Connectivity is at the heart of OTT’s success. India has witnessed enormous growth in broadband subscribers, from 550 million in February 2019 to 765 million in February 2021. However, the average mobile internet download speeds in India (17.77 Mbps) is far behind the global average of 55.07 Mbps, as of July 2021. Having said that, we all know that 5G data speed is expected to be around 10 Gbps, which will not only make for a rich user experience, but also revolutionize the content available online.
The roll-out of 5G networks would entail heavy investments in the form of Capex and spectrum. Telcos would make their ROI calculations based on use cases, which will thrive using the faster speed, higher bandwidth, and low latency offered by 5G. Over The Top (OTT) services, including streaming video, audio, and gaming, will provide many such use cases. OTT streaming services have grown significantly during the pandemic compared with preceding years. While the sector was riding on the back of strong socio-economic and demographic factors, the pandemic proved to be a catalyst, propelling the sector forward with its paid subscriber base growing 35% since early 2020. The OTT industry – video and audio – in India is expected to grow nine-fold between 2021 and 2027, making it the fastest-growing OTT market in the world.
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