Nokia India report shows gaps between 5G investments and returns

Nokia’s latest Mobile Broadband Index (MBiT) report has revealed gaps between 5G investments and returns for telecom operators.

India 4G and 5G data subscribers Nokia report
India 4G and 5G data subscribers Nokia report

5G data traffic – on mobile and FWA — surged three-fold in 2024 to reach 7.6 Exabyte. But 5G still only accounts for 35.5 percent of the total mobile data traffic. 4G data traffic is continuing to dominate at 64.5 percent at the end of last year. This indicates that despite the hype, 5G adoption in India is far from universal, and a large segment of users remains reliant on 4G across the country.

Leading telecom operators such as Bharti Airtel and Reliance Jio have made significant investment in spectrum for 5G and network roll outs to support the needs of data-hungry customers.

India’s total mobile data traffic per month grew by 23 percent to 21.5 Exabyte, yet the infrastructure development has struggled to keep pace with demand, particularly in Category B and C circles. While these regions reported a 3.4 and 3.2 times increase in 5G consumption, the reality is that network quality and availability remain inconsistent outside major metro areas.

Even in metros, where 5G now accounts for 43 percent of total broadband data usage, it still leaves more than half of mobile broadband users dependent on 4G, raising concerns about network readiness and uniformity.

4G vs 5G

The number of 5G subscribers in India will reach 770 million in 2028 from 290 million in 2024. Nokia says ~120 million 5G subscribers are expected to be added annually. The number of 5G subscribers has reached 290 million in 2024 as compared with 131 million in 2023 and 12 million in 2021.

For comparison, India has 613 million 4G data subscribers at the end of 2024 as compared with 724 million in 2023, 787 million in 2022 and 702 million in 2021. The decline in 4G subscribers from 724 million in 2023 to 613 million in 2024 suggests that 5G smartphone customers are opting in for a better experience.

The number of 5G devices in India doubled in 2024 to reach 271 million, and nearly 90 percent of smartphones replaced in 2025 are expected to be 5G-capable. However, the rapid replacement cycle raises questions about affordability, e-waste management, and the true accessibility of 5G services, particularly for lower-income users.

FWA

The reliance on 5G Fixed Wireless Access (FWA) has also brought new issues, with FWA users consuming over 12 times more data than traditional mobile users. While this has driven data consumption, it has also strained network capacity, according to reports. Moreover, the dependence on FWA, which now contributes 25 percent of total 5G traffic, suggests that 5G adoption is being driven more by necessity rather than superior mobile experiences.

The move towards 5G Advanced and the eventual transition to 6G are being touted as game changers, with promises of AI-driven intelligence, improved connectivity, and spatial and temporal sensing. However, these future advancements do little to address present issues such as high device costs, inconsistent connectivity, and the digital divide between urban and rural India.

Despite major investments and corporate optimism, the reality is that 5G in India still faces hurdles in accessibility, affordability, and reliability, raising concerns about whether it will truly revolutionize the country’s digital landscape or simply deepen existing disparities.

Baburajan Kizhakedath

Latest

More like this
Related

China Mobile: 5G and new business models drive growth in 2024

The annual financial performance report from China Mobile has...

Vodafone Idea’s 5G: Elevating customer experience in Mumbai

Vodafone Idea (Vi), a leading telecom operator, has launched...

Virgin Media O2 plans £700 mn investment in mobile network

Virgin Media O2 has announced a £700 million investment...

Operators step up AI solutions to overcome revenue crisis

Telecommunications operators are leveraging artificial intelligence (AI) to provide...