GSMA predicts impact of Mobile Telephony on India Economy

A report titled “Mobile Economy India 2013”, developed by the GSMA in collaboration with the Boston Consulting Group, has revealed that, in 2012, the mobile ecosystem generated approximately 5.3 per cent of GDP for India, directly supported 730,000 jobs and an additional two million jobs when points of sale and distributors are included. The report released an in depth analysis of the socio economic impact of the mobile industry in India.

The report further predicts that, by 2020, mobile will contribute almost US$400 billion to India’s GDP, create 4.1 million additional jobs and invest US$9 billion in India’s infrastructure, with US $34 billion contributed to public funding.

With improved spectrum pricing and management, growth of mobile broadband services is expected to continue, with 3G and 4G adoption projected to increase by 31 per cent  from 107 million 3G and 4G connections in 2013 to 409 million connections in 2017.

The Indian mobile industry is fast-paced and innovative, but it currently lacks the regulatory environment to support its ambitions. The Indian Government’s target of increased rural coverage would be supported by a more flexible spectrum policy, particularly the release of more frequencies in the bands below 1 GHz and the development of allocation processes that do not focus solely on maximizing short-term spectrum fees, said Anne Bouverot, Director General, GSMA.

The report identified three regulatory policy areas that require particular attention including Spectrum Management, Universal Service Obligation Fund (USOF) Levy as well as balanced and evidence-based Radio Frequency Emissions Requirements.