22 Apr 2021
Posted in Technology
Fiber optic infrastructure expansion to boost India’s fixed broadband services market, forecasts GlobalData
The Indian government’s efforts to expand fiber optic infrastructure across the country will further drive fixed broadband services market growth at a compound annual growth rate (CAGR) of 7.1% over 2020-2025, according to GlobalData, a leading data and analytics company.
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.
Against this backdrop, the government of India aims to establish optical fiber 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 fiber 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: “Recognizing that the country’s appetite for data consumption is increasing by the day, the authorities have taken up OFC deployment on a priority. The Department of Telecommunications (DoT) has already set up a target to deploy five million kilometers of fiber by 2024. India presently has a fiber network spanning around 2.8 million kilometers.
“GlobalData is optimistic about the country’s fixed broadband services outlook and estimates fiber 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 fiber optics subscribers share. In 2020, fiber optics market share of Jio was around 31% of total broadband access lines in India.”