As per the recent data released by the Telecom Regulatory Authority of India (TRAI), user spending on mobile phones has gone up by around 1.1 percent in the fourth quarter of FY 2025 as compared to the previous quarter, to reach about ₹65,800 crore in January-March. The increment is potentially because of the headline tariff hikes in July 2024, which have reflected in the higher net revenue of the telecom operators from postpaid and prepaid services, cumulatively.

Simultaneously, the net revenue of the sector has shown a year-on-year increase of 18.1 percent, reaching around Rs 633,000 crore, with a 6.2 percent rise in intercompany settlements. The intercompany settlements include roaming charges and international interconnect usage charges, settled among operators and partner global carriers. It is calculated in terms of the difference between gross revenue and adjusted gross revenue from mobile services.

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Overall Figures 

“In Q4FY25, consumer spending on mobile services (post-GST) rose 1.1 percent QoQ/17.6 percent YoY to INR 658bn, aided by tariff hikes. Net revenue grew 0.8 percent QoQ/18.1 percent YoY to INR 633bn. Post-paid net revenue was up 1 percent QoQ/9.4 percent YoY, as benefits show with a lag. Prepaid net revenue rose 0.7 percent QoQ/19 percent YoY, as ARPU (average revenue per user) increased 0.9 percent QoQ/21.1 percent YoY to INR 183,” ICICI Securities said in a report.

Data Services

Overall consumer spending on data services rose 1.2 percent quarter-on-quarter to ₹56,719.5 crore, fueled by growing 5G data usage. Data services accounted for 86.2 percent of total telecom spending, while voice and other services made up the remaining 13.8 percent, according to TRAI data.

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While overall data usage showed a quarter-on-quarter increase of 4.3 percent, 5G registered a surge of 18.1 percent, while 4G registered a decline of 5 percent, 2G of 14 percent, and 3G of 28.1 percent. Simultaneously, Reliance Jio and Bharti Airtel have shown significant growth in customer upgrades to 5G services. 

Reliance Jio maintained its lead in data usage, capturing 48.7 percent of the market—an increase of 141 basis points from the previous quarter. Bharti Airtel held a 35.5 percent share (up 5 basis points), while Vodafone Idea accounted for 10.4 percent (up 9 basis points).