The Indian government’s efforts to expand fibre optic infrastructure across the country will further drive fixed broadband services market growth at a compound annual growth rate (CAGR) of 7.1% from 2020-205, according to GlobalData, a “leading data and analytics company.”
GlobalData says “rising demand for high-speed Internet services to support work from home commitments and consumption of high-bandwidth OTT video services” among people amidst the COVID-19 prompted lockdowns are “driving India’s fixed broadband service market revenue.”
With this data, the Indian government aims to establish optical fibre connectivity to all 600,000 Indian villages by 2023 under its ambitious program ‘Digital India Mission’.
An analysis of GlobalData’s India Fixed Communication Forecast Pack reveals that “the total fibre optic access lines have increased year-on-year by 113% in 2020 and will reach 10.19 million by 2025.”
Antariksh Raut, Telecom Analyst at GlobalData, comments: “Recognising that the country’s appetite for data consumption is increasing by the day, the authorities have taken up Optical Fibre Cables (OFC) deployment on a priority.”
According to Raut, the Department of Telecommunications (DoT) has already set up a target “to deploy five million kilometres of fibre by 2024. India presently has a fibre network spanning around 2.8 million kilometres.”
Raut explains: “GlobalData is optimistic about the country’s fixed broadband services outlook and estimates fibre optic lines to hold 23% market share of total access lines, surpassing xDSL subscriptions in 2025.”
“Moreover, fiber optic service revenue in India is expected to grow at a CAGR of 13% between 2020 and 2025 accounting USD 4.7 million in 2025. Reliance Jio is expected to outshine its competitors with its fibre optics subscribers share. In 2020, fibre optics market share of Jio was around 31% of total broadband access lines in India”, he concludes.