Indian Telecom Industry Analysis

As of February 2026, India has emerged as the world’s second-largest telecommunications market. The total number of telephone subscribers in India increased from 1,314.00 million in January 2026 to 1,321.31 million at the end of February 2026, reflecting a monthly growth rate of 0.56%. The wireless segment accounted for 96.4% of the total telephone subscriptions in February 2026 while, the wireline accounts for 3.6%. Rural tele-density has also improved steadily, reaching 60.02% in February 2026, reflecting the industry’s deepening penetration in smaller towns and villages.

India leads in several indicators - secured 1st rank in “Annual investment in telecommunication services”, “AI scientific publications”, “ICT services exports” and “E-commerce legislation

India’s internet subscriber base increased from 1,017.81 million in September 2025 to 1,028.61 million in December 2025, registering a quarterly growth of 1.06%. Of the total subscriber base, 983.29 million are wireless users, while 45.32 million are wired users, underscoring the continued dominance of mobile-based internet access in the country. Surging data usage has further supported this growth, with total wireless data consumption rising 9.36% sequentially to 65,009 petabytes in Q1 FY26.

By the end of 2025, India had over 400 million 5G subscribers, making it the second-largest 5G market globally, behind China and ahead of the United States, European Union, and Japan in total 5G users. Average monthly mobile data usage per smartphone is projected to reach 65 GB by 2031.

5G services have been rolled out across all States and Union Territories and are now available in 99.9% of districts nationwide. As of February 2026, approximately 5.23 lakh 5G Base Transceiver Stations (BTSs) have been installed across the country, reflecting the rapid pace of network expansion.

The Telecom Technology Development Fund (TTDF) scheme of DoT supports indigenous telecom R&D. As of February 2026, 104 projects amounting Rs. 271 Crore approved for research and development of 6G technology.

To strengthen future readiness, the government is pushing for fiberisation of telecom towers. Currently, only 36% of towers are fiberised, and plans involve deploying 12 lakh towers across the country. This is expected to significantly enhance both rural and urban network quality.

The Union Budget 2026–27 has allocated Rs. 73,990 crore (US$ 8.37 billion) to the Department of Telecommunications, with the total net outlay reaching Rs. 80,927 crore including additional funding from the Universal Service Obligation Fund (USOF), reflecting continued emphasis on rural connectivity and telecom infrastructure expansion. The Production-Linked Incentive (PLI) scheme for telecom and networking products has been allocated Rs. 1,950 crore (US$ 220.7 million) in the Union Budget 2026–27, reflecting a slight increase from Rs. 1,944 crore in the revised estimates for 2025–26.

Independent tower companies are expected to spend Rs. 21,000 crore (US$ 2.42 billion) between FY25 and FY26 to expand rural networks and strengthen service quality in urban areas.

The cumulative gross revenue of telecom service providers (TSPs) surpassed the one lakh crore mark in the December 2025 quarter, reaching Rs. 1.02 lakh crore, (US$ 12.06 billion) according to a report released by the sector regulator, Telecom Regulatory Authority of India (TRAI). As of February 2026, the wireless subscribers base stood at 1,273.31 million.

Reliance Jio Infocomm Ltd. leads the market with 519.64 million subscribers, maintaining a substantial lead over competitors. Bharti Airtel Ltd. ranks second with 364.14 million subscribers, followed by Vodafone Idea Ltd. at 129.36 million. Among public sector and regional players, Bharat Sanchar Nigam Ltd. holds 28.70 million subscribers, while Atria Convergence Technologies Ltd. (ACT) accounts for 2.38 million.

Digital adoption is accelerating rapidly. Airtel Payments Bank crossed one billion transactions in January 2025, reflecting 47% YoY growth.

In January 2026, India’s Unified Payments Interface (UPI) processed 20.39 billion transactions worth over Rs. 28.33 lakh crore (US$ 320.5 billion), reflecting its deep integration into everyday commerce. A total of 691 banks are live on the UPI platform, underscoring its broad institutional adoption.

The International Monetary Fund, in its June 2025 report on growing retail digital payments, recognised UPI as the world’s largest retail fast payment system by transaction volume. The 2024 ACI Worldwide report titled Prime Time for Real Time noted that UPI accounts for around 49% of global real time payment transaction volume. Within India, 81% by volume of total retail payment transactions are processed on UPI rails, making it the preferred mode for person to person as well as person to merchant payments.

India’s leadership in global telecom is also growing. Union Minister Jyotiraditya Scindia inaugurated Bharat Telecom 2025, positioning India as a hub for telecom exports and innovation. International collaborations are expanding as well, with the Bharat 6G Alliance joining hands with European industry organisations to co-develop future technologies.

In February 2026, a Memorandum of Cooperation (MoC) was signed between the Digital Bharat Nidhi and the Government of Andhra Pradesh to accelerate the rollout of the Amended BharatNet Programme in the state. With an approved financial support of Rs. 2,432 crore (US$ 275.2 million), the initiative aims to strengthen rural telecom infrastructure by enhancing last-mile connectivity, upgrading network resilience, and expanding broadband access across over 13,000 Gram Panchayats.

The Department of Telecommunications has been allocated Rs 73,990 crore, which is 1.4% of the total budget of the central government. The allocation to the Department in 2026-27 is estimated to increase by 39% from the revised estimate of 2025-26. The increase is mainly due to a higher capital infusion in BSNL. This is aimed to support technology upgradation and restructuring in the company. It is part of the revival plan for BSNL. The central government has been implementing this revival plan to improve the financial health of BSNL and MTNL since 2019.

India’s telecommunications sector is on a transformative growth path, powered by expanding 5G adoption, strong digital infrastructure, and supportive policy initiatives. With rising investments, growing data consumption, and deepening rural connectivity, the industry is set to drive digital inclusion and innovation across the country. Looking ahead, India’s telecom ecosystem is poised to become a global leader in next-generation connectivity, empowering economic growth, technological advancement, and inclusive development.

Note: F- Forecast, PB - Petabytes, FPI-Foreign Portfolio Investor, FDI- Foreign Direct Investment, VLR- Visitor Location Register