Summary:
India’s goal of becoming a developed nation by 2047 and building a $1 trillion digital economy by 2030 will require stronger digital infrastructure, with fibre-based fixed broadband playing a central role alongside mobile networks. Despite its economic benefits, India’s fixed broadband penetration remains low at around 4%, highlighting the need for greater fibre deployment to support rising data demand, faster speeds, and lower latency. The report recommends a fibre-first approach, including household-level connectivity, fibre-ready buildings, improved indoor Wi-Fi, and supportive policy measures such as tax incentives and public utility status to accelerate broadband expansion and drive economic growth.
India has set an ambitious goal of becoming a developed nation by 2047, with the digital economy projected to contribute nearly $1 trillion by 2030. Achieving this vision will require robust digital infrastructure, where fibre-based fixed broadband and mobile broadband together form the foundation of internet connectivity.
Core connectivity pillars
Although mobile broadband and fibre networks both play important roles, the constraints of wireless technologies highlight the need for wider optical fibre deployment. Mobile broadband and fixed wireless access (FWA) are effective in areas where laying fibre is challenging, but they come with limitations. FWA generally offers speeds between 50 Mbps and 150 Mbps, latency of 30–80 milliseconds, and consumes significantly more energy than fixed-line broadband. By contrast, fibre connections can provide speeds of up to 10 Gbps, latency below 10 milliseconds, and lower power consumption.
The need to expand fixed broadband
India’s fixed broadband penetration remains low compared to many advanced economies. While several countries have penetration levels exceeding 35 per cent, India’s fixed broadband reach is only around 4 per cent. This gap is also visible in internet usage trends. Worldwide, fixed networks carry nearly 82 per cent of total internet traffic, whereas in India they account for around 44 per cent of broadband traffic despite representing only about 3 per cent of internet subscriptions.
Research highlights the economic benefits of increasing fixed broadband access. A study by the Broadband India Forum estimates that every 10 per cent rise in fixed broadband penetration could contribute approximately $48.1 billion to India’s GDP. The World Bank estimates a 1.39 per cent increase in GDP for every 10 per cent increase in broadband penetration, while the Indian Council for Research on International Economic Relations suggests that a similar increase in overall internet traffic could raise India’s GDP per capita by 3.1 per cent.
Rising data consumption further strengthens the case for fibre expansion. Ericsson projects monthly mobile data usage to reach 62 GB per user by 2028, while fixed broadband usage in many countries already ranges from 200 GB to 700 GB per connection each month. In India, the number of fixed broadband connections is expected to grow from around 50 million today to nearly 100 million by 2030.
Global examples underline the importance of treating fibre as essential infrastructure. China’s Broadband China policy, introduced in 2013, placed optical fibre alongside utilities such as roads, electricity, and water, helping the country achieve 44.7 per cent fixed broadband penetration, with the digital economy contributing 41.5 per cent of GDP. The United States has promoted fibre through the Broadband Equity, Access and Deployment (BEAD) programme and the Affordable Connectivity Program, while the European Union’s Gigabit Infrastructure Act aims to provide all households with access to gigabit-speed networks by 2030.
Building a fibre-first ecosystem
Expanding fixed broadband will require policies that encourage fibre deployment directly to households. While BharatNet currently focuses on villages as the implementation unit, greater emphasis on household connectivity could significantly improve broadband adoption. Making buildings fibre-ready and mandating optical home-pass infrastructure in residential and commercial projects would ensure immediate access to high-speed internet.
Since a large share of internet usage occurs indoors, stronger Wi-Fi infrastructure is also essential. Residential complexes, parking areas, and common spaces often experience connectivity challenges, and deploying cellular infrastructure everywhere is not always practical. In such situations, Wi-Fi networks can complement fibre connectivity and enhance user experience.
To accelerate deployment, fibre-based fixed broadband could be recognised as a public utility, similar to electricity, water, and roads. Additional measures may include GST refunds for rural broadband users until fixed broadband penetration improves, temporary tax exemptions on optical fibre equipment and installation, and licence exemptions for fibre-based fixed broadband service providers.
