India 5G Surge Boosts Data: Nokia MBiT 2025 Report
India’s telecommunications sector is undergoing a significant transformation, driven by the rising adoption of 5G smartphones and a surge in data usage. According to Nokia’s Mobile Broadband Index (MBiT) 2025 Report, 87% of smartphones shipped in India during Q2 2025 support 5G, up significantly from 79% the previous year.
The surge in device capability is reshaping how data is consumed, particularly through growth in Fixed Wireless Access (FWA) services and applications powered by generative AI (Gen AI), both of which require high bandwidth and low latency to perform effectively.
Nitin Bansal, Managing Director of Ericsson India, highlighted the scale and pace of the change: “As more users migrate from 4G to 5G, India’s digital ecosystem is rapidly evolving. We’re proud to support the transformation with robust infrastructure and partnerships across the telecom sector.”
Data traffic growth spurs telcos to invest in infrastructure
The growth in data traffic is undeniable. India’s mid-band 5G coverage reached 95% of the population by the end of 2024, surpassing many global regions, including Europe and North America.
The rapid adoption of 5G FWA services in rural and underserved areas significantly contributes to the trend. The report noted that FWA users in India consume over 12 times more data than average mobile users, demonstrating the technology’s ability to bridge connectivity gaps with broadband-quality service.
The booming mobile data consumption is creating fresh revenue streams for telecom operators while accentuating the need for enhanced infrastructure. Data traffic in India increased by 23% year-over-year in 2024, reaching 21.5 exabytes per month, with 5G networks accounting for an increasingly significant share of global traffic.
To support the surge, Indian telcos are scaling their data centre capacities dramatically. Analysts forecast India’s data centre capacity will reach 3 GW by 2028.
The facilities are not standalone but designed to integrate closely with core telecom networks, enhancing operational efficiencies and enabling new revenue models aligned with the evolving digital economy.
Market dynamics and spectrum strategy
Airtel and Reliance Jio dominate India’s 5G market with differing strategies that complement the national growth pattern. Jio has deployed a standalone 5G network, primarily using lower-frequency bands, to boost rural penetration, while utilising mid- and high-band spectrum for urban areas.
Airtel, conversely, has taken a non-standalone approach, leveraging existing 4G infrastructure for faster rollouts in urban segments.
The approaches have generated intense network competition, driving improvements in 5G availability and user experience. Government actions, including the release of additional spectrum and encouragement of auctions for the 6 GHz band, further boost capacity and coverage.
Gen AI and telco data centres: The next earnings driver
Generative AI reflects a broader industry trend where 5G networks and AI converge to unlock new monetisation opportunities. Operators are redesigning capital expenditure programmes to balance network rollout and AI capability investment.
Industry observers consider operators who focus on integrated networks and data centres powered by AI will lead future growth. The investments enable better real-time analytics, network automation, customer experience enhancements and innovative services aligned with digital transformation needs.
India’s telecommunications industry is evolving rapidly through a blend of widespread 5G adoption, soaring data traffic and deep investments in AI-capable, integrated data centres.
