Forecast: India comms revenue to grow 5.8% CAGR
June 21, 2022
The total fixed communication services revenue in India is expected to increase at a compound annual growth rate (CAGR) of 5.8 per cent from $7.4 billion (€7bn) in 2021 to $9.8 billion in 2026, mainly driven by the strong growth in the fixed broadband segment, forecasts GlobalData, a data and analytics company.
GlobalData’s India Fixed Communications Forecast (Q1 2022), reveals that fixed voice services revenue will decline at a CAGR of 4.9 per cent over 2021-2026, owing 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.
Srikanth Vaidya, Telecom Analyst at GlobalData, commented: “Fixed broadband services revenue, on the other hand, will increase at a CAGR of 7.5 per cent during 2021-2026, driven by the solid growth in broadband subscriptions, especially fibre broadband, and increasing broadband ARPU levels.”
GlobalData is optimistic about India’s fixed broadband services outlook and estimates fibre optic lines to hold over 75 per cent of total broadband lines in 2026, supported by the government and operator investments on fibre network infrastructure and FTTH service expansions. As a result, fibre optic service revenue is expected to grow at a CAGR of 12.1 per cent between 2021 and 2026.
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 fibre broadband service segment and efforts to upgrade its FTTH network. The operator’s promotional offers on its broadband plans are expected to help the company maintain its leadership in the market over the forecast period.
Vaidya concluded: “Rising demand for high-speed internet services and competitively priced fibre broadband plans from operators with benefits like unlimited internet and access to major SVoD platforms are expected to drive fibre broadband service adoption in India during the forecast period.”