India’s Fixed Broadband Market to Drive Communication Services Revenue Growth
India’s Fixed Communication Services Predicted to Grow at 6.4% CAGR: According to a recent GlobalData report, India’s fixed communication services revenue is expected to grow at a compound annual growth rate (CAGR) of 6.4%, rising from $10.2 billion in 2022 to $13.9 billion in 2027. The growth will be mainly driven by the fixed broadband segment, which is predicted to see solid growth in broadband subscriptions, especially fibre broadband. The study also predicts a drop in fixed voice services revenue, which is expected to fall at a 1% CAGR between 2022 and 2027. This is due to the decrease in circuit-switched subscriptions and a decline in fixed voice ARPU levels.
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Fibre Broadband to Lead India’s Fixed Broadband Segment Growth
The report suggests that the demand for high-speed internet services and competitively priced fibre broadband plans will drive fibre broadband service adoption in India during the forecast period. According to GlobalData, fibre optic lines will account for more than 85% of total broadband lines by 2027, thanks to government investments in fibre network infrastructure and operator fiber-to-the-home service expansions. The report projects that there will be a compound annual growth rate (CAGR) of 9.2% in fibre optic service revenue between the years 2022 and 2027.
Fixed Voice Services Revenue Expected to Decline in India
The report suggests that Reliance Jio is expected to remain at the forefront of the fixed broadband services market in India during the forecast period. The operator’s promotional offers on broadband plans are expected to help it maintain its lead in terms of subscription share. The report also indicates that operators include free voice minutes with their fixed bundled plans.
Reliance Jio to Dominate India’s Fixed Broadband Market
In conclusion, GlobalData’s India Fixed Communications Forecast (Q1 2023) predicts that the fixed communication services revenue in India will grow at a CAGR of 6.4 per cent from $10.2 billion in 2022 to $13.9 billion in 2027. The fixed broadband segment, which is expected to see solid growth in broadband subscriptions, particularly fibre broadband, will drive the growth. However, fixed voice services revenue is predicted to decline over the same period. The report also predicts that fibre optic lines will hold over 85 per cent of total broadband lines in 2027, with Reliance Jio leading the country’s fixed broadband services market.