India’s fixed communication revenue to reach $13.2 billion by 2028

The total fixed communication services revenue in India is expected to increase at a compound annual growth rate (CAGR) of 2.9% from $11.5 billion in 2023 to $13.2 billion in 2028, mainly driven by the healthy growth in the fixed broadband segment, forecasts GlobalData, a leading data and analytics company.

GlobalData’s India Fixed Communications Forecast (Q4 2023) reveals that fixed voice services revenue will decline at a CAGR of 4% over 2023-2028, in line with the decline in fixed voice average revenue per subscriber (ARPU) levels as users increasingly adopt mobile/OTT-based communication services, and operators offer free voice minutes with their fixed bundled plans.

Srikanth Vaidya, Telecom Analyst at GlobalData, comments: “Fixed broadband services revenue, on the other hand, will increase at a CAGR of 3.5% during 2023-2028, driven by the growth in broadband subscriptions, especially fiber broadband, and higher broadband ARPU levels.”

GlobalData is optimistic about India’s fixed broadband services outlook and estimates fiber optic lines to hold over 80% of the total broadband lines in 2028, supported by the government investments in fiber network infrastructure and operators’ FTTH service expansions. As a result, fiber optic service revenue is expected to grow at a CAGR of 4% between 2023 and 2028.

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 fiber 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 concludes: “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.” GlobalData