The report highlighted that the rapid expansion of 5G networks in urban areas, cost-effective service plans, and the increasing accessibility of 5G smartphones have contributed to the higher penetration of 5G in the country.
According to the November 2023 Ericsson Mobility Report, the 5G subscriber count in India is projected to reach 130 million by the close of 2023, a significant rise from the 10 million reported at the end of 2022. The report attributes this growth to the rapid expansion of 5G networks in urban areas, cost-effective service plans, and the increasing availability of 5G smartphones.
"India has witnessed significant 5G network rollouts by service providers since the introduction of 5G services in October 2022. The rapid expansion of network coverage in cities, coupled with affordable service plans and the increasing availability of 5G smartphones, has driven swift adoption of 5G in the country. The report anticipates 5G subscriptions to reach 130 million in 2023 and forecasts a growth to 860 million by 2029.
Jio and Airtel, major telecom operators, reported that the number of 5G users surpassed 125 million in November. With this achievement, India has now secured a position among the top three nations with widespread 5G deployment. Currently, 5G services are accessible in over 8,000 towns and 20,000 villages, supported by more than 385,000 5G base transceiver stations."
In 2022, Ericsson estimated India's 5G subscriber base to be 31 million users, experiencing a more than fourfold increase in 2023 alone.
The report highlighted the transformative impact of digital technologies like e-commerce and e-governance in India. 5G plays a crucial role in propelling the next wave of growth and transformation in the country's digital landscape, aligning with the government's vision of creating a digitally empowered society and a knowledge-based economy.
"The Indian government's spectrum auction in July 2022 and Jio's acquisition of spectrum across low-band (700 MHz), mid-band (3.5 GHz), and high-band (26 GHz) have facilitated a rapid expansion of 5G. The technology is poised to drive the next phase of growth and transformation in India's digital realm," as per the report.
The report anticipates a 6.6x growth in India's 5G subscribers over the next six years, with 4G subscribers expected to decline from 870 million to 390 million by 2029. This shift means that 68% of all mobile subscribers in the country will be on the 5G network by that year.
Currently, the Indian market is dominated by 4G subscriptions, set to reach 870 million from 820 million in December 2022.
Nitin Bansal, Head of Ericsson India, highlights that the rise in 5G subscribers and the increasing number of smartphone users will drive "social and economic inclusion in India."
The report notes a decline in 4G users to 390 million by 2029 as subscribers transition to the 5G network, with the total number of mobile subscriptions expected to reach 1.2 billion during the same period. Additionally, it suggests that 5G fixed wireless access (FWA), branded as AirFiber, is seen as a crucial solution for telecom operators to recoup investments in the absence of compelling 5G use cases.
“Within a year of launching 5G, telcos have also introduced 5G fixed wireless access services, which are seen as a significant revenue opportunity in the country,” Ericsson said.
The report said the number of FWA connections worldwide is expected to increase to 330 million by 2029 from 130 million at the end of 2023.
The report further said that smartphones as a percentage of all mobile phones in the country will grow from 82 per cent this year—to 93 per cent in 2029. By this time, India is projected to have a total of 1.27 billion mobile phones—thereby bringing 1.18 billion smartphones to the country by 2029.
In India, the average data traffic per smartphone is the highest globally. It is projected to grow from 31 GB per month in 2023 to around 75 GB per month in 2029 — a CAGR (compound annual growth rate) of 16 per cent.
