Fixed broadband subscribers to grow at an average rate of 12.6% in 2023-30
Another 200 million more Internet users are expected to come online by 2030 in India, joining more than 700 million people who became internet users over the last six years.
This translates into an annual average growth rate of 2% for mobile subscriptions from 2023 to 2030, and increase in fixed broadband subscribers at an average rate of 12.6% over the same period, according to an industry report.
This growth, however, needs to be supported by innovative strategies to enhance industry revenues and profitability while managing the extensive debt burden.
This outlook was given in the “India Telecoms Industry Report – 2023-2030″ report released by ResearchAndMarkets.com on 10 Jan 2024.
Capital expenditure (Capex) in the sector has seen dynamic shifts over the years. The overall market Capex decreased from Rs.1,006 billion in 2016 to Rs.970 billion in 2022.
Operators like Jio have heavily invested in building networks, while others like Vodafone Idea have focused on merger synergies and the elimination of redundant infrastructure.
Bharti Airtel, in response to Jio’s aggressive market entry, increased its Capex in 2022 to accelerate its 5G rollout, the report pointed out.
The introduction of 4G technology marked a turning point for the Indian telecom market, driving a shift from voice-centric to data-centric services.
Mobile data has become integral to digital initiatives and e-governance, underpinning the sector’s growth.
However, more needs to be done to increase 4G coverage to the Indian population with an estimated 1 million more mobile towers to cover most of the people pan-India.
The Government initiatives such as ‘Digital India’ aim to create a digitally empowered society, pushing for broader digital payment platforms and broadband accessibility, said the report.
However, the sector faces challenges like high competition, regulatory uncertainties, and infrastructure issues, particularly in rural areas. Financial stress, highlighted by high debt levels and the complexity of Adjusted Gross Revenue (AGR), adds to these challenges.
The telecommunications industry in India is at a critical juncture, requiring supportive policies, regulatory stability, and continuous investment to overcome these challenges and harness its full potential, according to the report.
The market comprises three major operators with mobile and fixed networks – Bharti Airtel, Reliance Jio, and Vodafone Idea – alongside two state-owned operators and several smaller fixed network operators.
The reported market revenue grew from Rs.2.6 trillion in 2016 to Rs.3.2 trillion in 2022. This growth is attributed mainly to mobile service and fixed broadband revenue expansion.
Despite the earlier decline in legacy voice and SMS revenues, market growth is expected to continue steadily towards 2030, it said.
The Indian telecommunications sector stands as a key driver of the country’s socio-economic development. With its vast potential for growth, the industry’s success hinges on its ability to adapt to technological changes, manage financial health, and meet the burgeoning data needs of one of the world’s largest internet user bases, said the report.
“A balanced approach to growth, innovation, and regulatory frameworks will be crucial in shaping the future of telecommunications in India,” the report underscores. Fiinews.com
