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With millions working from home, the fixed broadband subscriptions have surged, while data usage usage soared 25-30 per cent since the nationwide lockdown began on March 25.
This spike in consumption, however, has led to slower data speeds, according to a Crisil report.
The coronavirus-driven lockdown has come as a godsend to the fixed broadband sector, which has been stagnating with subscribers at 18-19 million since 2016, due to a intense price war in the mobile telephony space.
At 6 per cent, fixed broadband penetration in India is among the lowest in the world, compared with 55 per cent in China, 70 per cent in Eurozone and 80 per cent in Japan.
“In the medium term, we expect mobile tariffs to be hiked. That will help sustain some of the uptick in fixed broadband usage because its price differential with mobile data will reduce,” the report said.
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