India’s fixed communication services revenue is anticipated to experience a steady rise, reaching $13.2 billion by 2028, GlobalData said.
This growth, representing a compound annual growth rate (CAGR) of 2.9 percent, is primarily attributed to the flourishing fixed broadband business in India.
Fixed voice services revenue in India is expected to decline at a CAGR of 4 percent between 2023 and 2028.
The shift towards mobile and over-the-top (OTT) communication services among users, coupled with operators offering complimentary voice minutes within bundled plans, is driving the decline in ARPU of fixed voice operators in India.
The forecast indicates a CAGR of 3.5 percent for fixed broadband services revenue during the same period. This growth is fueled by an uptick in broadband subscriptions, particularly in the fiber broadband segment, alongside an increase in broadband ARPU levels.
By 2028, GlobalData predicts that fiber optic lines will dominate over 80 percent of India’s total broadband lines. This trend is underpinned by substantial government investments in fiber network infrastructure and expansions in Fiber-To-The-Home (FTTH) services by operators. Consequently, revenue from fiber optic services is expected to grow steadily at a CAGR of 4 percent from 2023 to 2028.
Reliance Jio is poised to lead India’s fixed broadband services market in terms of subscription share throughout the forecast period. Reliance Jio’s strong foothold in the burgeoning fiber broadband service segment, coupled with its initiatives to enhance its FTTH network, position it favorably. Reliance Jio’s strategic promotional offers on broadband plans are anticipated to sustain its market leadership in the foreseeable future.
The surge in demand for high-speed internet services, combined with competitively priced fiber broadband plans offered by operators, featuring benefits such as unlimited internet and access to major Streaming Video on Demand (SVoD) platforms, is projected to drive the adoption of fiber broadband services in India over the forecast period.
