According to reports, the size of the telecom industry is set to cross the Rs 10 lakh crore marks next year and by 2025 it is expected to cross Rs. 13 lakh crore as 5G services go live by end of the year.

The technology is likely to expand to several cities and towns in 2023 and beyond.

Faisal Kawoosa, chief analyst at Techarc says, “Smartphones will continue to be the jewel of the telecom industry in India even as 5G goes commercially live in India anytime now. While 5G is poised to improve the overall health of the telecommunications sector, the significance of the smartphones industry is only going to embolden in the 5G era.”

According to reports, the telecom industry is expected to add one lakh crore every three years compared to the previous trend of adding the same in a four-year period. Further, the sector is expected to grow at a compound annual growth rate (CAGR) of 9.4 percent between 2020-2025, while the smartphone industry lead the growth at a CAGR of 15.9 percent during the period.

With the introduction of 5G, there is a positive impact on the revenues of the industry with a CAGR in between 2023-2025 expected to be 10.1 percent against 8.2 percent.

Reports suggest that the increase in CAGR by 1.9 percent due to 5G is likely to give accelerated relief to the telecom sector in the country, after a decade of turbulence which saw consolidation and winding up of several telecom operators from the map.

Smartphone growth will continue to be backed by upgrade and replacement trends with an estimated 85 percent of the sales during the period of 2023-25 occurring due to it. In 2024, the 5G smartphone sales will exceed that of 4G smartphone sales with the contribution of 5G smartphone sales touching 54.5 percent. The 4G smartphones will continue being in demand till a little over 2030.