As India’s telecom minister Mr. Kabil Sibbal commented while speaking at the 6th FTTH Council Asia Pacific conference that the last mile in India would be an option to the service provider and telecom operator according to the customer choice. It is difficult for the ministry to select a particular technology for the last mile as a choice on last mile technology depends on the availability of options to the customer, cost implications, and economical viability of deploying last mile, etc.
Anyhow the wide deployment of broadband can not be delayed anymore in India and the cost should not be an obstruction to the customer’s wish to have broadband services. The telecom regulatory authority of India, TRAI in an ambitious plan on broadband to the general public in India details on how to achieve that dream and move forward beyond. With an annual growth of 8 to 9%, India is poised to embrace high speed broadband access services.
The coming years will witness more and more Indians demand internet access. Internet Service Provider market will witness tremendous growth in the number of subscribers. The demand for the network equipment and consumer premise equipment bought by ISPs is also showing a growth trend.
What is the factor that drives the consumer demand in India? E-mails, messaging, browsing, online ticket booking, etc have been on rising among Indian subscribers. The use of the internet for e-commerce and online trading etc were also showing tremendous growth in India. The cost of broadband offerings has been showing a downward trend and amongst other drivers for broadband, Research and Market find the cost of government initiatives to drive broadband in India.
In a study to find out the broadband market in India, Research and Market estimates the demand for various kind of equipment and CPEs namely DSL Modems, and DSLAM’s for DSL technology; Cable Modems and CMTS for Cable technology (Hybrid Fiber Co-axial); OLT, ONT’s, PON (GEPON/GPON, EPON), STM’s (1, 4, 16,64s), WDM’s (Coarse and Dense) for Optic Fiber technology, and Antennae and routers for Wi-max and Wi-Fi Technology. Research and Market did their analysis of the Indian market through discussions with various players both the demand and supply side and other experts in the market.
In India, the overall Fixed Broadband market is expected to grow from 10.3 million in 2010 to approximately 49.3 million subscribers in 2015. This includes the four technologies used by ISPs to deliver broadband, namely DSL, Fiber (FTTH, FTTC, vDSL, others), Cable and Others (Unlicensed Wimax, Wi-Fi, leased lines and Ethernet, etc.). The newer segments such as Fiber have started picking up. We are currently tracking Beam fiber launch 10 Mbps speed on fiber in Hyderabad and Act Broadband has been launched with 5 Mbps speeds in Bangalore. The demand that they are witnessing shows positive signs for Fiber growth in India. BSNL has started FTTH service in selected cities like Jaipur, while MTNL has also started FTTH service in selected circles of Mumbai and Delhi.
Research and Markets have done extensive modeling and validation of data with government bodies’ data, existing databases, as well as players in the market. Research and Markets estimate that the total demand for all equipment and devices would be a cumulative total of 11.2 billion dollars and around 43 million units in the next 5 years.
The biggest demand for equipment would be for DSLAM equipment in India. DWDM, CWDM, STM 64, and GEPON would pick up due to FTTH technology, increased bandwidth requirements for Gaming, VOIP, IPTV, etc. Research and Markets estimate that the major players in the equipment market Inda as Huawei, UT Starcom, Alcatel Lucent, and Tejas Networks would continue to hold major shares.
The top 5 ISP vendors account for more than 75% of the Indian market. New players and players with lower market share should focus on both DSL and Cable modem technology involving component focus like DSLAM and CMTS which is expected to be in demand. Players with technological capabilities should focus on equipment like DWDM’s, CWDMs, and STM 64’s. Though the big 5 has a good market hold, Research and Markets think that the fiber optic component market in India will see the entry or expansion of foreign players in the near future.
Research and Markets expect this to have a huge ripple effect for Cat 5, Coaxial, DSL cable players, and Fiber optic cable manufacturers. In India, Radius Infratel, Aksh Optifiber and Sterlite, etc are active in FTTH deployment and they will get a huge benefit from the growing broadband market in India.
Radius is the first company to deploy GPON based FTTH services to the houses of ATS Paradisso in 2008. Ericsson supplied the GPON to this project. Radius Infratel won a contract with Ericsson to deploy FTTH solutions aimed to serve 6, 00,000 households and businesses using GPON systems. Sterlite also won an optical Fiber contract from BSNL to lay 17,000 Km of OFC network to replace BSNL’S existing copper networks.
100 Giga optical transmission services and associated accessories will observe huge growth in the Indian market and business opportunities in these fields are promising. These are all great news for equipment vendors and Knowledgefaber expects positive growth in this sector.
Research and Markets’ report on Fixed Broadband Access Equipment Market in India includes in-depth analysis including key statistics, forecasts and insights of their detailed analysis of Internet service providers in India and their subscriber base, including Technology used & Geographic distribution. Key Drivers and Inhibitors presently driving Internet Service Providers in India including Regulatory changes are also discussed in the report. Analysis and future growth projections of Broadband subscribers and equipment in India by Technology adaptation from Year’ 2011 to 2015, Impact analysis & Opportunity assessment for 15 players across the ISP equipment market, Recommendations for ISP’s on Market development, vendor selection, Sustainable competitive advantage and Recommendations for Vendors to target and develop business with ISP’s, etc are also detailed in the report.
The cost of the report is Euro 1050. The companies mentioned in the report include Alcatel Lucent, Airtel, Avaya, Asianet Satellite Communications, Beam Telecom, BSNL, Cisco India, D vois Broadband, ECI Telecom, Ericsson, Fibcom India, Hathway, Hughes Telecom, Huawei, ITI Limited, Juniper Networks, MTNL, Motorola India, Nokia Siemens Network, Ortel Communication, RAD Data Communications, Reliance Communications, Spectranet, SiYear technologies, Tikona, Tejas Networks, Tata Communications, UT Starcom, You telecom, ZTE India, etc.