India can generate $ 80 billion of revenue with 10 percent increase in mobile broadband penetration: GSMA

by CXOtoday Staff    Apr 03, 2012

The Indian government should facilitate the timely release of additional spectrum in a fair and transparent way for all stakeholders.

The mobile industry in India is set for immense growth as mobile broadband technologies such as HSPA and LTE start to proliferate, but there is scope for far greater development, according to the GSMA.

The GSMA, which represents the interests of mobile operators worldwide, said that to take full advantage of this, the Indian government should facilitate the timely release of additional spectrum in a fair and transparent way for all stakeholders.

“The benefits are clear to see, a 10 percent increase in mobile broadband penetration could contribute as much asUS$80 billion (INR 3,506 billion) of revenue across the country’s transport, healthcare and education sectors by 2015,” said Anne Bouverot, Director General of the GSMA.

The GSMA said India will become the second largest mobile broadband market globally within the next four years with 367 million mobile broadband connections by 2016. In doing so, the country will overtake the US, which will account for 337 million mobile broadband connections by 2016, but will still be second to China, which will have reached 639 million mobile broadband connections in the same period.

Sanjay Kapoor, CEO, India and South Asia, Bharti Airtel said that various studies have shown that a 10 percent increase in mobile penetration could lead to one percent increase in GDP, and a 10 percent increase in mobile broadband penetration could deliver a 1.4 percent increase in GDP. “Along with 2G and 3G, when 4G is deployed, India will be at the forefront of cutting-edge mobile broadband provision globally.”

Since 3G licenses were first awarded to mobile operators in India in September 2010, mobile broadband connectivity has grown steadily. There are now more than10 million HSPA connections across the country, and this is expected to grow exponentially, by 900 percent, to more than 100 million connections in 2014. This will make India the largest HSPA market worldwide within the next two years, surpassing China, Japan and the US in the process.