The revenue from fixed communication services in India is projected to experience steady growth, with a compound annual growth rate (CAGR) of 2.9% from $11.5 billion in 2023 to $13.2 billion by 2028. This growth is primarily attributed to the increasing demand for fixed broadband services, as highlighted in a report by GlobalData.
Specifically, revenue from fixed broadband services is anticipated to grow at a higher CAGR of 3.5% during the 2023-2028 period. This growth is driven by the expansion of broadband subscriptions and an increase in average revenue per user (ARPU) from fiber broadband services.
Conversely, revenue from fixed voice services is expected to decline at a CAGR of 4% over the same period. This decline is attributed to decreasing fixed voice ARPU levels, as consumers increasingly opt for mobile and over-the-top (OTT) communication services. Additionally, operators are offering free voice minutes as part of their fixed bundled plans.
Reliance Jio is forecasted to lead the fixed broadband services market in India, primarily due to its strong position in the fiber broadband segment and ongoing efforts to enhance its FTTH (Fiber to the Home) network. The company's promotional offers on broadband plans are expected to sustain its market leadership.
The report also predicts that fiber optic lines will dominate over 80% of total broadband traffic lines by 2028, driven by expansions in FTTH infrastructure and government investments in initiatives like BharatNet. Consequently, revenue from fiber optic services is projected to grow at a CAGR of 4% between 2023 and 2028.
The rising demand for high-speed internet services, coupled with competitively priced fiber broadband plans offering benefits like unlimited internet access and access to major streaming platforms, is expected to drive the adoption of fiber broadband services in India during the forecast period.
