Hyderabad – A recent report from Opensignal has revealed alarming trends in India’s 5G connectivity, indicating that average download speeds for leading telecom providers Airtel and Jio have sharply declined over the past two years. Despite operators raising tariffs in 2024, the report highlights that network congestion is significantly impacting user experience as the number of 5G subscribers continues to rise. The report, published on October 17, identifies that the surge in 5G adoption and increased data consumption per user are straining the networks.
As the volume of 5G users grows, operators are struggling to manage spectrum resources effectively. Currently, 16% of 5G connections in India utilize low-band (700MHz) spectrum, which, while providing extensive coverage, limits data speeds. In contrast, the majority of connections rely on the upper mid-band 3.5GHz spectrum, where increased traffic has compelled providers to revert to mid-band transmission. This shift allows for wider connectivity but at a reduced speed. This study was conducted between June 1 and August 29, 2024, and positions India as a leader in 5G availability regionally.
However, the report underscores a two-party contest in the Indian telecom industry, with Jio and Airtel dominating the market. Meanwhile, their competitors Vodafone Idea (Vi) and state-owned BSNL—struggle to keep pace. Vi continues to grapple with financial challenges and is currently unable to offer 5G services, while BSNL is focused on expanding its 4G network. An internal letter from the BSNL employees' union to Telecom Minister Jyotiraditya Scindia details the dire situation for the state-owned company, emphasizing the loss of customers to private operators Jio and Airtel due to the absence of 4G and 5G services.
The letter also points out that BSNL is restricted from acquiring standard 4G equipment from global leaders like Nokia, Ericsson, and Samsung, being forced to rely solely on indigenous manufacturers. This limitation has significantly delayed BSNL's rollout of 4G and 5G services. With BSNL absent from significant competition in the market, private companies have taken the opportunity to raise their tariffs substantially reportedly by 10-27% in July 2024. The BSNL employees' union argues that if the state-owned entity were actively competing, it would have provided pressure on Jio and Airtel to moderate their price increases. As the telecom landscape evolves, users and stakeholders await to see how these developments will shape the future of 5G connectivity in India and whether competition can be reinvigorated to benefit consumers.