5G to drive India’s mobile data revenue by 67% between 2020-2026: Report

The 5G broadband will drive India’s mobile data usage by 29% and data revenue by 67% between 2020 and 2026, withstanding the unfounded concerns around radiation levels or concerns around higher prices, as per GlobalData, a data analytics firm.

The 5G spectrum auction in India is scheduled to start on July 26, 2022. The Indian government aims to see 5G networks covering at least 20 towns and cities across the country by the end of 2022.


The key telecom players in India including Airtel, Reliance Jio and Vodafone Idea are reportedly keen to participate in the 5G spectrum auction to expand their service offerings and increase revenues.


“Airtel is already testing 5G equipment. However, questions remain over whether it can afford to build 5G meaningfully. Reliance Jio's massive financial resources and existing market position will likely allow it to gain a market-leading position. Vodafone Idea, on the other hand, is likely to struggle due to its weakening customer base and financial position,” said Priya Toppo, analyst at GlobalData.


Due to widespread skepticism among Indian consumers regarding the adoption of 5G and the impending rise in data charges and smartphone pricing, particularly in rural areas, the bulk of mobile subscribers will continue to use 4G services. GlobalData estimates that only 27% of the country’s mobile subscribers (around 329 million) will be using 5G services by 2026.


The higher data prices, 5G promises superior service quality compared to the existing 4G networks may encourage digital businesses including edtech, healthtech, agritech, fintech, and e-commerce to further accelerate 5G adoption in India.