Indian Economy News

India's fixed communication revenue to grow to US$ 13.2 billion in 2028 vs US$ 11.5 billion in 2023: GlobalData

  • IBEF
  • April 1, 2024

A report by GlobalData predicts that revenue from fixed communication services in India will experience a compounded annual growth rate (CAGR) of 2.9%, reaching US$ 13.2 billion by 2028 from US$ 11.5 billion in 2023. Fixed broadband services are anticipated to be the main driver, with revenue growing at a CAGR of 3.5% during 2023-2028, propelled by increased broadband subscriptions and higher average revenue per user (ARPU) from fiber broadband. However, revenue from fixed voice services is projected to decline at a CAGR of 4% over the same period due to decreasing fixed voice ARPU levels as users shift towards mobile/OTT-based communication services.

Reliance Jio is expected to dominate the fixed broadband services market in terms of subscription share from 2023 to 2028, supported by its strong presence in the fiber broadband service segment and efforts to enhance its Fiber to the Home (FTTH) network. The report also suggests that fiber optic lines will account for over 80% of total broadband traffic lines by 2028, driven by the expansion of FTTH infrastructure by operators and government investments in BharatNet. Consequently, revenue from fiber optic services is forecasted to grow at a CAGR of 4% between 2023 and 2028. Mr. Shrikant Vaidya, a telecom analyst at GlobalData, highlights that the increasing demand for high-speed internet services and competitively priced fiber broadband plans, offering benefits like unlimited internet and access to major Subscription Video on Demand (SVoD) platforms, will propel the adoption of fiber broadband services in India in the coming years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.