Indian telecom sector: Performance and progress in Q3 2024

The Telecom Regulatory Authority of India (TRAI) has released the "Indian Telecom Services Performance Indicator Report" for the quarter ending September 30, 2024. This comprehensive document provides insights into the key performance metrics and growth trends of the telecom, cable TV, DTH, and radio broadcasting sectors in India. Covering the period from July 1 to September 30, 2024, the report highlights significant achievements and challenges in the evolving telecom landscape.

India’s telecom sector, the second-largest in the world, has witnessed transformative changes over the years, driven by rapid digital adoption, infrastructural growth, and policy interventions. With over a billion telecom subscribers, the sector is pivotal in enabling India’s digital economy. TRAI’s quarterly reports serve as a barometer for evaluating the performance and progress of this vital industry.

In Q3 2024, the focus remained on expanding broadband services, improving quality, and integrating next-gen technologies like 5G and IoT. The report reveals growth trajectories, data consumption trends, and financial outcomes, underscoring the sector's resilience and potential.

Key Findings from Q3 2024

Subscriber Base and Connectivity

• Total Internet Subscribers: Increased marginally by 0.20% to 971.50 million, with urban areas contributing 566.16 million and rural regions 405.33 million.
• Broadband Growth: Broadband users rose by 0.39% to 944.39 million, while narrowband subscribers declined by 6.03% to 27.11 million.
• Wireline Subscribers: Achieved significant growth, increasing by 5.20% to 36.93 million, marking a year-on-year increase of 19.22%.
• Wireless Subscribers: Decreased by 1.44%, settling at 1,153.72 million, reflecting market saturation in some segments.

Tele-density

• Overall Tele-density: Stood at 84.69%, with urban tele-density declining slightly to 131.86% and rural tele-density dipping to 58.48%.

Usage Metrics

• Wireless Data Usage: Totaled 56,174 petabytes (PB), with an average per user consumption of 21.10 GB per month.
• Average Revenue Per User (ARPU): Increased by 9.60% to ₹172.57, reflecting better monetization of services.

Financial Performance

The financial health of the sector showed notable improvement during Q3 2024:

• Gross Revenue (GR): Increased by 6.27% to ₹91,426 crore.
• Adjusted Gross Revenue (AGR): Improved by 6.74% to ₹75,310 crore.
• License Fees: Registered a 6.69% growth.
• Spectrum Usage Charges (SUC): Increased by 8.50%, indicating higher spectrum utilization.

These metrics highlight the sector’s operational efficiency and its ability to adapt to changing market dynamics.

Broadcasting and Cable

• DTH Subscribers: Declined from 62.17 million to 59.91 million.
• FM Radio and Community Stations: Remained steady, with 388 FM channels and 513 community radio stations operational.

Market Highlights

• Private Operators Dominate: With a 91.36% market share, private players continue to lead, while PSU operators account for 8.64%.
• Public Wi-Fi: Over 164,800 hotspots facilitated 18,431 TB of data consumption, highlighting the growing role of public networks.

The report also underscores several critical achievements:

1. Expansion of Broadband: A steady increase in broadband penetration indicates progress towards the Digital India vision.
2. Sustainability in Wireline Services: A robust 19.22% year-on-year growth highlights renewed interest in wireline connectivity.
3. Improved Financial Metrics: Rising revenues and ARPU showcase operational efficiency and better customer engagement.

Challenges and Opportunities

While the sector shows promise, challenges persist:

• Urban-Rural Divide: Tele-density disparity underscores the need for equitable infrastructure development.
• DTH Subscriber Decline: The fall in DTH subscriptions calls for innovative strategies to retain market share amid OTT competition.

Future Outlook

India’s telecom sector is poised for significant advancements, particularly with the ongoing 5G rollout and increased emphasis on rural connectivity. Enhanced broadband penetration and innovative use cases in AI, IoT, and edge computing will further solidify India’s position as a global telecom leader.

The Q3 2024 report serves as both a progress marker and a roadmap for stakeholders, ensuring the sector remains a cornerstone of India’s digital transformation.