Total fixed communication services revenue in India is expected to increase at a compound annual growth rate (CAGR) of 6.4% from US$10.2 billion in 2022 to US$13.9 billion in 2027, mainly driven by the strong growth in the fixed broadband segment. That’s the view of data and analytics company GlobalData in its India Fixed Communications Forecast (Q1 2023).
The report points out that fixed voice services revenue will, in fact, decline at a CAGR of 1% over 2022-2027, owing to the drop in circuit switched subscriptions and a decline in fixed voice average revenue per subscriber (ARPU) levels as users increasingly adopt OTT-based communication services, and operators include free voice minutes with their fixed bundled plans.
However, according to Srikanth Vaidya, Telecom Analyst at GlobalData, fixed broadband services revenue will increase at a CAGR of 7.3% during 2022-2027, “driven,” he says, “by the solid growth in broadband subscriptions, especially fibre broadband, and increasing broadband ARPU levels”.
GlobalData says it is optimistic about India’s fixed broadband services outlook and estimates fibre optic lines to hold over 85% of total broadband lines in 2027, supported by government investments in fibre network infrastructure and operators’ FTTH service expansions. As a result, fibre optic service revenue is expected to grow at a CAGR of 9.2% between 2022 and 2027.
Not too surprisingly perhaps, Reliance Jio is set to lead the country’s fixed broadband services market in terms of subscription share over the forecast period, supported by its strong position in the growing fibre broadband service segment and efforts to upgrade its FTTH network. The operator’s promotional offers on its broadband plans are expected to help the company maintain its leadership in the market over the forecast period.
Vaidya concludes: “Rising demand for high-speed internet services and competitively priced fibre broadband plans from operators, with benefits like unlimited internet and access to major SVoD platforms, are expected to drive fibre broadband service adoption in India during the forecast period.”