As India’s broadband user base inches closer to the one-billion mark, the challenge of adding the next 100 million users is expected to be significantly tougher—especially in rural regions. This insight comes from recent data published by the Telecom Regulatory Authority of India (TRAI) and various industry analyses.
Tariff Hikes and SIM Consolidation Impact Growth
As of March 2025, India’s total broadband subscribers stood at 944.12 million, driven by increasing smartphone penetration, rapid 4G/5G rollouts, and the expansion of Fixed Wireless Access (FWA) services. However, the momentum of new subscriber additions has slowed considerably, with rural markets—which once led growth—now feeling the pressure of rising costs and affordability challenges.
The slowdown is largely linked to tariff hikes introduced in July 2024, which triggered a wave of SIM consolidation in rural India. According to TRAI’s data, rural regions added just 790,000 new subscribers over the 12 months ending March 25, 2025—a sharp decline compared to the 15.27 million added the previous fiscal year.
“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. He added, “We expect a correction in rural net additions as both Airtel and Jio continue to enhance rural rollouts in the coming quarters.”
Urban Markets Also See Sluggish Growth
Urban areas witnessed a similar slowdown, though less dramatic than rural regions. In FY25, urban regions recorded a net addition of 730,000 subscribers, down from 11.67 million in the previous year. As of March 2025, the total number of subscribers in urban and rural areas stood at 666.11 million and 534.69 million, respectively.
Urban teledensity—the number of telecom users per 100 people—dropped slightly from 133.72% to 131.45%, reflecting reduced multi-SIM usage due to rising plan costs. Meanwhile, rural teledensity remained significantly lower at 59%, underscoring the untapped growth potential in these markets.
Slowing Broadband Growth: A Major Hurdle Ahead
Despite regional disparities, India’s total broadband user base has now reached 944.12 million. However, pushing this number beyond the one-billion mark is expected to be an uphill battle. “This is mainly because, for a very large rural population, even an annual spend of ₹1,000 on a mobile device and recharge is unaffordable,” a senior telecom executive noted.
Nonetheless, there is still room for growth in rural areas where teledensity lags. The rising market for refurbished smartphones and the growth of 5G FWA-based home connections are signs of increasing digital adoption, even in rural regions.
