![India broadband market reaches US$20.3 Billion in 2013: IDC India broadband market reaches US$20.3 Billion in 2013: IDC](https://varindia.com/storage/news/uploads/2014/06/IDC.jpg)
According to International Data Corporation (IDC) Asia/Pacific Semiannual Telecom Services Tracker, the Asia/Pacific excluding Japan (APeJ) fixed broadband market reached a value of US$20.3 billion in the first half of 2013 (1H2013), showing a Half-on-Half (HoH) growth of 5.2%. The APeJ broadband market will continue to grow at a Compounded Annual Growth Rate (CAGR) of 12.1% for the next five years, powered by the fast-growing bandwidth demand and the government-driven broadband projects.
"In India, the number of fixed broadband subscribers will see a CAGR of 13.9% in the next 5 years, while the CAGR of revenue will be 7.8%. The fast-growing bandwidth demand, driven by cloud, video and other bandwidth-hungry applications, have led to bandwidth upgrade taking place across Asia/Pacific countries including India,” says Sherrie Huang, Research Manager of IDC’s Asia/Pacific Telecommunications Group.
The difference between broadband subscriber number and revenue growth shows continuous Average Revenue Per User (ARPU) decline in India. One reason is the high price pressure and fierce competition in the Indian telecom market. Also, the growth in mobile broadband is starting to slow down the demand for fixed broadband services, especially on the low-bandwidth side. On the other hand, the mobile-only household is on the rise.
While operators are spending more on network upgrades to satisfy market demand, the revenues and ultimately the return on investment are being squeezed by Over the Top Players (OTTPs). OTTPs offer rich-media applications which are bandwidth and latency-sensitive, as well as voice services which are chipping away at the heart of many operators’ revenue streams. Sustaining revenue growth and profitability will be challenging.
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