India adds 11 M telecom users in Q1 2025, but internet and DTH see decline

India’s telecom sector continued its steady expansion in early 2025, adding more than 10 million new subscribers in the first quarter alone. According to the latest performance indicator report from the Telecom Regulatory Authority of India (TRAI), the total number of telephone users—combining wireless and wireline—reached 1,200.80 million by the end of March 2025, up from 1,189.92 million in December 2024. The increase marks a 0.91% growth over the previous quarter and a year-on-year gain of 0.13%.

Urban areas accounted for 666.11 million of the total user base, while rural regions added 534.69 million. The country’s overall tele-density improved slightly to 85.04%, with rural tele-density reaching 59.06% and urban tele-density climbing to 131.45%. Private service providers continued to dominate the market, holding over 91% of the subscriber share.

Wireless connections, comprising both mobile and 5G Fixed Wireless Access (FWA), grew to 1,163.76 million by the end of the quarter, up 1.14% from the previous period. This includes a notable 6.77 million 5G FWA subscribers now counted in the wireless category for the first time. The mobile-only subscriber base stood at 1,156.99 million, reflecting a quarterly growth rate of 0.55%. While the mobile segment grew modestly, it showed a 0.73% decline compared to the same period last year.

In contrast, the number of wireline subscribers fell from 39.27 million to 37.04 million, a drop of 5.67% over the quarter. This fall is mainly due to the reclassification of 5G FWA connections. Despite the quarterly dip, wireline subscriptions showed a year-on-year increase of over 9%, signalling stable demand in some user segments. Urban wireline connections made up the bulk, with 33.54 million users, while rural connections totalled just 3.50 million. Wireline tele-density declined to 2.62% overall, with rural areas contributing only 0.39%.

Internet usage, on the other hand, saw a small decline. The total number of internet subscribers dropped slightly from 970.16 million in December 2024 to 969.10 million in March 2025. Broadband users decreased from 944.96 million to 944.12 million, while narrowband subscriptions also fell. The urban-rural divide in internet access remains wide, with 561.42 million users in urban areas and 407.69 million in rural regions. On a per capita basis, rural India had only 45 internet users per 100 people, compared to 111 in cities.

Despite the drop in user numbers, revenue indicators showed improvement. Gross Revenue (GR) rose by 1.93% to Rs 98,250 crore during the quarter, while Adjusted Gross Revenue (AGR) increased by 1.66% to Rs 79,226 crore. The applicable gross revenue stood at Rs 92,618 crore. Year-on-year, all revenue indicators posted strong growth: GR rose by 11.74%, AGR by 12.44%, and license fee collections went up by 12.46%. Monthly average revenue per user (ARPU) for wireless services also saw a slight uptick, rising to Rs 182.95. Prepaid users averaged Rs 182.53 per month, while postpaid users reached Rs 187.48. Each subscriber, on average, used 22.19 GB of data monthly, and the revenue per GB was Rs 9.11.

While the mobile segment expanded, broadcasting and television services experienced a setback. The number of active pay DTH subscribers fell from 58.22 million to 56.92 million. The country currently has four operational DTH pay operators. TRAI also reported a total of 918 private satellite TV channels permitted by the Ministry of Information and Broadcasting. Of these, 333 were pay channels, including 232 in standard definition and 101 in high definition. FM radio, another key media sector, remained stable with 388 private operational stations across 113 cities, although six channels merged into a single company during the quarter. Advertisement revenue from private FM radio channels dropped to Rs 466.63 crore from Rs 500.11 crore in the previous quarter.

In terms of quality of service, both wireless and wireline providers met all TRAI benchmarks across the board. Wireless service providers reported over 98% success rates in call setups, under 2% downtime, and full compliance in call centre accessibility and complaint resolution. Broadband providers also stayed within limits for latency, jitter, and bandwidth usage, meeting requirements in every service area.

While the sector continues to grow, the slowdown in broadband subscriptions and the dip in DTH numbers point to shifting consumption patterns. Mobile services remain the dominant platform for communication and data use in India, and the inclusion of 5G FWA services may further shape growth trends in the quarters ahead.