Smaller Broadband Players Have Equal Opportunity to Grow as Big Players: Motilal Oswal

Internet Service Providers (ISPs) are currently targeting premium customers with higher APRU fibre-based plans along with value-added services like entertainment, home security and automation

By December 1st, 2020 AT 9:34 AM

The Indian wireline market has remained highly underpenetrated for years due to weak wired infrastructure. However, with Reliance Jio entering the segment, it is expected that the ISP would create similar disruption as it did to the telecom market four years ago. Motilal Oswal believes that Jio’s aggressive push in the broadband market may not create an impact. In global markets, wired broadband is a well-networked infrastructure leveraged for data consumption, driven by higher Fibre-to-the-Home (FTTH) penetration supported by lower FTTH deployment cost/subscriber. In India, the situation is quite the opposite as the market has seen limited investments which resulted in subscriber growth and a major shift towards wireless consumption. Furthermore, the market research firm added that the smaller broadband players in the country have equal opportunities in the market as big players.

Small Players Gain Market Share During Lockdown

Reliance Jio has set its sights of achieving 50 million broadband subscribers and Motilal Oswal says a player of Jio’ scale and the past record could drive growth in the ecosystem. Jio’s current target of 50 million is a massive 2.5x higher than the existing industry subscriber base of 20.5 million. The Indian Wireline market is currently dominated by BSNL, Bharti Airtel and Reliance Jio, which account for around 57% of the total market size.

If seen in the context of total households in India at 298 million and 197 million TV-owning households, the market potential seems strong. The market is divided in a way that 20-25% of subscribers are premium high ARPU customers, while the rest are satisfied with low ARPU data connectivity plans, believes Motilal Oswal. With Jio’s launch, other players have stepped up network rollout/home passes to retain the market share.

Internet Service Providers (ISPs) are currently targeting premium customers with higher APRU fibre-based plans along with value-added services like entertainment, home security and automation. The local ISPs are also predicted to have equal opportunity to grow in the market. The research firm stated that there’s an increased demand for low ARPU conventional home broadband connectivity during the recent lockdown. The performances of regional ISPs from March 2020 to August 2020 also suggest the same as they accounted for 84% of the overall wireline subscriber growth of 7%.

Read more on:

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

Notify of
oldest most voted
Inline Feedbacks
View all comments

Recent Posts

iQOO 7 Series India Launch Confirmed For April 26

iQOO is soon going to launch the iQOO 7 series in India. The company has confirmed the launch date of...

Telecom Industry’s Growth Will Driven by Enterprise Services: Report

India’s telecom industry is soon going to undergo a major change once the 5G networks are commercially launched. According to...

Mavenir Announces AI-on-5G Hyper Converged Edge Solution

Mavenir, an American telecommunications software company, has today announced the ‘AI-on-5G’ Hyper-Converged Edge Solution in collaboration with NVIDIA. Mavenir has...