Broadband penetration still low in India: Study

Huawei expects total broadband subscriber base to reach 563 million by 2020

PTI | October 4, 2012



With the government focusing on its agenda to provide affordable broadband services to the masses, revenue from data services is expected to grow 400 per cent to USD 19.3 billion by 2020, a report by Huawei has said.

"The data revenue is expected to increase from USD 3.9 billion in 2011 to USD 19.3 billion by 2020, registering a 400 per cent growth," Huawei India said in its report 'Connected possibilities: innovation, integration and inclusiveness' in partnership with Ernst & Young.

The total broadband subscriber base is expected to reach 563 million by 2020 of which 450 million will be wireless subscribers while 113 million will be fixed line users, the report added.

The voice revenues, however, are expected to decline from USD 34.7 billion in 2011 to USD 31.5 billion by 2020.

The report highlighted the fact that broadband penetration in rural areas in quite low which may be a result of lack of awareness and access to affordable technologies.

"Most content available today is in English and might now be relevant to the population residing in rural areas. We should thus aim to provide affordable devices and relevant content to ensure optimum connectivity," Huawei India Executive Director A Sethuraman told reporters here.

The report said anticipated growth in the sector can be achieved by setting up infrastructure in the hinterland.

"With the government's approval for implementation of the nationwide optic fibre backbone market, the broadband penetration is expected to get a major boost in rural India in the next few years," the report added.

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