GlobalData Says Fixed Broadband Could Boost Fixed Communications Service Revenues in India

Total fixed communications services revenue in India is expected to grow at a compound annual growth rate (CAGR) of 6.4% from $10.2 billion in 2022 to $13.9 billion in 2027, driven by strong growth in the fixed broadband segment. That's the view of data and analytics firm GlobalData in its India Fixed Communications Forecast (Q1 2023).
The report notes that fixed voice service revenues will actually decline at a CAGR of 1% between 2022 and 2027 due to a decline in circuit-switched subscriptions and lower levels of average revenue per user (ARPU) for subscribers' fixed voice Increasing adoption of OTT-based communications services, operators are including free voice airtime in their fixed bundle plans.
However, according to GlobalData's telecom analysts, fixed broadband service revenues will grow at a CAGR of 7.3% between 2022 and 2027, driven by solid growth in broadband subscriptions, particularly fiber broadband, and increasing broadband ARPU levels.
GlobalData said it is optimistic about the outlook for fixed broadband services in India and estimates that fiber optic lines will account for more than 85% of total broadband lines by 2027, driven by government investment in fiber optic network infrastructure and expansion of FTTH services by operators. As a result, fiber optic service revenues are expected to grow at a CAGR of 9.2% between 2022 and 2027.
Reliance Jio is expected to lead the country's fixed broadband services market in terms of subscription share during the forecast period, thanks to its strong position in the growing fiber optic broadband services 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 position in the market during the forecast period.
Growing demand for high speed internet services and competitively priced fiber optic broadband plans with advantages such as unlimited internet and access to major SVoD platforms are expected to drive the adoption of fiber optic broadband services in India during the forecast period.