Telecom operators to focus on small towns

Telcos have seen strong growth, led by monetization across tier-II market

- Gulveen Aulakh

Indian telecom operators would look to focus on improving network coverage and capacity in small towns and rural areas in the coming year, as availability of 5G service enables higher data consumption in these geographies compared to metros, analysts said.

According to data from investment research firm Bernstein Societe Generale Group, consumers in tier-II cities use more data compared to those in metros, at 35-40 GB per capita per month, which is 15-20% higher.

"Peak volumes of 50-60 GB have often been observed during sporting events like Indian Premier League," the research firm said. It added that the amount of time Indian 5G users spend with an active 5G connection in tier-II cities is catching up with major cities.

Tier-II cities such as Jodhpur, Ranchi and Lucknow are in the 35-40% 5G penetration (5G device/5G subscription), which is comparable to tier-I cities (40-45%), the research firm said in a note issued in October.