India’s telecom sector witnessed significant policy, technology and infrastructure developments in the past year. The enactment of the Telecommunications Act, 2023, effective from July 2024, ushered in major reforms, including flexible spectrum allocation, clearer right of way rules, promotion of shared telecom infrastructure, expansion and renaming of the Universal Service Obligation Fund, and introduction of a regulatory sandbox for new technologies. It also incorporated new safeguards to protect users from unsolicited communications.
This period also saw increased investment in advanced technologies such as immersive 5G experiences and initial research in 6G. Telecom service providers (TSPs) achieved greater operational efficiency due to artificial intelligence (AI)-driven maintenance and customer service automation. The adoption of cloud, edge computing, virtualisation and extended reality also gathered momentum, further blurring the lines between telecom and information technology services.
These developments led to a renewed focus on telecom infrastructure strengthening, notably through expanded optical fibre deployments under BharatNet, rapid development of data centres and increased activity in satellite communications (satcom).
A look at the key trends that shaped the telecom sector over the past year and the way forward…
In-building solutions
According to the Digital Infrastructure Providers Association, roughly 85 per cent of data traffic and 70 per cent of voice traffic comes from buildings. This share is expected to reach 90-95 per cent with the wider adoption of 5G and 6G. However, indoor digital connectivity remains poor due to infrastructural challenges, such as 4G and 5G technologies struggling to penetrate thick walls, underutilisation of existing infrastructure and inadequate spectrum availability.
To address these issues, the Telecom Regulatory Authority of India (TRAI), in May 2025, released the draft manual for assessing properties for their digital connectivity under the Rating of Properties for Digital Connectivity Regulations, 2024. Meanwhile, the government has rolled out several initiatives, including reducing the average application clearance time from 448 days in 2019 to around 60 days by December 2024 through the GatiShakti Sanchar portal.
Looking ahead, rising data traffic requires large-scale investments, estimated at Rs 66 billion-Rs 90 billion, from existing telcos and internet service providers. In line with this, Reliance Jio and Bharti Airtel are rapidly expanding 5G fixed wireless access (FWA) base stations in rural areas.
5G gains traction
As of June 2025, 5G is available in 99.8 per cent of the country’s districts. This is a result of substantial investments by TSPs. As per industry estimates, Jio spent over $25 billion over a two-year period on the procurement of 5G airwaves and nationwide 5G network deployment, while Airtel reportedly spent $11 billion. The other two operators are still at early stages of 5G roll-outs. Bharat Sanchar Nigam Limited (BSNL) soft-launched Quantum 5G FWA in Hyderabad in June 2025, whereas Vodafone Idea Limited (Vi) rolled out 5G services in select Indian cities this year.
However, 5G has yet to generate incremental revenues for telecom operators due to limited commercial use cases. In fact, no bids were received in the 5G frequency band during the spectrum auctions held in June 2024. From an application perspective, FWA, a key use case for 5G technology, accounts for 25 per cent of the total 5G data consumption. However, the adoption of private 5G has been modest. In August 2025, the Department of Telecommunications (DoT) initiated a study to evaluate the potential for setting up private 5G networks through direct spectrum allocation to enterprises.
Monetising 5G could be a game changer for India, enabling telecom service providers to leverage new revenue streams while helping businesses enhance productivity as the country gears up for 6G roll-outs by 2030.
Wi-Fi connectivity
Wi-Fi technology has advanced rapidly in recent years. Before the introduction of Wi-Fi 6 in 2019, Wi-Fi 5 dominated the market. Recently, Wi-Fi 7 has emerged as a next-generation technology, offering revolutionary features such as ultra-low latency while operating in the same three bands as Wi-Fi 6E.
Many companies are currently providing managed Wi-Fi solutions in India to meet a range of business requirements. These include Airtel’s Managed Wi-Fi, Jio’s Enterprise Wi-Fi and Vi’s Managed Wi-Fi solutions.
The government has also made concerted efforts to improve Wi-Fi coverage. In September 2024, DoT made major amendments to the Prime Minister Wi-Fi Access Network Interface framework to remove bottlenecks in setting up public Wi-Fi access points. Meanwhile, Tamil Nadu, Goa and Karnataka have announced plans to set up public Wi-Fi hotspots.
Progress under BharatNet
BharatNet, one of the world’s largest rural telecom projects, aims to provide last-mile broadband connectivity to 250,000 gram panchayats (GPs) in India. As of January 2025, 692,676 km of optical fibre cable had been laid, and by March 2025, 218,347 GPs had broadband infrastructure. Further, 1,221,014 fibre-to-the-home connections have been commissioned and 104,574 Wi-Fi hotspots installed. Under BharatNet Phase III, BSNL has awarded contracts to several players, including the HFCL-Rail Vikas Nigam Limited-Aerial Telecom consortium, NCC, ITI and Tera Software, for projects in the Northeast. BharatNet Phase III aims to create, upgrade, operate and maintain a robust middle-mile network across 16 telecom circles.
Safeguards against the growing incidence of spam and scams
Spam calls (unsolicited commercial communications) and scam calls have reached unprecedented levels, with India reporting over 1.7 million cybercrime complaints and losses exceeding Rs 110 billion in the first nine months of 2024.
Stakeholders and regulators are working together to tackle these twin threats. A key initiative in March 2025 was the creation of the Financial Fraud Risk Indicator by DoT to provide financial institutions with intelligence on cyber fraud prevention. Further, it collaborated with WhatsApp in March 2025 to extend the “Scam Se Bacho”, Meta’s safety campaign against online scams and spam. Meanwhile, telecom and technology companies, including Airtel, Vi, Microsoft, Google and Meta, have formed the “Safer Internet India” coalition to address the issue collectively. Also, Bharti Airtel introduced AI-powered spam-fighting networks for its customers. Vi has launched a spam SMS detection system and BSNL has introduced a spam protection service.
Upward trajectory for satcom
The year 2024-25 has been transformative for the sector, driven by progressive regulatory reforms, technological advancements and growing private sector participation. On the technology front, experts expect India’s satcom future to be shaped by software-defined satellites, low earth orbit constellations, Ka-band high-throughput satellite systems, non-terrestrial networks/direct-to-device connectivity, 5G integration, satellite interenet of things (IoT) and emerging digital economy opportunities.
In terms of regulations, TRAI released a recommendation paper on the “Terms and Conditions for the Assignment of Spectrum for Certain Satellite-Based Commercial Communication Services” in May 2025. In June and July 2025, Starlink received approvals from the Indian National Space Promotion and Authorisation Centre and DoT to operate its satellite constellation above India.
Expanding data centre landscape
The rapid adoption of new-age technologies, online payments, cloud services, and mobile and internet services is driving demand for data centres in India. As of April 2025, the country’s total operational data centre capacity stands between 1.3 GW and 1.5 GW, spread over 20 million square feet. To meet the increasing demand for data centres, several domestic and foreign players, such as the Hiranandani Group, the Adani Group, the Reliance Group, Blackstone, CapitaLand, the Princeton Digital Group, Amazon and Microsoft, have made significant investments. Existing players such as NTT, CtrlS, Nxtra, STT and WebWerks are also expanding their capacities.
Ushering in a greener future
The Indian telecom industry is scaling up its efforts to build greener and more sustainable networks. For instance, Jio and Airtel have committed to reducing absolute Scope 1, 2 and 3 greenhouse gas emissions. Meanwhile, tower companies such as Indus Towers are advancing decarbonisation through tower solarisation, energy storage, efficient waste recovery and investments in other green technologies. The satcom industry is prioritising sustainable and energy-efficient satellite operations and working to reduce space debris. A case in point is Bellatrix Aerospace, which, in January 2024, successfully tested an electric satellite engine and green fuel in space. Data centres are not far behind, adopting sustainable solutions such as green power, integrating AI to streamline maintenance activities and moving towards liquid cooling.
Indigenous manufacturing ecosystem
India’s telecom manufacturing capacity has expanded significantly. As per industry estimates, import substitution in critical components reached 60 per cent, improving self-reliance in areas such as antennas and gigabit passive optical networks. By extending the scope of the Production-Linked Incentive scheme to include satcom products and aligning it with broader policies such as the India Semiconductor Mission, the government aims to enhance the sector’s global competitiveness in the coming years.
Telcos turn techcos
Companies like Airtel and Jio are evolving from traditional service providers into “techcos”, offering high-margin services. This shift is driven by saturated conventional markets, declining voice/data average revenue per user and competition from hyperscalers. Telcos are focusing on business-to-business services, enterprise solutions, cloud-native architectures and open digital platforms, enabling faster innovation and integration. Their success depends on new corporate mindsets, collaborative ecosystems and digital upskilling.
Outlook
The outlook for the Indian telecom sector over the next few years is strongly positive, driven by rapid technological advancements, policy reforms and expanding rural connectivity. Further, the government’s draft National Telecom Policy, 2025, aims to accelerate sector growth by doubling exports, strengthening infrastructure and achieving universal coverage of 4G and near-universal coverage of 5G by 2030.
Nikhaar Gogna
