India Broadband Growth: LCOs Partnership & Wired Internet Expansion

According to a FICCI-EY record, the active engagement of LCOs in broadband shipment will contribute in driving the growth of wired broadband. A current study performed by the All India Digital Wire Federation in collaboration with EY, covering greater than 28,000 LCOs, revealed that 3 out of 4 LCOs are either already supplying broadband solutions or plan to launch them for their television customers.

LCOs Driving Wired Broadband Growth

Bharti Airtel, India’s second-largest telecom operator after Dependence Jio, has embraced a similar strategy by partnering with LCOs to broaden its wired broadband reach. In its FY24 annual record, it said that its asset-light strategy via partnerships with LCOs is augmenting the rate of home-pass rollout and consumer additions.

In 2022, the Telecom Regulatory Authority of India (TRAI) recommended that the federal government take steps to promote the sharing of LCO cable television infrastructure with telecom provider (TSPs) to sustain last-mile broadband distribution.

TRAI Recommendations for Infrastructure Sharing

“LCOs are seeing their pay-TV client base decline, and numerous have started using broadband services. Their capacity to provide ISP services to end clients in a customised and cost-effective fashion is a strength they intend to take advantage of, but the high quality of service will continue to be the essential component of their success,” said Ashish Pherwani, Media & Enjoyment Leader, EY India.

Regional cord operators in India are becoming essential for broadening wired broadband, leveraging their existing framework to link End-users and isps. Dealing with declining pay-TV subscriptions, LCOs are partnering with major telecom companies like Dependence Jio and Bharti Airtel, as well as ISPs like Excitel, to supply broadband services.

Raina said the company is looking to increase Rs 200 crore as component of its development strategies from capitalists. Currently, it has one million broadband users and its 2023-24 loss and earnings stood at Rs 120 crore and Rs 486 crore, respectively. The loss was on account of capex depreciation, Raina claimed.

As of December 2024, the wired broadband user base stood at 41 million and is forecasted to possibly dual by 2030. In spite of this growth, wired broadband accounts for just 4.4% of the complete broadband user base of 945 million, with the majority relying upon wireless modern technologies such as 4G and 5G.

UCN Cord, a Nagpur-based cable TV and broadband service provider, is likewise providing packed cable and broadband services to its customers in order to take on the telcos and the ISPs. “We are additionally offering the alternative to our LCO partners to provide both cable television and broadband solutions,” claimed UCN Cable television supervisor Ajay Khamankar.

Excitel’s Partnership Strategy with LCOs

Excitel Broadband Chief executive officer Vivek Raina claimed that the business’s strategy is developed around partnering with LCOs for giving broadband with fibre. “We have partnered with 2,300 LCOs to supply fibre broadband to customers. It aids us to acquire customers and it opens up a new profits stream for the LCOs,” he stated.

For LCOs, a number of whom do not have scale, collaborations with ISPs use a much-needed possibility to diversify earnings streams. This change comes as their primary earnings from cable television deals with pressure because of decreasing pay TV registrations, driven by the expanding popularity of streaming platforms and free-to-air solutions like DD Free Recipe.

LCOs Diversifying Revenue Streams

Currently, it has one million broadband customers and its 2023-24 loss and profits stood at Rs 120 crore and Rs 486 crore, respectively.

Excitel Broadband CEO Vivek Raina claimed that the business’s method is developed around partnering with LCOs for giving broadband via fibre. “We have actually partnered with 2,300 LCOs to supply fiber broadband to customers. It’s a win-win partnership since we share 40% of revenue with them. It aids us to obtain consumers and it opens a new earnings stream for the LCOs,” he said.