As the clock strikes 00:00 on January 1, 2025, and we step into a new year, the Indian telecom industry stands on the cusp of remarkable transformation. It is looking forward to monetising telecom services to support substantial investments in networks and technology, while striving to sustain this cycle through further investments. From 5G rollouts and network densification to AI-driven solutions, 2024 witnessed significant developments. The industry is now in the midst of the mammoth task of delivering on the promises made to customers and investors.
Also Read: Airtel, Vodafone Idea and Reliance Jio in Q2FY25: A Snapshot of ARPU and Subscribers
With that said, while there are no major expectations, this article provides a quick overview of the wireless service providers in the Indian telecom sector and their scenario on Day 1 of 2025. Kindly note that the subscriber numbers are based on TRAI's latest report.
1. Bharti Airtel
Bharti Airtel, the second-largest telecommunications service provider, caters to 385.41 million wireless subscribers through its FWA/5G/4G/2G network technologies and serves 9.54 million wireline subscribers. The company focuses on delivering the right customer experience and aims to improve ARPU to an immediate target of Rs 300.
With an ARPU of Rs 233 in Q2FY25, Airtel leads the postpaid segment and plans to expand its 5G networks across India, including rural areas, to ensure a seamless consumer experience. Airtel has stopped investing in 4G networks and is now entirely focused on 5G and 5G advanced technologies.
Airtel's key offerings include data rollover, unlimited 5G on eligible plans, an AI-powered inbuilt spam filter, and Airtel Rewards benefits such as Apollo 24/7 Circle membership, Blue Ribbon Bags, and OTT-bundled services, among others.
Also Read Bharti Airtel Year-End Review: Key Milestones and Developments in 2024
2. BSNL/MTNL
The state-owned telecommunications providers BSNL and MTNL serve 92.40 million and 1.90 million wireless subscribers, respectively, through their 2G/3G/4G networks. BSNL reported 6.10 million wireline subscribers, while MTNL reported 2.06 million. BSNL is currently rolling out its indigenous 4G network in phases, with completion expected by June 2025. In the first phase, BSNL is installing 1 lakh towers for 4G, with additional towers planned for subsequent phases.
As of December 20, BSNL provides 4G coverage to over 20,000 villages across India using a home-grown 4G/5G stack. VoLTE services are now active by default for BSNL 4G customers, and the operator has no plans for prepaid tariff hikes, continuing to offer the most affordable plans in the market.
Recently, BSNL began piloting free IFTV and BiTV services for FTTH and mobile users, offering live TV services. The company plans to launch eSIM and PAN-India VoWiFi services in 2025.
Also Read: Jio Reports Fastest FWA Growth Globally with Over 2.8 Million AirFiber Connections
3. Reliance Jio
Reliance Jio, the largest telecommunications service provider, caters to 460.02 million wireless subscribers through its FWA/5G/4G networks and 15.68 million wireline subscribers through fiber services. Although Jio reportedly does not prioritise ARPU as a metric, the company reported an ARPU of Rs 195.10 in Q2FY25. Jio's True 5G network now covers 7,764 cities and towns, while its AirFiber services are available in 7,722 towns.
Also Read: Reliance Jio Says Not Concerned About ARPU, Terming It a Misnomer: Report
Jio recently started rolling out its AI Cloud Welcome offer, providing up to 100GB of free cloud storage to customers. The operator is currently focusing on democratising AI services, in partnership with Nvidia, to offer services at a very cheap price, just as it did with its mobile services. Jio's network stack, as well as its AI platform, Jio Brain, is developed in-house and powers all of Jio's service offerings.
Also Read: Jio Platforms Working with Nvidia to Democratise AI in India: Report
In the satcom space, Jio has already demonstrated its JioSpaceFiber service and has recently launched India's most affordable 5G smartphone in partnership with Qualcomm and Poco. As part of its mission to make India 2G-free (2G-Mukt), Jio has reportedly sold around 135 million JioPhone devices as of November 2024. Jio's major consumer offerings include its OTT benefits, Unlimited 5G for eligible subscribers, AirFiber offers/Installation, and free discount coupons and benefits.
According to earlier reports, Reliance Industries is expected to launch the initial public offering (IPO) for its telecom arm, Jio, in 2025.
Also Read: Government Waives Bank Guarantees; Vodafone Idea Sees Boost for 4G, 5G Investments
4. Vodafone Idea (Vi)
The third-largest telecom operator, Vodafone Idea (Vi), which has been continuously losing wireless subscribers, serves 210.48 million wireless subscribers through its 4G/3G/2G networks and 0.85 million wireline subscribers. Vi reported an ARPU of Rs 156 in Q2FY25 and recently received significant relief from the Department of Telecommunications (DoT).
The government waived the requirement for bank guarantees (BGs) for spectrum auctions held prior to 2021. Vi termed this as continuous government support, stating, "It will ensure that the exposure of the banking system is utilised by telecom operators towards further proliferation of 4G and 5G networks in India."
Also Read: Vodafone Idea Tops 4G Network Experience in India: Opensignal
So far, Vi has focused on enhancing the 4G network experience in India. Its recent recognition from OpenSignal for having a superior 4G network in India highlights Vi's commitment to improving its network and providing top-notch services to customers.
We can see VI 5G going live across circles in 2025, as per earlier reports. As the operator strives to offer more value in each of its offerings, Vi's major consumer offerings include its Extra validity, Free Data benefits, OTT benefits, Super Hero and Hero Packs, along with its Postpaid plans.
Also Read: Prices Need Further Uptick to Generate Reasonable Returns: Vodafone Idea
Conclusion
We believe that each operator is on its unique path with individual priorities. If we observe, one operator is focusing on densifying 5G, delivering the right consumer experience while striving to improve ROCE (Return on Capital Employed), while another is focusing on democratising AI while offering cheap services. Another operator is rolling out 4G services with no intention to raise tariffs, and yet another is rolling out 5G services while losing subscribers month by month. So, everyone is in their own race, and there is not much we can expect overall.
Also Read: Reliance Jio Slows Down 5G Expansion Amid Monetisation Issues: Report
Better Network Experience
However, as consumers, we expect better network coverage. This sentiment was echoed in a recent poll conducted by TelecomTalk on X, which gathered a small number of votes over three days.
Voice and SMS STVs
With the regulator's recent mandate for telcos to introduce separate Special Tariff Vouchers (STVs) for voice and SMS packs, this move is expected to benefit consumers, and it will be exciting to see the plans that will be launched in 2025.
Also Read: Spam, UCC Messages Find Their Way to Users Through RCS and OTT Apps?
Spam via RCS and WhatsApp
While the telecom industry is focused on addressing spam on telecom networks, we believe consumers are being pestered with spam and unsolicited commercial communication (UCC) via alternate routes such as RCS and WhatsApp. This is another growing concern.
Also Read: Telcos Have Reached a Saturation Point with Limited Monetisation Prospects?
Industry Saturation and Monetisation Aspects
Having said all this, as we discussed earlier, we believe that whether it's AI, 5G, or any other service that telcos introduce, the telecom industry has reached its saturation point. There is not much more operators can do regarding monetisation with the current tariff structure. At the current juncture, even with the claims of telcos about AI being infused into every service layer of telecom, considering the current offerings, there is hardly any scope for monetisation, as we believe, customers don't see a significant difference that justifies paying for or opting into a particular service or benefit.
We can only wait and watch how telcos tackle this, and only time will tell how the developments will unfold in 2025.
