Mobile data service revenue is expected to grow at CAGR 8.1% over 2022-2027, even as mobile voice revenue drops on the back of users increasingly shifting to over-the-top (OTT) communications platforms, data and analytics firm GlobalData said in its India Telecom Operators Country Intelligence Report Tuesday.
The total telecom and pay-TV services revenue in India is expected to increase at a compound annual growth rate (CAGR) of 3.1% from $42.3 billion in 2022 to $44.9 billion in 2027, primarily driven by mobile data and fixed broadband segments, the firm forecasts.
Current market leader Reliance Jio is expected to continue holding pole position during the forecast period due to its competitively priced 4G packages and the accelerated pace of its ongoing 5G service expansion, the report added.
“4G services accounted for the majority share of the overall mobile subscriptions in 2022 in India and will remain the leading mobile technology, by subscriber volume through to 2027,” Sarwat Zeeshan, telecom analyst at GlobalData said.
He added that 5G subscriptions will grow at a faster rate over the forecast period, driven by the rising demand for and increasing availability of high-speed 5G services in the country as telcos expand their 5G networks across the country.
According to the report, mobile data service revenues will continue to increase at CAGR of 8.1% over the forecast period, driven by the continued rise in smartphone adoption, growing mobile internet subscriptions, and increasing consumption of mobile data services on the back of expanding 4G subscriber base and projected rise in the adoption of higher ARPU-5G services.
In the fixed communication services segment, fixed voice service revenues (landline) will decline over the forecast period due to steady losses in circuit-switched subscriptions and declining fixed voice ARPU.
Fixed broadband service revenues, on the other hand, will increase at a CAGR of 6.1% over the 2022-2027 period in line with the steady rise in fixed broadband subscriptions, particularly over fibre-to-the-home (FTTH).
“Growing demand for and increasing availability of higher-speed fibre broadband connectivity on the back of the government’s efforts to expand fibre network infrastructure across the country will drive the adoption of fibre broadband services over the forecast period,” Zeeshan said.
Much like mobile voice and fixed line voice revenues, pay-TV revenues are also expected to suffer decline over 2022-2027 at the hands of increasing adoption of OTT services, in this case video streaming platforms, as high speed internet becomes increasingly ubiquitous over time.
Jio’s dominance over the telecom market is expected to remain unchallenged through to 2027.
“The operator also leads the country’s fixed broadband services market in terms of subscriptions, supported by its strong position in the growing fiber broadband services segment and efforts to expand its JioFiber network,” Zeeshan added.
Source: The Economic Times