In recent years, India has experienced a remarkable increase in wired broadband subscribers, reaching 39.4 million as of February 29, 2024. This represents a 20% growth compared to the previous year, according to the Telecom Regulatory Authority of India (TRAI). Despite this impressive growth, wired broadband penetration remains relatively low at around 10%, underscoring the continued dominance of mobile internet usage in the country.

The Pandemic Effect

The COVID-19 pandemic has played a pivotal role in driving the adoption of broadband internet delivered via optical fibre cables. As people shifted to remote work, online education, and digital entertainment, the demand for reliable and high-speed internet connections surged. This trend is part of a broader rise in broadband adoption in India, with the overall subscriber base growing from 392 million in February 2018 to 916 million in February 2024.

Growth Trends and Challenges

The year-on-year growth rates for broadband subscribers were 16% in 2021, 19% in 2022, and 23% in 2023. However, the month-on-month growth rates from February 2023 to February 2024 ranged from 1.3% to 1.7%, slightly lower than the 2.5% to 3% range observed from 2022 to 2023. This indicates a steady but slightly decelerating growth trend.

Currently, internet services in India are delivered through three primary modes: wired lines, mobile devices, and wireless radio spectrum. The Telecommunications Bill 2023 has introduced provisions for spectrum allocation for satellite-based services without the need for auctions. This could pave the way for providers like Airtel’s OneWeb and Elon Musk’s Starlink to offer satellite-based internet services in India.

Wired vs. Mobile Internet

Despite the recent growth in wired broadband, penetration levels in India are still low compared to the 80-90% adoption rates seen in the US, China, and European markets. The widespread use of smartphones has led 95% of the Indian population to connect to the internet via mobile devices. As of February 2024, there were 876 million mobile data users compared to 39 million wired broadband subscribers. On average, Indian users consumed 24 GB of data per month on mobile devices in 2023.

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