Despite the launch of Reliance’s 5G broadband service, Reliance Air Fibre, in September, data from the Telecom Regulatory Authority of India (TRAI) reports a decline in subscription rates for fixed wireless broadband in September and October.
According to TRAI, the monthly growth rate for fixed wireless subscribers was -2.51% in September and -1.24% in October, contrasting with a positive growth rate of 2.82% reported in August. 5G broadband service utilizes mm-wave spectrum to offer broadband-like internet services to households, deviating from traditional optic fibre cables. However, the adoption of 5G has been limited as most users currently find 4G sufficient at a lower cost.
Reliance believes its Air Fibre service will revolutionize the Indian fixed broadband market, particularly in regions where laying traditional optic fibre cables is challenging. Despite this, a senior executive at a rival telecom operator expressed skepticism, stating that fixed wireless broadband through 5G cannot replace traditional optic fibre connectivity, which is expected to drive most of the market’s growth. This situation results in a larger-than-anticipated shortage of monetizable 5G use cases.
Currently, only 0.95 million subscribers use fixed wireless broadband services in India, compared to 37.35 million fixed wireline broadband subscribers. Additionally, a TRAI report revealed that Bharti Airtel lost 1.2 million active subscribers in October, marking the highest monthly loss in 17 months. Out of the total 378.13 million subscribers, the company’s active subscribers at the end of October were 374.96 million, reflecting a loss of 1.2 million from the previous month.
