According to a recent report published by Counterpoint Research, the mass adoption of 5G networks in India is slowing down due to inconsistent network coverage and the lack of affordable 5G-enabled mobile phones.
5G was introduced in India on October 1, 2022, but is yet to see large-scale adoption in the country. In fact, rating agency CRISIL has predicted that only one-third of the country may adopt 5G by March, 2025.
“There’s still a long way to go, especially in terms of network coverage,” Tarun Pathak, Research Director at Counterpoint, said.
The report further emphasised that the lack of awareness about the use case of 5G and the limited availability of 5G-supported phones priced below ₹10,000 as two major factors behind the slow adoption of 5G.
This is similar to the CRISIL report in March, which said that the high cost of 5G smartphones and the already extensively available 4G network – which fulfils the needs of most users – as the reasons for the slow adoption of 5G.
“While the share of 5G smartphone shipments will improve gradually, the low initial value proposition and high cost of the gadget versus a 4G phone would restrict overall 5G adoption to 300 million users by fiscal 2025,” Naveen Vaidyanathan, director, CRISIL Ratings, said.
Despite the delayed adoption, the Counterpoint report highlighted the promising future of the 5G economy in the country.
The report highlighted that the sale of 5G handsets in the country crossed the 100 million mark for the first time in May 2023. 5G-enabled smartphones accounted for 4% of all smartphone sales below ₹20,000; this has increased to 14% in 2022.
“The 5G penetration will continue to increase with multiple launches and high demand for 5G phones among consumers, ahead of the upcoming festive season,” Shilpi Jain, senior analyst at Counterpoint, said.
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