The mobile data service revenue in India is forecast to increase at a CAGR of 4.9 percent during 2022-2027, driven by the rise in mobile internet penetration, and increase in mobile data ARPU, according to GlobalData.
The mobile internet subscription penetration is expected to grow from 48.9 percent in 2021 to 78.1 percent in 2027, driven by the remote / hybrid work requirements, and demand for online entertainment, online learning, and digital payment services.

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

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.

5G in India

Major telecom operators are planning to launch 5G services. Reliance Jio plans to rollout 5G services in major metropolitan cities in October 2022 and country-wide by the end of 2023. Bharti Airtel plans to launch 5G services by the end of September 2022 in select cities and cover urban India by the end of 2023.

Vodafone Idea (Vi) is yet to announce its 5G plans. Vodafone Idea was the lowest bidder during the 5G spectrum auction in India. Reliance Jio spent the most — well ahead of Bharti Airtel.

Reliance Jio is expected to maintain its leadership position through 2027, driven by the expansion of its network coverage in the country, Subba Reddy, Telecom Analyst at GlobalData, said.