It is expected that the wireline broadband connection in the Indian market is going to have some bundled plans. The bundled plans will include home broadband service, television service and wireline voice service. According to the rating agency ICRA, the plan has the potential to generate 80,000 Cr INR in the next five years.
The agency also said that the bundled services will allow the wireline broadband connection to reduce its current price by 40-50%. Price reduction and increasing demand for internet connectivity can increase the subscriber base for wireline broadband.
The agency added that the DTH market along with the home broadband connection will witness a significant role that will be played by the telecom operators. Thus, the generated revenue will increase with the growing number of subscribers. However, the competition in the market will also increase significantly.
It is assumed that the subscriber base for wireline connection will increase to hundred million within the next five years. Thus, the revenue generation will also expand as much as 80,000 Cr INR. Currently, the amount of generated revenue is 14,500 Cr INR.
The sector head and vice president of corporate rating at ICRA said that India is far behind in the wireline broadband penetration in comparison with the international standard. As per the report of the agency, the subscriber base was 18 million only as in September 2018. While the penetration rate in India has been7% only, it has been 99% in France and 44% in Brazil.
Over the last few years, the telecom industry in India has been going through some rough patches. It has led to a decline in the tariff rates. According to ICRA, wireline broadband can change the scenario positively. It can increase the subscriber base which will result in better revenue generation.