A 10% Increase in Mobile Broadband Penetration Will Generate US $80 Billion (INR 3,506 Billion) in Extra Revenue for India’s Transport, Healthcare and Education Sectors, Says GSMA

NEW DELHI, August 10, 2011 -

Allocating spectrum for Mobile Broadband will have a huge impact on India’s GDP by 2015

The GSMA today announced that a 10% increase in broadband penetration in India will contribute a combined US $80 billion (INR 3,506 billion) 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 enhanced 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%(1), 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(2) 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. According to previous Analysys Mason research(4), allocation of an additional 5MHz of 3G spectrum will lead to a 3.3% increase in Mobile Broadband penetration by population, enhancing GDP by US$ 12.1 billion (INR 538 billion)by 2015.

Robindhra Mangtani, Senior Director, GSMA, commented: “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.”

Mangtani continued: “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.”

To view the reports, please follow these links: www.gsmamobilebroadband.com/resources/white_papers/list.aspx

About the GSMA

The GSMA represents the interests of mobile operators worldwide. Spanning 219 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organisations. The GSMA also produces industry-leading events such as the Mobile World Congress and Mobile Asia Congress.

For more information, please visit Mobile World Live, the online portal for the mobile communications industry, at www.mobileworldlive.com or the GSMA corporate website at www.gsmworld.com.

(1)  Source: National Broadband Plan
(2)  Source: Wireless Intelligence. Q2 2011
(3)  Source: Wireless Intelligence. Q4 2015
(4)  Source: Analysys Mason. December 2010

Priyanka Sethon, behalf of the GSMA, +91-981-044-9951, priyankaseth at corvoshandwick.co.in