According to a report by GlobalData, the total fixed communication services revenue in India is expected to reach increase at a compound annual growth rate (CAGR) of 6.4 per cent from $10.2 billion in 2022 to $13.9 billion in 2027, mainly driven by the strong growth in the fixed broadband segment.
GlobalData’s India Fixed Communications Forecast (Q1 2023) reveals that fixed voice services revenue will decline at a CAGR of 1 per cent over 2022-2027, owing to the drop in circuit switched subscriptions and a decline in fixed voice average revenue per user (ARPU) levels as users increasingly adopt over-the-top (OTT)-based communication services, and operators include 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 7.3 per cent during 2022-2027, driven by the solid growth in broadband subscriptions, especially fibre broadband, and increasing broadband ARPU levels.”
GlobalData is optimistic about India’s fixed broadband services outlook and estimates fibre optic lines to hold over 85 per cent of total broadband lines in 2027, supported by 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 9.2 per cent between 2022 and 2027.
As per the study, 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 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 SVoD platforms are expected to drive fibre broadband service adoption in India during the forecast period.”
