecommunications and smart city functions. In addition to hosting small cells and Wi-Fi radios, they can integrate CCTV cameras, environmental and traffic sensors, digital signage and energy-efficient LED lighting systems.
An emerging extension of this multifunctional approach is the integration of EV charging stations with smart poles and smart towers. With the rising adoption of electric mobility in India, combining charging facilities with existing telecom and utility infrastructure reduces the need for separate installations, optimises space usage and lowers deployment costs. Moreover, with dedicated power supply lines and network connectivity already in place, these sites can support real-time monitoring of charger availability, digital payment systems and integration with smart grid operations.
Building the next layer of digital infrastructure
India’s digital infrastructure has expanded rapidly with the growth of fibre networks, Wi-Fi, small cells and smart city deployments, but sustaining this momentum will require the next layer of innovation. Future networks will increasingly depend on robust internet protocol backbones that act as the universal transport layer for data, ensuring speed and reliability across services. At the same time, cloud-based architectures will enable greater agility and cost efficiency by virtualising network functions and bringing computing power closer to end-users through edge deployments. Further, neural network infrastructure will help embed artificial intelligence into operations, enabling functions such as predictive maintenance, anomaly detection and spectrum optimisation.
Going forward, focusing on streamlining regulatory processes, strengthening public-private collaboration and investing in emerging areas such as satellite communications will be essential to ensuring that India’s digital landscape can support future technological advancements and ever-growing network demands.
