India Eyes Rs 4.2 Trillion for Broadband Expansion by 2030

To significantly boost broadband expansion across India, it is projected that an investment of over Rs 4.2 trillion will be required by 2030. This substantial financial infusion is expected to come through collaborative efforts under public-private partnership (PPP) models, reflecting a unified commitment from both sectors. 

The primary aim of this massive investment is to expand and enhance broadband infrastructure throughout the country, covering both densely populated urban areas and under-served rural regions. The initiative seeks to bridge the digital divide and ensure that all regions of India can benefit from reliable and fast internet connectivity. 

This strategic investment will transform the digital landscape of the nation. Additionally, it will fuel economic growth by unlocking new opportunities in various sectors driven by enhanced digital access.

Current State of Broadband in India

Despite substantial growth in data consumption, India lags behind in fixed broadband penetration, particularly in rural areas. While the average data usage on fixed broadband in India is 187 GB per month, it falls well short of the US average of 641 GB. With only 2.85 fixed broadband subscriptions per 100 persons, India’s broadband access is just a quarter of the global average.

The Goal for Broadband Penetration

Prashant Singhal, EY Global TMT Emerging Markets Leader, emphasizes the urgency of expanding home broadband. “To elevate our global economic ranking, we must increase our home broadband penetration from 13% to 80%. This would mean equipping 250 million out of 300 million households with broadband by 2030,” he said.

Detailed Investment Breakdown

The investment forecast by Singhal includes substantial allocations across various sectors:

• Fibre deployment: Rs 2.7-3 trillion
• Passive infrastructure: Rs 90,000-96,000 crore
• WiFi and in-building solutions: Rs 6,600-Rs 9,000 crore
• Data centres: Rs 9,700-Rs 14,100 crore
• Satellite broadband services: Rs 26,000-29,000 crore

Strategic Growth and Usage Trends

TV Ramachandran, president of the Broadband India Forum, outlined the necessity for rapid growth in fixed broadband. “To meet the rising demand, we anticipate a 20% annual increase in broadband subscriptions, aiming for an additional 100 million fiber connections by 2026,” he stated.

Leveraging Existing Networks

To support this growth, leveraging the extensive networks of local cable operators, public data office aggregators, and smaller ISPs is crucial. These entities can play a significant role in expanding broadband access, particularly in underserved regions.

Policy Recommendations for Enhanced Broadband Access

Experts propose several measures to boost broadband access:

• Implementing free government-sponsored broadband with data caps to aid rural populations.
• Reducing right of way costs to ease network expansion.
• Encouraging collaborations with local cable operators.
• Introducing levies on high ARPU subscribers to fund rural broadband initiatives.
• Utilizing corporate social responsibility funds to build necessary broadband infrastructure.

Also read: New RBI Guidelines to Influence Project Financing Costs for Infrastructure

Comparative Broadband Penetration

India’s broadband penetration significantly lags behind other leading economies, underscoring a critical area for development to enhance its global standing. In comparison, the US reports a home broadband penetration rate of 92%, China at 97%, Japan at 84%, and Germany at 82%. 

For India to compete effectively on the global stage, substantial increases in broadband connections are imperative. Specifically, urban broadband connections need to surge from the current 36 million to 100 million by 2030. Even more pressing is the need to boost rural broadband from a mere 3 million to 153 million connections in the same timeframe. 

This dramatic increase is essential for achieving competitive parity. It will also help ensure comprehensive digital inclusion across diverse Indian geographies, thereby fostering equitable economic growth and enhancing the quality of life for its rural population

The drive to expand broadband access across India represents a pivotal strategic initiative aimed not merely at enhancing internet connectivity but at propelling the nation towards substantial economic growth and heightened global competitiveness. Achieving the ambitious broadband expansion targets is essential for India to secure its position as a leading digital economy. This broader connectivity will facilitate innovations in technology, bolster small and medium enterprises, and improve educational and healthcare services by making digital resources accessible to a larger population.

Ultimately, by meeting these broadband expansion goals, India is set to transform into a more connected and digitally empowered society, ready to compete on the global stage and attract international investments that spur further economic advancements.