5G growth, spectrum reforms shape India’s telecom sector in 2025

The Indian telecom industry continued to play a central role in the country’s digital expansion in 2025, with strong growth across subscribers, networks and data usage. The overall subscriber base reached 1.2 billion by November, while teledensity rose to 86.76 per cent, reflecting deeper connectivity across urban and rural India.

Wireless broadband remained the primary driver of growth, with 954.99 million users compared to 44.82 million wireline connections. Rapid adoption of 5G further strengthened the sector, with subscriptions touching 394 million by the end of the year, according to the Ericsson Mobility Report. Network expansion also gathered pace as India crossed 5.15 lakh 5G base transceiver stations, while average mobile data consumption climbed to 36 GB per user per month, projected to reach 65 GB by 2031. Fixed Wireless Access gained traction as well, with subscribers rising to 13.18 million in October across both urban and rural markets.

Lt Gen Dr S P Kochhar, Director General, Cellular Operators Association of India (COAI), said the numbers underline the sector’s role as a key enabler of India’s digital economy. “Telecom has become the backbone of Digital India, supporting everything from governance and education to commerce and innovation. The sustained growth in subscribers, data usage and 5G deployment reflects the industry’s commitment to nationwide connectivity,” he said.

He also highlighted the sector’s growing contribution to manufacturing and exports. Telecom exports from India have increased by 72 per cent over the last five years, rising to Rs. 18,406 crores in FY25 from around Rs. 10,000 crores in FY21. “Schemes such as Make in India and the PLI framework have enabled nearly 60 per cent import substitution in telecom products and positioned India as an emerging exporter of 4G and 5G equipment,” Kochhar noted.

Focus on resilience and self-reliance

The year saw a sharper focus on resilience, security and self-reliance. Operators strengthened cyber defence capabilities through AI-based fraud detection, cloud security investments and advanced analytics, protecting millions of users from malicious calls, messages and links. Increased automation and predictive maintenance further improved network reliability, while these advances laid the groundwork for the Bharat 6G Vision, which aims for India to contribute 10 per cent of global 6G patents through national testbeds and research initiatives.

“Security, reliability and innovation are no longer optional. They are fundamental to sustaining trust in digital networks and to preparing India for the next generation of technologies such as 6G,” Kochhar said.

Policy and regulatory milestones

On the policy front, 2025 marked an important phase as the sector aligned with the Telecommunications Act, 2023 and the evolving framework for service authorisations. Kochhar said the industry has consistently emphasised that the new authorisation regime must retain contractual certainty to support long-term investments. “Telecom networks require massive, sustained capital. Policy stability and predictability are critical to ensure continued investment,” he said.

The Telecom Minister Jyotiraditya Scindia has set an ambitious goal for the telecom sector to contribute 20 per cent to India’s GDP over the next decade. Kochhar welcomed this direction, noting that the draft National Telecom Policy recognises telecom as a strategic national enabler rather than just another vertical industry. He added that while the Government has taken supportive steps such as right-of-way (RoW) reforms, challenges remain due to high and inconsistent charges levied by some local authorities for network deployment.

Spam, fraud and the app-based communication gap

Combating spam, scams and digital fraud emerged as a defining theme of 2025. Telecom operators implemented multiple measures under TRAI’s TCCCPR framework, including PE–TM binding, DLT-based header and content registration, and analytics-driven spam tagging on voice and SMS. A key milestone was the nationwide rollout of the P/S/T/G suffix system for commercial SMS headers, enabling users to instantly identify the nature of messages.

“These measures have significantly reduced spam on traditional telecom channels,” Kochhar said. “However, a growing volume of fraudulent communication has shifted to app-based platforms that currently sit outside the telecom regulatory framework.”

He described the Department of Telecommunications’ decision to mandate persistent SIM-binding for app-based communication services as a landmark global first. “SIM-binding enhances accountability and traceability, and it is a critical layer in India’s defence against rising cyber fraud and misuse of digital platforms,” he said.

Spectrum, private networks and infrastructure challenges

Debate around captive private 5G networks and direct spectrum allocation to enterprises also continued during the year. Kochhar reiterated the industry’s position that enterprise 5G requirements can be efficiently met through spectrum leasing and network slicing by licensed operators. “This approach ensures efficient spectrum use, avoids interference and preserves essential national security safeguards such as lawful interception and traceability,” he said.

Spectrum availability remained a key concern, particularly in the 6 GHz band. The industry has repeatedly highlighted the need for around 2 GHz of mid-band spectrum to meet 5G traffic growth and has advocated allocation of the upper 6 GHz band for licensed IMT services rather than unlicensed use. The upcoming WRC 2027 will be critical in shaping global decisions on this band, with Indian operators strongly supporting its auction for 5G and future 6G services.

A major positive development was the Government’s approval to refarm 687 MHz of spectrum held by agencies such as Defence and ISRO. “This step increases India’s total IMT spectrum to nearly 1,587 MHz and is a game-changer in addressing long-term capacity constraints,” Kochhar said.

The Government also moved to curb the illegal sale of mobile signal boosters and jammers through updated e-commerce guidelines, addressing long-standing concerns over network interference and service degradation.

Digital trust and the road ahead

As the year draws to a close, digital trust has emerged as the common thread across policy, technology and investment. Parliamentary recommendations to converge the Telecom, IT and Broadcasting Ministries under a unified framework have been welcomed by the industry, particularly to address cross-platform challenges such as spam and fraud.

“Communications today cut across networks, platforms and services. A harmonised policy approach is essential to protect consumers and sustain trust,” Kochhar said.

Looking ahead, he said the focus will remain on secure, reliable and inclusive networks. “With the foundations for 5G scale, spectrum reform and stronger safeguards now in place, India’s telecom sector is entering a phase where trust and innovation will define competitiveness, setting the stage for a resilient and globally benchmarked digital future.”