India Records 25% Wireline Broadband Growth

In contrast to the country's growing fascination with mobile broadband, the latest data from the Broadband Forum reveals that the country's fixed broadband user base grew by 24.5 percent in 2011 to 13.3 million, up from 10.7 million at the end of 2010.

According to the Forum's statistics, India is only behind Russia and Ukraine in terms of annual growth rate: Those countries' broadband user bases grew by 36.85 percent and 31.59 percent respectively.

In addition, India is set to become one of the Top 10 largest fixed broadband markets in the world during the course of this year (it is currently 11th), even though its fixed broadband penetration rate is very low, at just more than 1 percent.

"India is witnessing tremendous bandwidth demand, particularly as more coverage and competitive pricing has meant that much of the urban population now has the chance to access the internet via broadband," says Robin Mersh, CEO of the Broadband Forum during a press event at the Convergence India show this week.

According to the Forum, DSL accounts for more than 60 percent of India's current fixed broadband connections, making it the most dominant broadband technology (as it is in most markets). There are, though, signs that other technologies such as FTTH (Fiber-To-The-Home) are attracting more users.

"Wireline technologies have got much needed potential for the kind of high-bandwidth services that the country needs. While I am not discounting the potential of mobile broadband, you need to understand that there is limited spectrum available, and considering the market dynamics, it's the wireline that will foster the growth," Mersh added.

He does, however, recognize that the growing number of mobile devices and the roll-out of new wireless technologies, including 3G and LTE TDD, will be a significant catalyst for overall broadband services growth in India in the coming years.

The report estimates the global growth rate of broadband connections at 12.3 percent, the highest growth in the past five years. The total broadband subscribers additions in 2011 is projected to be 65.49 million, taking the global user base up to 597.32 million.

-Jatinder Singh, Principal Correspondent, Light Reading India