10 percent increase in broadband penetration in India will contribute a combined $80 billion (INR 3,506 billion) of net revenues across the country’s transport, healthcare and education sectors by 2015, according to GSMA.
The figures come from a new study, commissioned by the GSMA and conducted by analyst firm Analysys Mason, on the economic impact of Mobile Broadband growth on these key industry sectors.
According to Analysys Mason, a 10 percent increase in broadband penetration will lead to net growth revenue increases of 42 percent in the healthcare sector (equating to an additional INR 1,215 billion or $27.4 billion), 36.8 percent in education (an extra INR 1,402 billion or $31.2 billion) and 18.8 percent in the transport sector (an additional INR 889 billion or $20 billion).
Currently broadband penetration in India is 1.7 percent, and is forecast to rise to 12.5 percent by 2015.
However, to achieve this it is essential that additional spectrum is released quickly, most notably the 700MHz and 2.6GHz bands, so that mobile operators can roll out next-generation Mobile Broadband networks and services and meet demand.
As of Q2 2011, there were 3.5 million HSPA Mobile Broadband connections in India and this figure is expected to rise to 225.5 million by the end of 2015, but only if the right amount of spectrum is allocated for mobile services.
According to previous Analysis Mason research, allocation of an additional 5MHz of 3G spectrum will lead to a 3.3 percent increase in Mobile Broadband penetration by population, enhancing GDP by $12.1 billion (INR 538 billion) by 2015.
Simply put, if the Indian government allocates sufficient spectrum in the near future, it will open up a staggering economic opportunity. However, the current lack of spectrum remains a formidable obstacle to India benefiting from Mobile Broadband services and the government meeting its stated broadband connectivity target of 160 million Internet connections by 2014,” said Robindhra Mangtani, senior director, GSMA.
India’s government must act quickly if it is to enact the proposed National Spectrum Act, which was announced by Communications Minister Kapil Sibal in April, and quickly allocate the urgently required spectrum to meet the high demand for Mobile Broadband services,” Mangtani added.
India’s hardware manufacturers and software companies have a huge opportunity to build a lead in developing supporting elements, which will not only transform Indian society but also, through a thriving export market, bring the power of Mobile Broadband to countries across the world.
By Telecomlead.com Team
editor@telecomlead.com
