Fixed broadband: The unmatched backbone of a digital economy

India’s emergence as a mobile-first nation is undeniable. With mobile broadband (MBB) reaching 65% penetration (TRAI July 2024), it is easy to see why some believe India does not need fixed broadband and mobile connectivity is enough to meet the nation’s digital demands. However, this thinking overlooks two critical aspects: the explosive growth in data consumption and the limitations of mobile networks.

Globally, countries are investing in optic fibre-based fixed broadband (FBB) to significantly increase data usage. A glance at comparable nations reveals the stark difference between their mobile and fixed broadband landscapes and that of India (see Comparative Data on Mobile and Fixed Broadband).

As the data illustrates, India lags in fixed broadband penetration compared to other nations. Countries like Japan, Sweden, and the United States boast much higher FBB penetration, correlating with their higher data consumption.

The increasing data consumption worldwide has made it imperative for many economies to expand fibre-based FBB infrastructure.

Broadband Speeds: A Comparison of Global Standards

India’s broadband speed standards are relatively low, with a minimum of 2 Mbps. In comparison, other nations have set much higher minimum speed requirements, ensuring better connectivity for consumers (see Broadband Speed Regulations Worldwide). It is no surprise that higher broadband speeds contribute significantly to economic growth.

The Economic Imperative for FBB Expansion

The increasing data consumption worldwide has made it imperative for many economies to expand fibre-based FBB infrastructure. In the United States, monthly data usage per FBB connection has surged to 640 GB, and this figure is expected to reach 700 GB by the end of 2024. In Europe, the average monthly consumption has hit around 500 GB and continues to grow.

Similarly, a leading private wireline operator in India reports an average consumption of around 400 GB per connection monthly. If mobile broadband (MBB) were relied upon to handle this level of usage, it would not only fall short in terms of bandwidth but also result in prohibitively high monthly costs—estimated at over Rs 5,000 per month.

In contrast, fixed broadband offers the necessary bandwidth at a fraction of the cost. This difference arises because the mobile spectrum is continuously consumed and expensive, whereas optic fibre represents a one-time, or “sunk,” cost that remains in place for many years. At a recent Broadband Summit in Delhi, a senior government official highlighted that while mobile broadband costs around Rs 10 per GB, fixed broadband reduces the cost to as low as Rs 1-2 per GB. The substantial cost savings for consumers and businesses make fixed broadband an economically attractive option.

Countries such as South Korea, China, and the United States recognise fixed broadband’s critical role in driving economic growth (see Economic Impact of FBB on GDP and Growth). These nations continue to expand their fibre networks, ensuring their economies remain competitive and well-prepared for the future.

India, too, is taking significant steps in this direction. Through the BharatNet initiative, the country aims to bring fibre connectivity to all 600,000 villages by 2025, as envisioned by the Prime Minister. In 2023, the central government sanctioned a substantial Rs 1.4 lakh crore for the project, which will be a cornerstone of the Viksit Bharat program. BharatNet’s mission is to bridge the digital divide, especially in rural areas, by providing reliable internet access to more households.

Technological experts widely acknowledge that while mobile communication is convenient and relatively easy to set up, it has inherent limitations. The radio waves used in mobile communication are subject to varying quality and bandwidth based on several factors, including the number of users connected to a tower, distance from the nearest tower, speed of movement, and obstructions like foliage and walls. In contrast, optic fibre offers immense bandwidth capacity coupled with extremely high consistency and reliability. Fixed broadband also delivers much lower latency—around nine milliseconds—compared to mobile broadband’s 28 milliseconds.

While mobile broadband costs around Rs 10 per GB, fixed broadband reduces the cost to as low as Rs 1-2 per GB.

Developed economies understand that achieving 100% mobile broadband penetration alone is insufficient to meet the rising demands of an increasingly data-driven world. Despite widespread mobile coverage, these nations prioritise fibre connectivity because of its superior bandwidth, reliability, and scalability. Fiber-to-the-home (FTTH) is essential for supporting data-heavy applications like 4K streaming, cloud computing, smart cities, and the Internet of Things (IoT)—applications that mobile networks cannot handle as efficiently.

The focus on household penetration is critical. Unlike mobile broadband, which caters to individuals, fixed-line connections power entire homes and businesses. Shifting to this household-level understanding is key to effective planning, ensuring broadband rollouts can accommodate the growing demand for high-speed, stable connections across multiple devices in homes, schools, and workplaces.

Today, almost all countries recognise that fibre networks are vital for future technological advancements, productivity improvements, and fostering innovation. Fibre also helps reduce network congestion and provides stable, high-speed internet access for industries and individuals. This foresight allows developed nations to maintain their competitive edge in the global digital economy.

For a digital economy like India, deploying multiple broadband technologies in a strategic, calibrated manner is essential for delivering high-quality, cost-effective broadband services nationwide. While mobile broadband will always serve as the quick and easy solution, it cannot meet the medium to heavy-duty demands that require more capacity, consistency, and quality. India must aim to increase fixed broadband availability tenfold to match the levels of comparable digital economies.

The author is the President of the Broadband India Forum.

Views are personal.

(Research inputs by Neha Hathiari)

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