India mobile subs continue to climb as fixed falls

Mobile subscriptions are continuing to rise in India, though the fixed market is increasingly looking prime for disruption as the number of users falls once again.

According to the latest data from the Telecom Regulatory Authority of India (TRAI), mobile subscriptions across the country increased by 0.31% over the three-month period ending in June. Although this might not sound that impressive, 0.31% is the equivalent of 3.65 million subscriptions. The total now stands at 1.165 billion.

The impact of Jio should not be underestimated here. This is a company which revolutionised accessibility to connectivity in the country, and momentum is continuing through 2019. At some point the ceiling will be reached, though in many countries around the world, mobile penetration exceeds 100%.

With a population of roughly 1.33 billion, smartphone penetration across the country stands at approximately 87%. There are of course factors in play which distinguish India from other markets, though there is certainly still more room for growth in the market.

Interestingly enough, while mobile is surging, demand for fixed broadband services is declining. The number of ‘wireline’ subscriptions across the market decreased by 5.47% to 21.17 million. There are roughly 250 million households in India demonstrating the vast room for growth in the country.

Country Number of households Broadband subscribers Penetration
India 249.5 million 21.17 million 8.4%
China 455.9 million 378.5 million 83%
US 138.5 million 109.8 million 79.2%
UK 31.8 million 26 million 81.7%
Japan 49 million 40.4 million 82.4%

As you can see from the table above, the number of broadband subscriptions does not tend to exceed the number of households, but 80% penetration seems to be a fair estimate in the more developed markets.

Due to the vast size of the country and the environmental challenges which are presented, there is perhaps good reason this market penetration is so low. Another factor to take into account is ARPU compared to the heightened expense of deploying a fixed network compared to mobile. These are all factors to consider, but for a company which can balance the equation, the opportunity is clear.

Jio is one of those which is attempting to crack the fixed market.

Having secured the attention of the Indian consumer, it will surprise few the ambitious Jio is seeking to compound this success with a venture into broadband. Last October, the firm announced it had acquired stakes in Den Networks and Hathway Cable to put one foot through the door, though it has not made the blockbuster move some are anticipating.

India has been one of the most interesting markets for telecommunications over the last few years, but there is plenty left to discuss if someone can figure out how to crack the broadband conundrum.

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