Poor telecom service is causing problems for digital payments and online banking, affecting 4 out of 10 people over the past year. A survey by LocalCircles found that 58% of people experienced network disruptions multiple times a month, affecting 3G, 4G, and 5G networks.
This issue is significant, and the Telecom Regulatory Authority of India (Trai) is considering setting new standards to improve telecom service quality and network coverage. LocalCircles shared the survey results with Trai, urging them to improve connectivity to ensure stable financial transactions.
LocalCircles stated, “Trai needs to work with telecom operators to improve service quality so digital financial transactions aren’t disrupted.” As cash use declines and banks charge fees for cash transactions, reliable digital connectivity is essential across the country. The survey findings will be shared with stakeholders, including the Ministry of Electronics and IT, Trai, and the Reserve Bank of India.
The survey had over 39,000 responses from consumers in 329 districts of India, with 64% men and 36% women. Respondents included 44% from tier-1 cities, 34% from tier-2, and 22% from tier 3 and 4.
LocalCircles noted a slight improvement in mobile data connectivity, with disruptions during financial transactions dropping from 68% to 58% in two years. However, the improvement is not enough, and there is an urgent need to address network issues that disrupt digital payments.
In 2022, 92% of people surveyed faced frequent disruptions or slow speeds when making digital transactions with mobile data, which decreased to 75% in 2024. Current issues include stalled or failed transactions due to poor network connectivity.
Another recent survey by LocalCircles found that 89% of 32,000 people across India experienced call disconnections and drops, with 38% saying more than 20% of their calls were dropped. These issues have forced users to rely on internet or Wi-Fi calls over the past two years.
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