The GSMA on Wednesday said that a 10% increase in broadband penetration in India would contribute a combined $80 billion of net revenues across the country’s transport, healthcare and education sectors by 2015. The figures emerged 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 ($27.4 billion), 36.8% in education ($ 31.2 billion) and 18.8% in the transport sector ($20 billion).
Currently broadband penetration in India is 1.7%, and is forecast to rise to 12.5% 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 exponentially 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 Analysys Mason research, allocation of an additional 5MHz of 3G spectrum will lead to a 3.3% increase in Mobile Broadband penetration by population, enhancing GDP by $12.1 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. 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,” Robindhra Mangtani, Senior Director, GSMA, said.
“India is the second largest mobile market in the world and a vibrant and exciting growth market for Mobile Broadband – it has an opportunity to shape the mobile industry of the future. By acting now, 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,” Mangtani added.