Telecom Lead India: Telecom services in India contribute US$35-38 billion annually to the economy of the country, according to Huawei India report called Connected possibilities; Innovation, Integration and Inclusiveness.
According to Huawei, the non-voice /data revenue is expected to increase from US$ 3.9 billion in 2011 to US$ 19.3 billion by 2020, registering a 400 percent growth. On the other hand, the voice revenues are expected to decline from US$ 34.7 billion in 2011 to US$ 31.5 billion by 2020, registering a negative growth of 9.5 percent.
If the government continues to focus on its agenda for “broadband on demand” by providing easy, affordable and reliable broadband access to the masses, India is expected to reach 450 million accounting for 28 percent of the total wireless subscriber base in India.
In terms of real GDP at purchasing power parity, India ranks 3rd on the world map after the United States and China and has been maintaining a GDP growth rate of above 6 percent.
Telecom sector is amongst the leading sectors attracting FDI, accounting for 8.1 percent of the cumulative FDI equity inflows from FY01 to FY11. From FY08 through FY10, FDI equity inflows in the telecom sector increased rapidly at a CAGR of 42.3 percent to reach US$2.6 billion, due to the entry of international players and transfer of advanced technologies, the report said.
“One of the biggest innovations in the field of communication is broadband. As a committed player in the Indian ICT industry, Huawei always strives to evaluate needs of the Indian ICT industry and also provide need based solutions. 2012 is a big year for Mobile Broadband with the latest development in this sector- The 4G/ LTE,” said Cai Liqun, CEO- Huawei India, unveiling the report.
According to the report, every 10 percent increase in mobile penetration rate is expected to increase the GDP of the country by 1.2 percent.
The report also highlights an addition of net revenue of USD $ 31 billion (37 percent growth) and USD $ 27.5 billion (42 percent growth) in education and healthcare industries respectively and is optimistic that M-commerce would be next revolution in the telecommunication and banking industry providing the consumer with an opportunity to transact anytime and anywhere.
Huwaei’s report also elicits role of e-Governance in strengthening government processes and their evaluation.
The report estimated 700 million people in the world without access to broadband services due to cost barriers, lack of awareness and relevant content in the local context especially for rural areas.
“More than 60 percent of current broadband subscribers reside in the top ten metros and tier-I cities and more than 75 percent connections belong to top 30 cities. Only 5 percent of the broadband connections are in rural areas in comparison to 31 percent of total mobile telephones,” said A Sethuraman- executive director, Huawei India.
In comparison to other BRICI countries, India fares the lowest in terms of internet and PC penetration. Internet users in Indian on an average spend only 0.5 hr online each day, which is lowest rate amongst all the BRICI countries owing to these bottlenecks.
So far the Indian market has primarily been driven by the demand for voice services. The launch of third generation (3G)/Broadband wireless access (BWA) is likely to play a pivotal role in weaving the next round of aggressive growth for this industry and with the voice market stagnating its is data services that would contribute towards incremental revenues.
While the rural India has emerged as the new target market, but, the focus will be on network coverage and setting up infrastructure in the hinterland to achieve the anticipated growth.