Getting India’s Next 100 Million Broadband Users Will Be Very Challenging: Report

Getting India's Next 100 Million Broadband Users Will Be Very Challenging: Report
Despite India’s broadband user base nearing the one-billion mark, reaching the next 100 million users will be a formidable challenge, especially in rural regions, according to recent data from the Telecom Regulatory Authority of India (TRAI) and industry analysis, ETTelecom reported.

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Tariff Hikes and SIM Consolidation

As of March 2025, India’s total broadband user base stood at 944.12 million, bolstered by rising smartphone penetration, 4G/5G rollouts, and expanding Fixed Wireless Access (FWA) services. However, the pace of new subscriber additions has slowed markedly, with rural areas—which previously led growth—now struggling under the weight of rising costs and limited affordability.

The pace of telecom subscriber additions in rural India has slowed sharply following tariff hikes in July 2024, marking a significant reversal in a market that had previously outpaced urban areas in user growth.

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According to data released by the TRAI, rural India added a net 790,000 new subscribers in the 12 months ending March 25, 2025—a steep drop compared to the 15.27 million added in the previous fiscal year. The decline has been attributed largely to SIM consolidation, as many rural households reduced the number of active SIM cards following the tariff increases.

“This is largely due to SIM consolidation after the tariff hikes as many rural households cut down on multi-SIMs and new connections,” said Balaji Subramanian, Vice-President at IIFL Securities, as mentioned in the report. “We expect a correction in rural net adds as both Airtel and Jio will continue to enhance rural rollouts in coming quarters.”

Urban Areas See Sluggish User Additions

Urban areas witnessed a similar trend, though the drop was less pronounced. Urban regions recorded a net addition of 730,000 subscribers in FY25, down from 11.67 million the previous year. As of March 2025, India’s total rural and urban subscriber bases stood at 534.69 million and 666.11 million, respectively.