Why India's 5G and broadband expansion is slowing despite high demand

India's 5G and broadband expansion is moving slower than expected, raising concerns among telecom companies about meeting the country's long-term digital goals

India wants nationwide 5G coverage, fast fibre networks and affordable broadband. But inconsistent state policies and slow approvals are holding back progress, pushing up costs and delaying investments, according to a report by The Economic Times.

 

Industry executives say that India’s 5G and fibre ambitions are getting stuck at the state level despite central government support and updated Right of Way (RoW) rules.

 

Power tariffs add another layer of uncertainty

 

Electricity rates vary sharply across states, affecting operating costs for telecom infrastructure. The news report quoted CS Krishnadas, CEO of Umiya Buildcon, as saying that commercial power can cost anywhere between ₹3 and ₹18 per unit, while telecom-classified tariffs range from ₹2 to ₹8. These gaps directly affect daily expenses and long-term returns.

 

Digital infrastructure providers said that the lack of uniformity makes planning difficult, the news report said.   

 

Patchy compliance

 

The Department of Telecommunications introduced new RoW rules last year and urged states to adopt them. But compliance is patchy. TeamLease RegTech, which tracks regulatory requirements, said that poor coordination between the Centre and states continues to slow national programmes like BharatNet and Digital India, the news report said.

 

The news report quoted TeamLease RegTech CEO Rishi Agrawal as saying that unpredictable approvals and shifting local requirements keep delaying fibre and tower rollout. Without a true single-window system, companies must chase multiple departments, adding paperwork and time, Agrawal added.

 

India’s 2030 telecom goals

 

The draft National Telecom Policy 2025 sets big targets for 2030:

 

• 100 per cent 4G and 90 per cent 5G population coverage

• 100 million fixed-line broadband households

• Full fibre coverage across all gram panchayats under BharatNet with 98 per cent uptime

• 80 per cent tower fiberisation, up from 46 per cent now

 

However, infrastructure delays could make these goals harder to reach.

 

5G phone adoption is rising fast

 

India’s 5G device readiness is improving even as networks lag behind.

• 5G handsets made up 87 per cent of smartphone shipments in H1 2025

• India now ranks 14th globally, up from 40th two years ago

• Global average 5G share: 71 per cent

• South Korea and Japan lead with 97 per cent 5G share; US at 93 per cent

• Pakistan and Bangladesh: 15 per cent

• Venezuela is last with 1 per cent

 

But India still has a digital gap: over 300 million people continue using 2G or 3G phones, slowing mass migration to faster networks.   

 

What next

 

Telecom players said that faster 5G and broadband expansion will depend on:

• States aligning with the Centre’s RoW rules

• A real single-window approval system

• Consistent power tariffs for telecom infrastructure

• Clearer, uniform regulations across states