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10% growth in broadband penetration will generate US $80 bn for India’s vital sectors: GSMA
TT Correspondent |  |  10 Aug 2011

The increasing broadband connectivity will provide a fillip to the country'' vital sectors, according to GSMA, a body that represents the interests of mobile operators worldwide in 219 countries.

 

 GSMA on Wednesday announced that a 10% increase in broadband penetration in India will contribute a combined US$80 billion (INR 3,506billion) of net revenues across the country’s transport, healthcare and education sectors by 2015. 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.

 

Broadband connectivity is a driver of socio-economic improvement, fuelling economic growth across all industry sectors and contributing to enhance GDP. According to Analysys Mason, a 10% increase in broadband penetration will lead to net growth revenue increases of 42% in the healthcare sector (equating to an additional INR 1,215 billion or US$ 27.4 billion), 36.8% in education (an extra INR 1,402 billion or US$ 31.2 billion) and 18.8% in the transport sector (an additional INR 889 billion or US$ 20 billion).

 

Currently broadband penetration in India is 1.7%, and is forecast to rise to 12.5% by 2015.As of Q2 2011, there were 3.5 million HSPA Mobile Broadband connections in India and this figure is expected to rise exponentially to 225.5 million by the end of 2015[3], but only if the right amount of spectrum is allocated for mobile services 

 

Robindhra Mangtani, Senior Director, GSMA, said “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.”

 

He said that 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.

    
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10 Aug 2011(IST)  
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