The telecom sector has witnessed significant progress over the past year. The key developments include the introduction of the draft National Telecom Policy, 2025 and the National Broadband Mission (NBM) 2.0, deeper 5G penetration and tariff corrections that improved the sector’s financial performance. Other noteworthy milestones were the operationalisation of the historic Telecommunications Act, 2023, covering telecom cybersecurity and the enhanced scope of Digital Bharat Nidhi; the finalisation of BharatNet Phase III; implementation of right-of-way (RoW) rules (critical for achieving high speed connectivity), expansion of high-capacity fibre networks; and opening of the delicensed lower 6 GHz band. Meanwhile, the Telecom Regulatory Authority of India’s Manual for Rating of Properties for Digital Connectivity, effective October 25, 2024, is a key step towards integrating digital connectivity provisions into building standards. Satcom also witnessed strong growth, with new players and technologies entering the market.
Telcos have moved well beyond basic connectivity. They are now rebranding themselves as “digital infracos”, enabling multiple forms of connectivity, from end-to-end 5G/internet of things (IoT) propositions to business-to-business-to-everything (B2B2x) platforms, while investing significantly in artificial intelligence (AI) and generative AI, subsea cable systems, satellite-based connectivity partnerships and the build-out of data centres to support compute-intensive workloads. Indian telcos are now serving approximately 1.2 billion subscribers as of July 2025, transforming the market and reshaping consumer behaviour. India has become the second-largest market globally (Economic Survey of India, 2025), and operators including Reliance Jio, Bharti Airtel, Vodafone Idea Limited (Vi) and Bharat Sanchar Nigam Limited (BSNL) are working to sustain this position and build a brighter future.
An overview of the country’s telecommunications sector…
Current status
With 0.48 million 5G base transceiver stations now covering 779 out of 783 districts, India has achieved unprecedented deployment that positions it among global 5G leaders. The sector’s foundation – 0.83 million towers serving 1.2 billion subscribers, with an urban teledensity of 131.76 per cent – demonstrates remarkable scale. But the real achievement lies in rural penetration. 4G coverage has reached 99 per cent across 0.6 million villages, with 68,151 villages already equipped with 5G infrastructure. BharatNet’s success in connecting 218,347 gram panchayats through 0.42 million route km of fibre has reinforced the converged infrastructure approach. Complementing this are 104,574 Wi-Fi hotspots, strengthening last-mile connectivity, while 0.12 million fibre-to-the-home (FTTH) connections ensure sustainable rural digital access.
Regulatory execution and government moves
The Telecommunications (Right of Way) Rules, 2024 mark a crucial regulatory milestone. Effective January 1, 2025, these rules replace fragmented frameworks with unified procedures, simplifying infrastructure deployment while maintaining security standards. The Telecommunications (Telecom Cyber Security) Rules, 2024 establish robust data protection mechanisms essential for national digital security. Structural reforms have gained momentum through multiple policy initiatives. The unified e-service portal for centralised RoW permissions creates a collaborative institutional mechanism, uniting the central and state governments, local bodies and service providers through streamlined interfaces. Maharashtra has already implemented this by directing its local bodies to grant complete exemptions for both existing and future installations, paving the way for faster and more widespread digital infrastructure deployment.
Similarly, the Supreme Court’s historic judgement classifying telecom towers as movable property and granting them input tax credit eligibility, has transformed digital infrastructure economics. Strategic dialogues has strengthened through stakeholder advisory committee meetings with infrastructure providers and internet service providers, initiated by the communications ministry.
The draft National Telecom Policy, 2025 envisions India’s transformation into a digitally empowered nation and global telecom technology leader by 2030. Meanwhile, NBM 2.0 aims to propel high-speed broadband and meaningful connectivity for all, with a strong focus on sustainability.
Earlier, in 2022, the Department of Telecommunications (DoT) had issued captive non-public network (CNPN) guidelines to operationalise private network use cases. In July 2025, DoT launched a module on the Saral Sanchar portal to gauge fresh spectrum demand, and identify suitable bands for the direct assignment of spectrum for CNPN services.
Additionally, the Central Electricity Authority’s (CEA) Fifth Amendment Regulations, 2025 envisage smart meter integration for entities with open access at voltage levels not exceeding 650 V, standardising metering requirements and supporting telecom infrastructure’s energy management capabilities.
Challenges that remain
India’s digital infrastructure remains fragile at the last mile. While optical networks have expanded, bringing high speed fibre into homes and business premises remains difficult in many areas. The bulk of India’s 984 million broadband subscriptions are on wireless networks, with only about 45 million on wireline, underscoring the relatively low penetration of truly high speed FTTH . Last-mile fibre roll-outs are constrained by high deployment costs and RoW hurdles in cities, compounded by the vast scale and dispersion of rural connectivity needs.
Translating the new RoW policy into consistent on-ground execution is equally critical. With uniform RoW Rules, 2024 now set to take effect, the test lies in ensuring that every state and municipal authority adheres to them. Any shortfall in cooperation at the state or city level could weaken the intended impact of these reforms.
Quality of service also needs to improve as data consumption soars. Call drops and uneven data speeds are frequently reported in congested urban centres. Indoor coverage is a particular pain point, with signals weakening in high-rise buildings or deep indoors, especially on higher frequency 4G/5G bands.
5G monetisation
5G monetisation has so far been suboptimal, contributing to the poor financial performance of operators. One avenue for 5G monetisation that is becoming clear now is fixed wireless access (FWA) broadband on 5G networks. The adoption of 5G is sizeable but not high – about 300 million subscribers, or only 26 per cent of total mobile subscribers by March 2025 – two-and-a-half years after its launch. The lack of use cases has been a key issue. 5G FWA is increasingly viewed as a strong use case in difficult terrain where deploying fibre could be challenging. However, FWA can only be an interim solution to reach high-quality connectivity. Robust, resilient and reliable quality broadband for an advanced digital economy can only be achieved with fibre-based fixed broadband.
By 2026, 5G subscriptions are expected to reach 350 million, representing 27 per cent of mobile subscriptions, with a potential GDP contribution of $180 billion by 2030. The opportunity clearly transcends traditional revenue models.
Key growth drivers
Satcom will complement terrestrial networks rather than compete with them, given capacity limitations and the lower cost per GB offered by terrestrial networks on 5G. India’s vast and diverse geography presents significant opportunities for satcom, particularly in rural and remote regions. Satcom can help bridge this connectivity gap by providing internet access to remote areas and facilitating essential services such as education, healthcare and agriculture.
Meanwhile, the demand for data continues to rise, and the trend will persist due to greater supply. While 6G could significantly increase network capacity, it will be important to time its roll-out in a way that large investments made in 5G are well utilised before the introduction of 6G. Some of the most promising future technologies are AI and AI-enhanced networks, blockchain technology, quantum technology, 6G, Li-Fi, free-space optical communications and Wi-Fi 8. While 5G continues to expand, India is already positioning itself as a global leader in 6G, targeting 10 per cent of global 6G patents and building the supporting innovation ecosystem. CNPN is critical for enterprises and industries to enhance India’s global competitiveness, while modern Wi-Fi, PM-WANI-based public Wi-Fi and fibre-to-the-x plus Wi-Fi combinations will underpin the next phase.
Single-tower multiple-use also represents a transformative trend reshaping telecom infrastructure into comprehensive utility platforms that integrate distributed broadcasting networks, renewable energy ecosystems, mobility service infrastructure and public safety systems. The evolution of green energy open access, particularly amendments allowing load aggregation, enable telcos to combine multiple low-consumption sites, addressing barriers to renewable energy adoption.
A key factor to watch will be whether the market moves towards greater consolidation or competition increases. Weak growth in mobile virtual network operators and the limited expansion of fixed broadband, particularly fibre, remain concerns. Regulation plays a key role in enabling cable operators, and providing clarity on satcom and over-the-top services. Meanwhile, progress on sustainability will depend largely on economics.
The way forward
Over the coming years, the focus should shift from building 5G coverage to monetising it. This means completing the roll-out across all towns and key villages while keeping 4G strong for most users.
Tariffs and ARPUs are expected to rise gradually, supported by clear value additions to minimise churn. The presence of a stable third operator remains important: Vi needs fresh capital and a focused plan, while BSNL must complete its 4G upgrade and prepare for 5G. Operators should leverage the new Telecom Act and the RoW Rules, 2024 to accelerate builds, tap production-linked incentives for local sourcing and draw on universal service funds where feasible. At the same time, the sector needs more tower fiberisation, more FTTH in cities, and steady progress on BharatNet’s last-mile connectivity.
Future growth must extend beyond basic mobile to enterprise and platforms. CNPN should move from pilots to signed, multi year contracts in factories, utilities, campuses and logistics; IoT should scale in smart meters, transport and surveillance; and operators should deepen cloud, security and communication-platform services. They must also keep an eye on the future, prioritising 6G research, higher-band spectrum, and tighter satcom integration for remote and resilient links. Telcos will benefit from the growth of data centres, content delivery networks and internet exchange points in the Indian market, which will improve the quality of service.
India’s telecom industry has scale. The next step is depth: better networks, stronger finances and new services for users. With supportive policy and disciplined execution, the sector can sustain momentum, and expand its impact on the economy and digital inclusion.
