India’s fixed communication revenue to grow to $13.2 bn in 2028 vs $11.5 bn in 2023: GlobalData

Revenue from fixed communication services in India is expected to grow at a rate of 2.9% compounded annually, to $13.2 billion 2028 from $11.5 billion in 2023, driven by fixed broadband services, a report said.

According to a GlobalData report out Thursday, revenue from fixed broadband services will grow at a CAGR of 3.5% in the 2023-2028 period, driven by a growth in broadband subscription and higher average revenue per user (ARPU) from fiber broadband.

This, even as revenue from fixed voice services is set to decline at a CAGR of 4% over the five-year period, in line with the decline in fixed voice ARPU levels as users increasingly adopt mobile/OTT-based communication services, and operators offer free voice minutes with their fixed bundled plans, the report said.

Reliance Jio is expected to lead the country’s fixed broadband services market in terms of subscription share in the 2023-2028 period, supported by its strong position in the growing fiber broadband service segment and efforts to upgrade its FTTH network, GlobalData said.

“Promotional offers on its broadband plans are expected to help the company maintain its leadership in the market over the forecast period,” the report said.

The report added that fiber optic lines are expected to hold over 80% of the total broadband traffic lines by 2028 as operators expand their FTTH (Fiber to the Home) footprint along with government investments in BharatNet.

As a result, fiber optic service revenue is expected to grow at a CAGR of 4% between 2023 and 2028, it said.

“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,” said Shrikant Vaidya, telecom analyst at GlobalData.