India Telecommunication Market Analysis and Forecast (2024)

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India Telecommunication Market Analysis and Forecast? ›

The India Telecommunication Market value is projected to reach US$ 274 billion by the end of the forecast period, with a robust CAGR of 9.2%.

India Telecom Market Analysis

The India Telecom Market size is estimated at USD 48.61 billion in 2024, and is expected to reach USD 76.16 billion by 2029, growing at a CAGR of 9.40% during the forecast period (2024-2029). According to the IBEF, India has the world's second-largest telecom market.

' Furthermore, contributing to the expansion of India's telecommunication market is the projection that the country is poised to emerge as the world's largest smartphone market by 2025, as per GSMA. According to the latest GSMA report, the smartphone adoption rate in India was 77% in 2023.

Gross revenue of the telecom sector stood at Rs. 76,408 crore (US$ 9.3 billion) in the first quarter of FY23. The total wireless data usage in India grew at a rate of 6.65% from 37,626 PB in September 2021 to 40,126 PB in September 2022.

The telecom industry is one of the most important sectors in the Indian economy, with a 6.5% contribution to the country's GDP. In the last quarter of FY 2022-2023, the industry's gross revenue was INR 85,356 Cr ($11.38 Bn).

The India Telecommunication Market value is projected to reach US$ 274 billion by the end of the forecast period, with a robust CAGR of 9.2%.

India's number one telco, Reliance Jio, emerged as the world's larges… Indian mobile network operator, Vodafone Idea launches cloud gaming p… Indian mobile network operator, Vodafone Idea launches Vi Movies and …

Despite its global standing as the second-largest telecom market, the Indian telecom sector faces challenges that hinder its growth potential. The government is urged to revise its approach to address issues such as corruption, crony capitalism, and spectrum concentration, which stifle competition and innovation.

Predictability, one of the most prominent telecom trends in recent years that will be even bigger in 2024 is 5G as service providers continue to build out their 5G network footprints and manufacturers bring to market more 5G-capable devices.

Conclusion. In conclusion, the telecom industry faces formidable challenges, including intense competition, high spectrum costs, and regulatory complexities. The industry's success hinges on its ability to navigate these hurdles strategically.

Who controls telecom industry in India? ›

The Telecom Regulatory Authority of India (TRAI) is a regulatory body set up by the Government of India under section 3 of the Telecom Regulatory Authority of India Act, 1997. It is the regulator of the telecommunications sector in India.

India's telecommunication network is the second largest in the world by number of telephone users (both fixed and mobile phones) with over 1.1 billion subscribers as of December 2023.

The telecom industry in India has been an oligopoly – a market structure in which a few firms have majority of the market share – for the past many years.

What are the key industry drivers of the telecom industry? Digital Transformation: The surge in digital adoption is a primary driver for the telecom industry. As India progresses towards a digital economy, increased internet penetration, and the adoption of emerging technologies like 5G create new opportunities.

Changing landscape for telecom providers

While the overall market is projected to grow around 9 percent this year, telecommunications providers could only reach half that rate, at an estimated 4 to 7 percent clip.

In India, the telecommunications industry is a prime example of an oligopoly. The market is dominated by a few major players such as Airtel, Vi, and Reliance Jio. These companies have significant control over pricing and decisions within the industry, leading to intense competition and limited choices for consumers.

With this incredible growth, this sector has many attractive employment opportunities. Hiring in the telecommunications and related sectors is expected to increase by 40-45% over the next few years. Following the introduction of 5G, employment opportunities in the telecom sector will increase in 2023.