According to India fixed communications forecast (Quarter 4 2023) report by GlobalData, total fixed communication services revenue in India is expected to increase at a compound annual growth rate (CAGR) of 2.9 per cent, from $11.5 billion in 2023 to $13.2 billion in 2028, mainly driven by healthy growth in the fixed broadband segment.
The report reveals that fixed voice services revenue will decline at a CAGR of 4 per cent over 2023-2028, in line with the decline in fixed voice average revenue per subscriber (ARPU) levels as users increasingly adopt mobile/ over-the-top (OTT) -based communication services, and operators offer free voice minutes with their fixed bundled plans.
Commenting on the report, Srikanth Vaidya, telecom analyst, GlobalData, said, “Fixed broadband services revenue, on the other hand, will increase at a CAGR of 3.5 per cent during 2023-2028, driven by the growth in broadband subscriptions, especially fibre broadband, and higher broadband ARPU levels.”
GlobalData is optimistic about India’s fixed broadband services outlook and estimates fibre optic lines to hold over 80 per cent of the total broadband lines in 2028, supported by the government investments in fibre network infrastructure and operators’ fibre to the home (FTTH) service expansions. As a result, fibre optic service revenue is expected to grow at a CAGR of 4 per cent between 2023 and 2028.
The report also states that 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.
Srikanth Vaidya added, “Rising demand for high-speed internet services and competitively priced fibre broadband plans from operators with benefits like unlimited internet and access to major subscription video-on-demand (SVoD) platforms are expected to drive fibre broadband service adoption in India during the forecast period.”
