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India set to surge in international bandwidth demand

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International bandwidth is expected to surge at a compound annual growth rate of 38% between 2021 and 2028, TeleGeography reports.

The rate of growth implies international bandwidth demand will increase 10 times over this period.

The research revealed that India is experiencing an influx in its data centres due to its significant market potential and relaxed policies and regulatory environment.

India currently has 11 cloud regions as of Q2, 2022.

Google recently launched a region in Delhi in 2021 and both AWS and Microsoft Azure plan to launch regions in Hyderabad soon.

“Our research demonstrates a clear growth in international bandwidth connected to India. But what’s remarkable is that we don’t see sufficient capacity available to match it. In fact, if new cables are not added, available capacity would likely be exhausted well before the end of the decade,” said Alan Mauldin, research director at TeleGeography.

“But this will change very soon. We expect to see multiple new submarine cables serving the Indian market by 2025.”

TeleGeography’s pricing research indicates that the exponential growth will make wavelength capacity from both India to Europe and Southeast Asia more expensive than other global routes.

These higher prices are a result of concentrated cable ownership, control of cable landing stations and fibre backhaul.

“A contributing factor to this is capacity availability; throughout the pandemic supply chain issues contributed to delayed upgrades. Moving forward, there is an opportunity for newer, higher-fiber count submarine cables to meet current demand and a clear opportunity for providers to step up and serve future demand with elevated capabilities,” Brianna Boudreau, Senior Research Manager at TeleGeography.

“Between now and 2025 at least six new subsea systems are slated to enter the market, with several more under discussion.”

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