"India has crossed one billion internet subscribers, yet rural tele-density remains near 60%. Analyse the causes of the persistent rural–urban digital divide and suggest measures." (15 m)
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TRAI's Yearly Performance Indicators 2025-26 count 1,092.79 million internet subscribers. Yet urban tele-density is 151.47%, while rural tele-density is only 60.46% [1]. Rural subscriptions grew just 3.20%, against 16.92% in urban areas [1]. The divide is widening, and it now comes more from low adoption than from missing coverage.
Causes of the Divide
- Coverage without uptake: about 98% of villages have 4G coverage [2]. Still, rural tele-density rose only from 59.06% to 60.46% [1]. The towers have arrived, but the users have not.
- Idle infrastructure: CAG found that only 17.91% of BharatNet bandwidth was in use [3]. BharatNet funds have been underused every year since 2022-23 [4].
- Slow delivery, not lack of money: ₹86,356 crore of USOF collections were unspent between 2002-03 and December 2024 [3].
- Affordability squeeze: revenue per GB fell to ₹8.02 and ARPU growth slowed to 3.59% [1]. Thin margins push operators towards higher tariffs, and price-sensitive rural users are hit first.
- Weak public operator: about 41% of the Department of Telecommunications (DoT) budget goes to reviving loss-making BSNL/MTNL [4].
- Social barriers: the cost of a handset, low digital literacy and gender norms keep poor households and women offline.
- Counting distortion: FY26 figures include Airtel's M2M SIMs (machine connections), so headline growth overstates how many people are connected [1].
Measures
- Fix the count: TRAI should require every operator to report M2M and human subscriptions separately, by circle and by rural/urban area [1].
- Pay for use, not cable: link BharatNet payments to active connections and uptime, not kilometres of fibre laid [3].
- Spend Digital Bharat Nidhi: the Telecommunications Act, 2023 renamed USOF as Digital Bharat Nidhi and widened its scope to include R&D [5]. The unspent money should be released against rural adoption targets [3].
- Boost demand: support handset purchases, set up community access points and run SHG-led digital-literacy drives for women.
- Protect affordability: TRAI's tariff powers can be used to keep low-cost entry plans available as tariffs rise.
India's connectivity challenge has moved from laying networks to turning coverage into real use. BharatNet contracts tied to outcomes, full use of Digital Bharat Nidhi and support on the demand side can turn a billion subscriptions into real inclusion. This would advance SDG 9.c, which calls for universal, affordable internet access.
Sources
- 1PIB – TRAI, The Indian Telecom Services Yearly Performance Indicators 2025-26 (05 Oct 2026)internet subscribers, urban/rural tele-density and growth, ARPU, revenue per GB, Airtel M2M revision
- 2PIB – 2025 Year End Review, Department of Telecommunications4G coverage of villages
- 3CAG Audit Report No. 19 of 2026 – Performance Audit on BharatNet17.91% bandwidth use; ₹86,356 crore USOF unspent
- 4PRS – Demand for Grants 2026-27 Analysis: TelecommunicationsBharatNet funds underused since 2022-23; ~41% of budget to BSNL/MTNL revival
- 5PRS – The Telecommunications Bill, 2023USOF renamed Digital Bharat Nidhi, scope widened to R&D