April 23, 2024, New Delhi: The surge in demand for high-speed internet services, combined with competitively priced fiber broadband plans offered by operators, featuring benefits such as unlimited internet and access to major Streaming Video on Demand (SVoD) platforms, is projected to drive the adoption of fiber broadband services in India between 2023 and 2028.

India’s fixed communication services revenue is anticipated to experience a steady rise, reaching $13.2 billion by 2028, according to GlobalData. The growth, representing a compound annual growth rate (CAGR) of 2.9%, is primarily attributed to the flourishing fixed broadband business in India.

Fixed voice services revenue in India is expected to decline at a CAGR of 4% between 2023 and 2028. The shift towards mobile and over-the-top (OTT) communication services among users, coupled with operators offering complimentary voice minutes within bundled plans, is driving the decline in average revenue per user (ARPU) of fixed voice operators in India.

By 2028, GlobalData predicts that fiber optic lines will dominate over 80% of India’s total broadband lines. This trend is underpinned by substantial government investments in fiber network infrastructure and expansions in Fiber-To-The-Home (FTTH) services by operators. Consequently, revenue from fiber optic services is expected to grow steadily at a CAGR of 4% from 2023 to 2028. A report by Statista.com has projected that the number of households with internet access in India is forecast to continuously increase between 2024 and 2029 to total 108.8 million households (+69.15%). After the fifteenth consecutive increasing year, the number of households is estimated to reach 266.18 million households and therefore a new peak in 2029. Notably, the number of households with internet access has been continuously increasing over the past years.

While there has been a race amongst service providers to onboard new consumers, existing consumers of fixed line services continue to report issues with their connection. To understand the magnitude of issues faced, LocalCircles conducted its annual broadband survey which received over 70,000 responses from broadband/fiber consumers located in 286 districts of India. 63% respondents were men while 37% respondents were women. 46% respondents were from tier 1, 30% from tier 2 and 24% respondents were from tier 3 & 4 districts.

86% users of fixed line services primarily connect to internet at home via fiber/ broadband/ dsl/ fixed line connection

The survey first asked users of fixed line services, “How do you primarily connect to the internet from your home?” Out of 13,835 responses to the question, 86% stated that they “use a fiber/ broadband/ dsl/ fixed line connection”; 7% stated that they “use internet connection device or dongle from mobile service provider”; and 7% stated that they “use a hotspot via 3G/ 4G/ 5G mobile connection”. In essence, 86% users of fixed line internet services primarily connect to internet at home through use of fiber/ broadband/ dsl/ fixed line connection.

34% fiber/broadband/dsl/fixed line users say they have 3 or more issues every month with their connection

Connectivity issues or slow speed are common issues with the internet, despite transition to 5G by many going by complaints on social media. The survey asked, “if you have a fiber/ broadband/ dsl/ fixed line connection for internet at home, how many times in a month do you generally have issues with it?” The question received 13,349 responses with 2% of respondents indicating “more than 10 times” every month”; 22% indicating “5-10 times” a month; 10% indicating "3-5 times” a month; and 48% indicating "once or twice" a month. However, 16% of respondents stated that they “do not face any issues” and 2% did not give a clear reply. To sum up, 34% of fiber/broadband/dsl/fixed line users surveyed say they have 3 or more issues every month with their connection.

56% fiber/broadband/dsl/fixed line users struggle with either connection disruption issues or lower speed received than promised/paying for

Telecom companies’ claims of better services after transition to 5G connection seems unreliable as they too face disruption or slow service, going by complaints on the social media. The survey next asked, “If you have a fiber/ broadband/ dsl/ fixed line connection for internet at home, what is your top issue with it?” The question received 14,430 responses with 39% of respondents indicating that the “speed received is much lower than what we are paying for”; 17% of respondents complained about “frequent disruptions”; 2% expressed apprehension that they “feel our router is being used by someone else as random websites open up when trying to access internet”; and 7% of respondents indicated “other reasons” not mentioned. However, 32% of respondents stated that they “do not face any issues” and “3% did not give a clear response. To sum up, 56% fiber/broadband/dsl/fixed line users struggle with either connection disruption issues or lower speed received than promised/paying for.

47% fiber/broadband/dsl/fixed line users say when they raise a complaint, it takes the service provider more than 24 hours to resolve

Experience of broadband users when it comes to getting issues of connectivity and speed vary. The survey next asked, “If you have a fiber/ broadband/ dsl/ fixed line connection for internet at home and you raised a complaint with the provider, how long on average does it typically take for them to resolve it?” The question received 14,397 responses with 42% stating that the problem gets resolved “within 24 hours”. However, 35% indicated that the complaints are resolved in “1-3 days”; 4% indicated “4-7 days"; another 4% indicated “over 7 days” and 4% indicated that the service provider “never resolve it”. Only 8% of respondents indicated that they are fortunate that they “haven’t had any complaints in the last 1 year” and 3% of respondents did not give a clear reply. The data shows that 47% fiber/broadband/dsl/fixed line users say when they raise a complaint, it takes the service provider more than 24 hours to resolve.

70% fiber/broadband/dsl/fixed line users say they are willing to switch to an alternate provider for better quality, service or price

As in the case of mobile connection, the government allows portability of internet connection, which some use to switch to what is reported to be better service provider. Or else, consumers with considerable work requiring good internet connection, take the services of more than one company. The survey asked, “What is it that will make you switch from your current broadband/ fiber/ dsl service provider to an alternate service provider?” The question received 14,255 responses with 32% indicating “better connection quality and uptime”; 12% indicated “lower monthly price for similar speed/ quota connection”; 22% indicated "higher speed/ quota for similar monthly price”; and 4% stated “other reason” not mentioned. Of the remaining. 30% indicated that they are “happy with my provider and will not switch”. In essence, 70% fiber/broadband/dsl/fixed line users say they are willing to switch to an alternate provider for better quality, service, or price.

To summaries, the survey has revealed that 86% of users of fixed line connections primarily connect to the internet at home via fiber/ broadband/ dsl/ fixed line connection. What is most interesting is that 70% fiber/broadband/dsl/fixed line users say they are willing to switch to an alternate provider for better quality, service, or price. The reason for this sentiment is not far to find as the survey shows that 34% fiber/broadband/dsl/fixed line users have 3 or more issues every month with their connection. The survey finds that 56% fiber/broadband/dsl/fixed line users struggle with either connection disruption issues or lower speed received than promised/paying for. In addition, 47% of fiber/broadband/dsl/fixed line users surveyed say that when they raise a complaint, it takes the service provider more than 24 hours to resolve. This in effect shows that telecom service providers are not investing enough to provide better service and promptly resolve issues to help consumers have access to good internet services.

LocalCircles plans to share results of the survey with the related government bodies, particularly the telecom regulator, TRAI, the Ministry of Telecom and the Department of Consumer Affairs to look into these issues faced by consumers.

TRAI: India now has 936.16 million internet subscribers | - Times of IndiaApr 23, 2024TECH NEWS : India\'s internet landscape shows growth with 936.16 million subscribers. Reports indicate dissatisfaction with speeds. Telephone subscribers increasedhttps://timesofindia.indiatimes.com/technology/tech-news/india-now-has-936-16-million-internet-subscribers-trai/articleshow/109537789.cmsarticleTOI

More than half of internet users battle speed issues: LocalCirclesApr 23, 2024In India, 86% users of fixed line internet connections primarily access the internet at home through fibre, broadband or DSLhttps://www.fortuneindia.com/macro/more-than-half-of-internet-users-battle-speed-issues-localcircles/116541#origin=https%3A%2F%2Fwww.google.com%2F&cap=swipe,education&webview=1&dialog=1&viewport=natural&visibilityState=prerender&prerenderSize=1&viewerUrl=https%3A%2F%2Fwww.google.com%2Famp%2Fs%2Fwww-fortuneindia-com.cdn.ampproject.org%2Fc%2Fs%2Fwww.fortuneindia.com%2Famp%2Fstory%2Fmacro%2Fmore-than-half-of-internet-users-battle-speed-issues-localcircles%2F116541%3Fusqp=mq331AQIUAKwASCAAgM%25253D&_kit=1articleFortune