The total number of broadband subscribers in India – including DSL, cable, fiber optic, and broadband wireless platforms – will reach 15.4 million at the end of 2012, according to ABI Research. This is anticipated amid rapid growth in the country’s telecommunications sector as well as the surge of broadband communications.
India’s burgeoning economy and the Indian government’s broadband initiatives have supported the continuous expansion of the broadband sector.
“Government initiatives are essential to speed up broadband deployment in India, since the current broadband penetration of 5% is considerably low,” research analyst Khin Sandi Lynn said. “The lack of infrastructure for fixed broadband access is one of the main reasons hampering the widespread use of broadband.”
Besides the network infrastructure, India does not have enough applications and services to drive broadband uptake. Although the government has initiated e-governance, e-learning, and e-healthcare services, these services are presently at a nascent stage.
Unless there are innovative services that need high-bandwidth access, consumers are unlikely to spend on fixed broadband access. Services -- including online video, online music downloads, and online gaming -- are currently the most popular applications that Indian online users patronize. Broadband operators will need to develop and provide such types of value-added services to the broadband users to boost the subscriber base.
Broadband network expansion as well as network upgrades are currently underway in India as they try to catch up to other comparable Asia-Pacific broadband markets. Not to be left behind, state-run operator BSNL has started to launch fiber-to-the home services in some cities, providing up to 100 Mbps speeds. Overall, the Indian fixed broadband market will continue to grow, reaching 24 million subscribers in 2016.
ABI Research’s new study, “Indian Broadband Market,” also highlights the limitations and constraints of the Indian broadband sector and the market drivers for future growth. The study further provides broadband CPE market status and service revenue for India’s broadband sector.