As of 2022, India was the second-largest telecommunications market across the globe, with a subscriber base of over a billion users. The number of subscribers of the telecommunications company Bharti Airtel was approximately 574 million in financial year 2023. Out of this, 375 million subscribers were from India. The company operates across Asia and Africa in over 18 countries. In terms of subscribers, the company ranks amongst the leading three mobile service providers.
The Indian telecommunications industry
Spending in the communication services segment across the south Asian country increased in 2020 despite the impact of the coronavirus pandemic. And the telecommunication spending was estimated to reach 25 million U.S. dollars in 2023. With a growing subscriber base, investments into the sector have increased. The country saw a foreign direct investment equity inflow of about 4.4 billion dollars in 2020. India became the fastest growing market for mobile based applications in the world in 2018.
Government initiatives and outlook
As per the national e-governance plan, the department of Information Technology intends to set up more than a million internet-accessible common service centers, to aid the rapid increasing number of internet users within the country. The IP traffic increased four-fold in 2021, playing a vital role in revenue generation and possible mergers and acquisitions in the sector.
Internet penetration rate in India from 2014 to 2024
The internet penetration rate in India rose over 52 percent in 2024, from about 14 percent in 2014. Although these figures seem relatively low, it meant that more than half of the population of 1.4 billion people had internet access that year. This also ranked the country second in the world in terms of active internet users.
By 2021 the number of internet connections across the country tripled with urban areas accounting for a higher density of connections than rural regions. Despite incredibly low internet prices, internet usage in India has yet to reach its full potential. Lack of awareness and a tangible gender gap lie at the heart of the matter, with affordable mobile handsets and mobile internet connections presenting only a partial solution. Reliance Jio was the popular choice among Indian internet subscribers, offering them wider coverage at cheap rates.
As of April 2024, India was the country with the largest offline population worldwide. The South Asian country had over 643 million people without internet connection. China ranked second, with around 320 million people not connected to the internet. Despite these large shares of the disconnected population in these countries, China and India ranked first and second, respectively, as countries with the highest number of internet users worldwide.
In 2022, Africa lagged behind other global regions regarding internet penetration rate, as only 40 percent of the continent’s population accessed the web. In contrast, around 89 percent of Europe’s population were internet users. This is heavily influenced by the infrastructure development in the region. However, some improvements are forecasted, as by 2028, the internet penetration rate in Africa will be at an estimated 48.15 percent.
Government internet shutdowns around the world are another challenge for internet access. Between 2015 and the first half of 2023, 172 local internet connection disruptions occurred due to protests globally. Moreover, according to a 2022 report on internet freedom, almost four out of ten global internet users were deprived of essential freedoms on online platforms. In 2022, 78 new restrictions on internet usage were implemented worldwide. Asia led in imposing these restrictions, accounting for approximately 58 cases across various countries in the region.