India's Fixed Communication Services to Earn $13.2B

GlobalData's latest report projects India's fixed communication services revenue to grow at a compound annual growth rate (CAGR) of 2.9%, from $11.5 billion in 2023 to $13.2 billion by 2028. The robust expansion of the fixed broadband segment primarily drives this anticipated growth.

GlobalData, an esteemed analytics and research firm, has also highlighted that there will be a decline in fixed voice services revenue at a CAGR of approximately 4% over the period from 2023 to 2028. The declining trend aligns with decreasing average revenue per subscriber (ARPU) levels for fixed voice services as users are progressively opting for mobile or over-the-Top (OTT)-based communication services.

The shift towards mobile/OTT-based communication platforms can be attributed to their convenience and cost-effectiveness compared to traditional methods such as landline phones or fax machines. In addition, telecom operators have been offering free voice minutes bundled with their plans, which further encourages consumers' preference shift from pure-play fixed-line telephony towards OTT applications like WhatsApp and Skype, among others.

Despite these challenges faced by the conventional mode of communications due to technological advancements and changing consumer behavior patterns, it's not all gloom and doom for India’s telecommunications industry as far as revenues are concerned, thanks largely to its growing broadband sector.

In recent years, India has witnessed remarkable progress in its digital infrastructure development, most notably through expanded access to high-speed internet connectivity via fiber optics networks across urban areas and even rural parts of the country where there was previously limited access.

This widespread availability, coupled with the affordable pricing models offered by service providers, has led to increased adoption rates among Indian households, thereby driving up revenues within this particular segment of the telecommunications market.

Moreover, a massive surge in online activities ranging from remote work to learning applications due to extensive lockdown measures during the COVID-19 pandemic has exponentially accelerated demand for reliable, high-speed internet connectivity across India.

Interestingly, the report also highlights that fixed broadband services are not just limited to providing internet access but have evolved into a multi-service platform offering digital television and telephony services as well. This bundled approach has further bolstered the appeal of fixed broadband among consumers, leading to its robust growth.

In conclusion, while traditional voice-based communication may be taking a backseat in light of emerging digital platforms, it’s clear that India's telecommunications sector is set for steady revenue growth over the next few years, primarily driven by burgeoning demand for reliable and affordable high-speed internet connectivity. The decline in voice service revenues clearly indicates an industry-wide transition from conventional communication modes towards more advanced and versatile platforms. However, this shift does not spell disaster for telecom operators who can leverage their existing infrastructure and capitalize on growing consumer needs for fast-paced digital communications solutions like OTT applications or even VoIP (Voice over Internet Protocol) services.