India's Wired Broadband Landscape | A 20% Surge to 39.4 Million Subscribers

India's Wired Broadband Landscape | A 20% Surge to 39.4 Million Subscribers

India's Wired Broadband Landscape | A 20% Surge to 39.4 Million Subscribers

Introduction: 📑🖊️

India is witnessing a remarkable growth in its wired broadband sector, with a 20% increase in subscribers reaching 39.4 million as of February 2024, according to the Telecom Regulatory Authority of India (TRAI). 

Despite this growth, the wired broadband penetration in the country remains at a mere 10%, emphasizing the overwhelming dominance of mobile internet usage.

The Surge in Broadband Adoption:🌐

The Covid-19 pandemic acted as a catalyst for the adoption of broadband internet, especially through optical fibre cables. The subscriber base has seen a significant growth from 392 million in February 2018 to 916 million in February 2024. 

The year-on-year growth rates have been impressive, recording 16% in 2021, 19% in 2022, and 23% in 2023.

Modes of Internet Delivery:🔌🖥️

Currently, internet services in India are primarily delivered through three modes: wired lines, mobile devices, and wireless radio spectrum. 

The recent Telecommunications Bill 2023 has further paved the way for satellite-based internet services, potentially benefiting Airtel’s OneWeb and Elon Musk’s Starlink.

Wired Broadband vs. Mobile Internet:📱📡

Despite the growth in wired broadband, its penetration in India is still at 10%, in stark contrast to the 80-90% adoption levels seen in the US, China, and European markets. 

The proliferation of smartphones has led to 95% of the Indian population accessing the internet via mobile devices. As of February 2024, mobile broadband subscribers stood at a staggering 876 million, consuming an average of 24 GB of data per month in 2023.

The Importance of Optical Fibre-Based Internet :📡

Vivek Raina, CEO of Excitel Broadband, highlighted the independent need for optical fibre-based internet for work-from-home, study, and entertainment needs. 

He pointed out that nearly 70% of the costs in wired broadband are associated with the last-mile connectivity to customer premises, which has deterred larger players from innovation and smaller players from entering the market.

Key Players and Challenges:🛰️

Reliance Jio, Bharti Airtel, BSNL, and Atria Convergence Technologies (ACT) are the leading players in the wired broadband space.🛰️ 

However, the industry faces challenges such as high costs in last-mile connectivity and reduced statutory fees. The industry think tank, Broadband India Forum, has urged the government to consider reduced fees and GST exemptions to help the industry scale up.

Exploring Alternatives:🔭📡

While telcos have been exploring Fixed Wireless Access (FWA) broadband as an alternative to wired broadband, its adoption remains minimal, comprising less than 1% of total broadband subscribers as of February 2024.

Conclusion:📄🖊️

India's wired broadband sector is experiencing significant growth, driven by the Covid-19 pandemic and the increasing demand for high-speed internet for work, study, and entertainment. 

Despite this growth, the penetration rate remains low compared to global standards, presenting both challenges and opportunities for the industry. 

With the government's support and innovative solutions, the wired broadband sector in India has the potential to reach new heights and bridge the digital divide.

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