Fixed Line Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Fixed Line Services Category Overview

The fixed line services category is anticipated to grow at a CAGR of 5.20% from 2023 to 2030. In 2022, the category size was estimated to be valued at USD999.75 billion. The consistent and stable connectivity service offered by the category makes it ideal for critical applications like business communications, remote work, and online learning. Higher bandwidth and faster internet speeds compared to wireless options further fuel the category demand which supports data-intensive applications, smart homes and IoT. The infrastructure such as fiber-optic networks offers scalability & security and the potential to meet future technological advancements and bandwidth requirements, making it a preferable option for businesses. Growing consumption of high-definition streaming content and online entertainment also supports the category rise. In August 2023, Reliance Jio surpassed BSNL to take the top spot among India's fixed-line service providers. According to Telecom Regulatory Authority of India (TRAI) subscriber report for August 2023, Jio has 73.52 lakh wireline subscribers, compared to 71.32 lakh for BSNL.

With more environmental, social, and corporate governance (ESG) plans in place to reduce environmental impact, telcos are continuing to promote change across the industry. The majority of operators are converting their ageing copper and cable networks to full or deep fiber-to-the-home networks. When compared to access options based on copper, fiber is 85% more energy efficient per subscriber. In the age of 5G and wireless connection, the future of fixed-line broadband is complicated and multifaceted. Companies are attempting to positively minimize their environmental impact in the circular economy through improvements in precision manufacturing and the use of data analytics to the manufacturing process. 

The category faces high competition arising from various services providers offering similar services, pricing strategies, and technology options. Companies constantly vying for customers through promotion and offers. High initial investments, technical expertise, and regulatory compliance can act as barriers to entry, limiting the number of large players and allowing smaller ones to compete in specific niches. Additionally, there is future competition from other technologies, such as satellite broadband and potentially 5G/6G wireless networks. American multinational telecommunications holding firm AT&T in 2022 invested approximately USD24 billion on fiber and 5G network, and a similar amount was anticipated to invest in 2023. AT&T has spent more than USD140 billion on infrastructure over the last five years.

Building new telecommunications infrastructure and services is quite expensive. Existing network upgrades can be as costly. Both demand significant capital outlays. The key cost factors for wired telecommunication systems include infrastructure setup, equipment, continuous maintenance, labor, cable installation, switching equipment installation and regulatory compliance. The average cost of installing fiber optic for high-speed internet connectivity to homes and businesses-either underground or through aerial fiber-is around USD1,000 to USD1,250 per residential residence passed, or USD60,000 to USD80,000 per mile. An increase in bandwidth also raises the cost of a network connection.  A throughput capacity of 1 gigabit per second (Gbps) will cost more than one with a capacity of 250 Mbps in a Dedicated Internet Access (DIA) link. The supplementary expenses factors are the permissions, licenses, and authorizations from municipal and other governmental bodies that must be secured before construction.

Sourcing of the category requires identification and partnering with vendors and suppliers who can provide the required equipment, components, and services at competitive prices. Fixed broadband and telephone services fall under this category. The American company Verizon surpassed competitors AT&T and Deutsche Telekom globally in 2022, with a worth of USD67.44 billion. Singapore with an average of 242 Mbps, had the fastest fixed broadband internet speed. The United Arab Emirates came in second with an average fixed broadband internet speed of about 217 Mbps, followed by Chile. Security and compliance, customer support, coverage, reliability, and uptime are other informed sourcing practices for the category. 

Fixed Line Services Procurement Intelligence Report Scope