Home » India mobile data service market revenue to register 4.9% CAGR over next five years

India mobile data service market revenue to register 4.9% CAGR over next five years

by Tech Reporter
9th Sep 22 3:04 pm

The mobile data service revenue in India is poised to increase at a compound annual growth rate (CAGR) of 4.9% over the forecast period 2022-2027, driven by the continued rise in mobile internet penetration, and increase in mobile data ARPU, according to GlobalData, a leading data and analytics company.

As per GlobalData’s India Mobile Broadband Forecast, the mobile internet subscription penetration of population is expected to increase from 48.9% in 2021 to 78.1% in 2027, driven by the remote/hybrid work requirements, and high demand for online entertainment, online learning, and digital payment services.

The growing availability of mobile internet services even in rural and remote areas will also drive the mobile internet penetration in the country.

The average monthly mobile data usage is forecast to increase from 16.3 GB in 2022 to 27.2 GB in 2027, largely owing to the growing consumption of bandwidth intensive online video and social media content on smartphones.

Subba Reddy, Telecom Analyst at GlobalData said, “In India, 4G will be the dominant technology, despite the imminent rollout of 5G services soon.

“The expansion of 4G services by operators in rural areas, coupled with the government initiatives to take 4G services to more than 24,500 uncovered villages and upgrade more than 6,000 villages from 2G/3G to 4G connectivity in the next five years will drive the demand for 4G services over the forecast period.”

With the recently concluded 5G spectrum auction and all major operators planning to launch 5G services soon, India is getting ready to jump on 5G bandwagon.

Reliance Jio, for instance, plans to rollout 5G services in major metropolitan cities in October 2022 and country-wide by the end of 2023. Bharti Airtel also plans to launch 5G services by the end of September 2022 in select cities and cover urban India by the end of 2023.

Reliance Jio was ranked number one in mobile subscriptions in 2021, followed by Bharti Airtel and Vodafone Idea (VI). Reliance Jio is expected to maintain its leadership position through 2027, driven by the continued expansion of its network coverage in the country.

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