Even as telecom operators strenuously roll out 5G networks in India at an unprecedented speed, home broadband growth has been sluggish, according to data from the Telecom Regulatory Authority of India. As of September 2023, the number of wired broadband connections in India amounted to 3.78 crore. While the COVID-19 pandemic coincided with a large spurt in demand for new WiFi connections, the overall penetration even now is a fraction of mobile internet users: 85.9 crore mobile internet connections are currently active in India.
WiFi offers far higher data allowances and more reliable speeds, but the Internet Service Provider (ISP) industry has still not made critical inroads into most people’s homes in India. With the pandemic internationally boosting streaming services, average data use actually reduced on home broadband connections in India, according to an investor presentation by the ISP Hathway, potentially explained by newly working-from-home professionals relying on it for stability and low-cost connectivity more than recreation.
Not all households in India can afford home broadband, especially when it is competing with affordable mobile data. But even among households that can, the penetration is only 30%, estimates Vivek Raina, founder of the ISP Excitel. “For a decade, it was stuck at 2 crore [subscribers], and after COVID it got to 3 crores and it stuck there,” he said. “In households that are opting for internet connections, the migration has slowed down from mobile to wireline.”
