Fixed communication service revenue in India to grow to $13.9 billion in 2027: GlobalData

India’s fixed communication service revenue is expected to grow at a CAGR of 6.4%, rising from $10.2 billion in 2022 to $13.9 billion in 2027, mainly driven by the fixed broadband segment, GlobalData has forecasted.

The research firm, in a report released Wednesday, has also said that the fixed voice services revenue will decline at a CAGR of 1% during the forecast period (2022–27).

GlobalData attributed the decline in fixed voice services revenues to the drop in circuit-switched subscriptions and a decline in fixed voice average revenue per subscriber (ARPU) levels as users increasingly adopt OTT-based communication services, and operators include free voice minutes with their fixed bundled plans.

“Fixed broadband services revenue, on the other hand, will increase at a CAGR of 7.3% during 2022-2027, driven by the solid growth in broadband subscriptions, especially fiber broadband, and increasing broadband ARPU levels,” said Srikanth Vaidya, Telecom Analyst at GlobalData.

The research firm has predicted that fiber optic lines will account for over 85% of total broadband lines in 2027, on account of the government’s investments in fiber network infrastructure and operators’ FTTH service expansions.

As a result, GlobalData said that the fiber optic service revenue is expected to grow at a CAGR of 9.2% between 2022 and 2027.

Reliance Jio is set to lead the country’s fixed broadband services market in terms of subscription share over the forecast period, supported by its strong position in the growing fiber broadband service segment and efforts to upgrade its FTTH network, as per the research firm.

“Rising demand for high-speed internet services and competitively priced fiber broadband plans from operators with benefits like unlimited internet and access to major SVoD platforms are expected to drive fiber broadband service adoption in India during the forecast period,” Vaidya concluded.