Ronnie05's Blog

The Mobile Economy in India

Posted in Technology impact on economy and population by Manas Ganguly on December 19, 2013

Mobiles and Mobility in India is a empowering industry which is expected to grow 408% with 2012-20 @ 19% CAGR
This adds atleast 1.3 million jobs between 2012-2020 and…
.. contributes to 375% increase in public funding
This also means a 409% increase to infrastructure investments

India’s citizens rely on mobile technology and mobile-enabled services to a degree that few would have predicted only a few years ago. With nearly 900 million mobile connections across the country, India represents a quarter of all mobile connections in Asia Pacific, and this figure is expected to rise to 1.16 billion by 2017. With improved
spectrum pricing and management, growth of mobile broadband service is expected to continue, with 3G and 4G adoption projected to increase by 31% between 2013 and 2017.

Nevertheless, India still lags behind the world’s major economies in mobile maturity and penetration. Network investment by mobile operators is held back by low tariffs due to the market conditions, an unusually high level of competition, and the financial burden caused by government policies that channel funds away from the sector, such as the high cost of access to spectrum. Indian operators are amongst countries that have the highest debt and lowest profitability ratios in the Asia Pacific region. This affects their ability to upgrade consumer services, meet demand in highly populated urban areas and expand networks to provide coverage to people living in rural areas.

India is lacking a regulatory environment that allows the sector to surge ahead and deliver the full, transformative
power of mobile to all. To do this, the government must design policies and regulations — working with the mobile
industry — that maximise long-term private sector investment. In order to invest, the industry needs clarity on the direction and the overall economic and regulatory environment that will be put in place to support this path. Only with a sustainable mobile industry will India be able to achieve the vision described in the country’s National
Telecommunications Plan — “to provide secure, reliable, affordable and high-quality converged telecommunication services anytime and anywhere for accelerated, inclusive socio-economic development.”

Increased penetration of mobile technology in India will bring with it many socio-economic benefits. In Agriculture, mobile solutions improve yields and provide greater access to markets. Greater access to healthcare and reduced mortality are facilitated by mobile solutions, while mobile technology brings financial services to rural and underprivileged communities. With mobile solutions, education for all is a goal that is increasingly within reach. Government and Administration has an important role to play in all of these areas by removing barriers to the integration of mobile solutions in an increasingly connected world.

Excerpts from the GSMA BCG study on Mobile Industry in India

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