India’s digital transition has been nothing short of transformative, with 5G subscriptions projected to triple to 970 million by 2030, according to an Ericsson report (IBEF, 2024). Yet, amidst this rapid advancement, a significant portion of the population remains tethered to 2G networks. Approximately 300 million Indians still rely on 2G connectivity, primarily from low-income, rural, and marginalized communities. For these users, the transition to 4G or 5G is not just a matter of upgrading technology—it is a complex issue intertwined with affordability, accessibility, and socio-economic disparities.
Affordability: A major barrier
Affordability remains one of the most significant hurdles preventing 2G users from transitioning to 4G or 5G. While telecom providers like Reliance Jio have made strides in offering low-cost 4G-enabled devices, such as the Jio Phone, the reality is that even subsidized smartphones and data plans are out of reach for many. For households at the bottom of the economic pyramid, a smartphone is often a luxury, not a necessity.
The cost of owning a 4G-enabled device goes beyond the initial purchase. Data plans, app subscriptions, and the need for regular upgrades add to the financial burden. For millions of low-income users, 2G phones are not just a means of communication but a lifeline for basic connectivity. Forcing a transition without addressing these affordability concerns risks disconnecting 20-30% of these users, exacerbating the digital divide.
Digital divide and infrastructure gaps
Access to reliable 4G and 5G networks is another critical issue, particularly in rural and remote areas. While urban centers enjoy robust connectivity, many rural regions still struggle with poor or nonexistent 4G coverage. In such areas, 2G remains the only viable option for mobile connectivity.
For example, in states like Bihar, Jharkhand, and parts of Uttar Pradesh, where infrastructure development lags, 2G networks are crucial for basic communication. Farmers, small traders, and migrant workers in these regions rely on 2G for voice calls and SMS services, which are essential for their livelihoods. Without significant investment in rural infrastructure, a forced transition to 4G or 5G would leave these communities further marginalized.
Gender disparities in connectivity
The digital gender divide further complicates the transition. In many households, women are often given basic 2G phones, which are primarily used for calling and tracking rather than for economic or functional activities. These devices are seen as sufficient for their perceived needs, reinforcing gender inequalities in digital access.
A hasty shift away from 2G without gender-sensitive policies could deepen this divide. Women, who already face barriers to digital literacy and access, would be disproportionately affected, limiting their ability to participate in the digital economy and access essential services.
The role of essential services in driving transition
One of the most pressing reasons for transitioning to 4G and 5G is the increasing digitization of essential services. Education, e-governance, financial transactions, and entitlement access are rapidly moving online, leaving 2G users at a significant disadvantage. For instance, India’s Unified Payments Interface (UPI), a cornerstone of digital and financial inclusion, does not function effectively on 2G networks. Transaction failures and financial losses are common, further marginalizing those who rely on older networks.
The inability to access these services not only limits economic opportunities but also reinforces existing inequalities. For meaningful participation in the digital economy, reliable 4G and 5G connectivity is essential. However, without addressing the barriers to adoption, millions risk being left behind.
Telcos’ efforts: A mixed bag
Telecom providers have made some efforts to ease the transition. Reliance Jio’s Jio Phone initiative, for example, aimed to bridge the gap by offering affordable 4G-enabled devices. While this strategy has had some success, it has not been a comprehensive solution. Many users still cannot afford even subsidized devices, and infrastructure gaps in rural areas remain a persistent challenge.
Moreover, Jio’s push to phase out 2G entirely is driven by its business interests, as its network infrastructure is exclusively 4G and 5G. While this approach aligns with the company’s growth strategy, it risks leaving millions of users disconnected if implemented prematurely. The lack of a robust safety net for those unable to transition could lead to greater digital exclusion.
How do we balance growth and equity?
India’s digital transformation must be inclusive to be truly transformative. A hasty transition to 4G and 5G risks deepening inequalities, while a gradual, well-planned shift can enable millions to integrate meaningfully into the digital economy. Policymakers and stakeholders must prioritize the following:
1. Subsidized smartphones and data plans must be complemented with financial incentives and support for low-income users. Public-private partnerships can play a crucial role in making devices and services more accessible.
2. Expanding 4G and 5G coverage to rural and remote areas is essential. Investments in infrastructure must be prioritized to ensure that no region is left behind.
3. Addressing the digital gender divide requires targeted interventions, such as digital literacy programs and initiatives to provide women with affordable, functional devices.
4. A forced digital transition to 4G and 5G is not the answer. Instead, a phased approach that allows users to adapt gradually, supported by education and infrastructure development, is key to ensuring inclusivity.
5. Digital literacy campaigns in hyperlocal settings can empower citizens to make informed decisions about transitioning to newer technologies, ensuring that they can fully leverage the benefits of 4G and 5G.
The exclusion of 2G users in a 5G world
The challenges faced by 2G users go beyond being left behind—they are being left excluded. In today’s digital landscape, the benchmark for meaningful access has shifted to a minimum of 4G connectivity. Essential services, from online education and healthcare to digital payments and e-governance, are increasingly designed for higher-speed networks. This upending of the digital access threshold means that even if 2G users are technically “connected,” they are effectively locked out of the digital economy and society.
For instance, a farmer with a 2G phone may have network coverage but cannot access real-time market prices or digital payment systems, which are critical for their livelihood. Similarly, a student in a rural area may have a phone but cannot participate in online classes or access educational resources that require faster internet speeds. This lack of meaningful access perpetuates cycles of poverty and exclusion, as 2G users are unable to leverage digital tools for economic, educational, or social advancement.
The exclusion of 2G users is not just a technological issue—it is a systemic failure that reinforces inequality. Without addressing this gap, India’s digital transformation will remain incomplete, leaving millions stranded on the wrong side of the digital divide. In the next column, we will delve deeper into the concept of meaningful access and examine the persistent and widening forms of exclusion in an increasingly digital world.
Osama Manzar is the Founder-Director of Digital Empowerment Foundation and Dr. Arpita Kanjilal heads the Research & Advocacy Division of DEF.
