The fixed communication services revenue in India is predicted to grow from $10.2 billion in 2022 to $13.9 billion in 2027, according to GlobalData.
The compound annual growth rate (CAGR) of 6.4 percent in fixed communication services revenue in India will be primarily driven by the fixed broadband segment’s strong growth.
Fixed voice services revenue in India is expected to decline at a CAGR of 1 percent due to a reduction in circuit switched subscriptions and a decrease in fixed voice average revenue per subscriber (ARPU) levels as users adopt OTT-based communication services and operators offer free voice minutes with their fixed bundled plans.
Fixed broadband services revenue in India is expected to grow at a CAGR of 7.3 percent from 2022 to 2027. This growth will be driven by the increase in broadband subscriptions, particularly fiber broadband, and an increase in broadband ARPU levels.
Fiber optic lines will hold over 85 percent of total broadband lines in 2027, thanks to the government’s investments in fiber network infrastructure and operators’ FTTH service expansions. Fiber optic service revenue is expected to grow at a CAGR of 9.2 percent between 2022 and 2027.
Reliance Jio has launched its most affordable fixed broadband plan starting at Rs 198 / month, with generous entertainment bundling at Rs 100, and Rs 200 / month additional payment.
Reliance Jio is expected to lead India’s fixed broadband services market in terms of subscription share over the forecast period, supported by its strong position in the fiber broadband service segment and efforts to upgrade its FTTH network. Jio’s promotional offers on its broadband plans are anticipated to help maintain its leadership position in the market.
Jio has a target to reach 50 million FTTH connections, and had only 7.7 million FTTH subscribers as on December 2022.
Jio’s new home broadband plan at Rs 198 per month for a 10 Mbps speed provides an option to upgrade speed (from 10 Mbps to 30 / 100 Mbps) and add an entertainment package (Rs100/200 per month). The plan comes with a price point of Rs 1,490 for five month service (Rs 990 for service and Rs 500 for installation), exclusive of GST. The entertainment package can be added to the new home broadband back-up plan and is for new users only.
The demand for high-speed internet services and fiber broadband plans from mobile operators offering unlimited internet and access to major SVoD platforms is expected to drive fiber broadband service adoption in India.