Categories: Economy

India’s Fixed Broadband Market to Drive Communication Services Revenue Growth

India’s Fixed Communication Services Predicted to Grow at 6.4% CAGR

A recent report by GlobalData suggests that the fixed communication services revenue of India is set to experience a compound annual growth rate (CAGR) of 6.4%, with an estimated increase 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 forecasts a decline in fixed voice services revenue, which is expected to drop at a CAGR of 1 per cent over 2022-2027. 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. GlobalData predicts that fibre optic lines will 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 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 its broadband plans are expected to support its position as it leads 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 growth will be mainly driven by the fixed broadband segment, which is expected to see solid growth in broadband subscriptions, especially fibre broadband. 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.

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Mahesh Kumar

Working as an SEO Manager at Adda247, I bring over 10 years of experience in Search Engine Optimization (SEO) and digital marketing. I specialize in driving organic growth through data-driven strategies, including keyword research, on-page SEO, off-page optimization, and technical SEO. My area of expertise in the EdTech sector, specifically focusing on competitive exams such as Bank, SSC, Railway, UPSC, and various State Government job examinations.

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