India’s telecom sector has witnessed a striking shift. For the first time in recent quarters, prepaid subscribers have overtaken postpaid users in terms of average revenue per user (ARPU), according to the latest Performance Indicators Report released by the Telecom Regulatory Authority of India (TRAI) for April June 2025.
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Prepaid ARPU reached Rs 187 in the June quarter, surpassing postpaid ARPU of Rs 182.72. The development is significant in a country where prepaid accounts for more than 90 per cent of total mobile connections. At the same time, wireless data consumption in India hit a new milestone, with the average user consuming 24.01 GB of data per month, underscoring India’s status as the world’s largest data market.
For decades, postpaid customers were seen as the premium segment, offering operators steady revenue and relatively low churn. In contrast, prepaid subscribers were considered cost-sensitive, often relying on small recharges. That perception is now changing.
Over the past two years, telecom operators have revamped their prepaid offerings. Long-validity plans, bundled content through OTT tie-ups, and attractive data packs have encouraged prepaid customers to spend more per recharge. As digital services from payments to streaming become mainstream, prepaid users are demonstrating a willingness to pay for value-added connectivity.
Data Becomes Central to Everyday Life
Equally telling is the surge in mobile data usage. Total wireless data consumption touched 65,009 petabytes during the June quarter. The average Indian mobile user now consumes 24 GB of data per month.
The growth is being driven by multiple factors. Affordable 5G smartphones are now widely available, and telecom operators have extended high-speed coverage into semi-urban and rural markets. Video streaming remains the single biggest contributor, with OTT platforms rolling out cheaper plans and regional content. Social media, gaming, and short-video formats continue to push daily consumption higher.
A Market in Transition
India’s telecom market is entering a new phase. Prepaid subscribers, once considered low margin, are now leading revenue growth, while data consumption continues to climb to unprecedented levels. The dual trends reflect how consumer behaviour has evolved in one of the world’s most competitive telecom landscapes.
For operators, the challenge is twofold: to keep prepaid customers engaged with innovative plans, and to ensure networks remain robust enough to handle the rising tide of data. The latest numbers from TRAI confirm one thing India’s telecom story is no longer just about scale. It is about intensity, value, and the relentless rise of digital demand.
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