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As of 2019, India holds the world’s highest data usage per smartphone at an average of 9.8 GB per month. It is expected to double to 18 GB by 2024.

Indian Telecom Industry Analysis

    Last updated on Oct, 21 2020

India is the world's second-largest telecommunications market. The telecom market can be split into three segments – wireless, wireline and internet services. Total subscriber base in the country stood at 1,163.67 million as of May 31, 2020. The wireless market segment accounted for 98.28% of the total subscriber base as of March 2020. Rural subscribers comprised 44.27% of the total telephone subscribers as of March 2020.

India is also the second largest country in terms of internet subscribers. As of 2019, India holds the world’s highest data usage per smartphone, averaging 9.8 GB per month. It is expected to double to 18 GB by 2024. App downloads in the country increased from 12.07 billion in 2017 to 19 billion in 2019 and is expected to reach 37.21 billion by 2022F. Total wireless data usage in India grew 5.5% quarterly to 20,899,931 TB in Q3FY20. The contribution of 3G and 4G data usage in total volume of wireless data usage was 4.47% and 94.82%, respectively, in Q3FY20. Share of 2G data usage remained 0.71% during the quarter.

Gross revenue of the telecom sector stood at Rs 185,291 crore (US$ 26.51 billion) in FY20 (April–December 2019). Strong policy support from the Government has been crucial to the sector’s development. Foreign Direct Investment (FDI) cap in the telecom sector has been increased to 100% from 74%. FDI inflow in the telecom sector totalled US$ 37.27 billion during April 2000–March 2020.  

The Government of India, through its National Digital Communications Policy, foresee investment worth US$ 100 billion in the telecommunications sector by 2022.

 

F- Forecast

Indian Telecommunications Industry Report (September, 2020)
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Click to access the Telecommunications Industry Archived Report

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