According to a report by GlobalData, mobile data service revenue is expected to grow at a compound annual growth rate (CAGR) of 8.1 per cent during 2022-2027, even as mobile voice revenue drops on the back of users increasingly shifting to over-the-top (OTT) communications platforms.
The report further noted that total revenue from telecom and pay-TV services in India is expected to rise at CAGR of 3.1 per cent from $42.3 billion in 2022 to $44.9 billion in 2027, driven primarily by mobile data and fixed broadband segments.
According to the report, Reliance Jio is anticipated to maintain its lead during the forecast year due to its competitively priced 4G packages and the increased pace of its ongoing 5G service growth. Further, 5G subscriptions will grow at a faster rate over the forecast period, driven by the rising demand for and increasing availability of high-speed 5G services in the country as telcos expand their 5G networks across the country.
As per the report, mobile data service revenues will grow at an 8.1 per cent CAGR over the forecast period, driven by continued smartphone adoption, growing mobile internet subscriptions, and increased consumption of mobile data services as the 4G subscriber base expands and the adoption of higher average revenue per user (ARPU) 5G services increases.
In a fixed communication services segment, fixed voice service revenue (landline) will decline over the forecast period due to steady losses in circuit-switched subscriptions and declining fixed voice ARPU. Meanwhile, fixed broadband service revenues will grow at a CAGR of 6.1 per cent between 2022-27, reflecting the steady increase in fixed broadband subscriptions, particularly over fiber-to-the-home (FTTH).
Furthermore, Pay-TV revenues are also expected to suffer decline over 2022-27 due to the increasing adoption of OTT services, in this case video streaming platforms, as high-speed internet becomes widely available over time. However, Jio’s dominance over the telecom market is expected to remain unchallenged through to 2027, the report added.