The spotlight is on India’s fixed broadband market, with top mobile service providers, Reliance Jio and Bharti Airtel, shifting their focus as the demand for high-quality internet continues to surge. According to a recent report by GlobalData, India’s fixed communication services revenue is projected to grow from $10.2 billion in 2022 to $13.9 billion by 2027, largely propelled by the fixed broadband sector.
The need for high-speed, reliable internet access has surged in both residential and commercial settings in India. The onset of the COVID-19 pandemic brought about a rapid increase in the demand for quality fixed broadband. Recognizing the growing importance of connectivity, the government increased the minimum broadband speed from 512 Kbps to 2 Mbps in 2022. Furthermore, the government introduced right-of-way guidelines and policies to empower telecom companies to expedite fiber deployment across the nation.
As of July 2023, Jio reported 9.4 million wired broadband subscribers, up from 6.56 million in August 2022. Airtel, on the other hand, had 6.7 million subscribers in July 2023, compared to 5.13 million in August 2022, as per data from the Telecom Regulatory Authority of India (TRAI).
The fixed broadband market offers significant consumption and, more importantly, higher Average Revenue Per User (ARPU), coupled with low churn rates, making it a highly lucrative segment for wireless service providers. Home broadband plays a crucial role for telcos as they have made substantial investments in 5G, and 5G-enabled fixed wireless access (FWA) is a critical use case to monetize their 5G investments. Airtel and Jio introduced their FWA services, Airtel XStream and JioAirFiber, earlier this year.
Service providers are increasingly recognizing the growing relevance of fixed broadband, as evident from the recent partnership between Jio and Plume. Jio will leverage Plume’s HomePass and WorkPass services to enhance the broadband experience for 200 million premises. Ensuring a best-in-class experience is crucial for telcos, as the fixed broadband sector emerges as the new battleground, with Jio and Airtel vying for supremacy.
India has traditionally been a mobile-first country when it comes to internet access. As of 2022, the country had 759 million active internet users, with the number expected to reach 900 million by 2025. A significant portion of the population experienced internet access for the first time through 4G networks on smartphones, rather than on desktops or laptops. Reliance Jio played a pivotal role in disrupting the market by offering free 4G services for the initial six months of its operations. This move pressured other telcos to reduce data tariffs. Additionally, Jio introduced value-for-money smartphones, making it easier for consumers to access data services.
However, telcos primarily focused on the wireless segment, resulting in low adoption rates for fixed broadband. The challenges included cumbersome fiber deployment in India, owing to a lack of clear right-of-way policies. The process required approvals from multiple municipal and district-level authorities, along with substantial fees, causing delays in fiber deployment. These factors have led to India lagging significantly behind in fiber infrastructure, which is vital for high-speed in-building connectivity.
