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New GSMA Report Reveals Unique Role Played By Mobile In India's Transformation
Oct 22, 2013 (11:10 PM EDT)
NEW DELHI, Oct. 23, 2013 /PRNewswire/ -- The GSMA today released an in-depth analysis of the socio-economic impact of the mobile industry in India. The report, "Mobile Economy India 2013", developed by the GSMA in collaboration with the Boston Consulting Group, reveals 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 further predicts that by 2020, mobile will contribute almost US $400 billion to India's GDP, create 4.1 million additional jobs1 and invest US $9 billion in India's infrastructure, with US $34 billion contributed to public funding.
India is already the second largest market in the world in terms of mobile connections and unique subscribers2, with nearly 900 million mobile connections and 350 million subscribers. 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. However, the Indian mobile industry still lags behind most major economies in terms of mobile maturity and penetration.
"The Indian mobile industry is fast-paced and innovative, but it currently lacks the regulatory environment to support its ambitions," said Anne Bouverot, Director General, GSMA. "An absence of predictable, long-term policies in areas such as the allocation of radio frequencies is acting as a brake on investment. 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 maximising short-term spectrum fees."
Barriers to Change and Key Policy Asks
The report calls on the government to work with the mobile industry to design policies and regulations that maximise long-term private sector investment. In order to invest, the industry needs clarity on the direction of the overall economic and regulatory environment that will be put in place to support this path. The report identified three regulatory policy areas that require particular attention:
1. Spectrum Management
To increase the efficiency of spectrum use, the government is urged to clear the way for market-driven sharing and trading of spectrum resources. The government is also encouraged to adopt lower spectrum reserve prices. TRAI's recent proposal is a step in the right direction.
2. Universal Service Obligation Fund (USOF) Levy
3. Balanced and Evidence-Based Radio Frequency Emissions Requirements
Enabling Power of Mobile
"India is on the cusp of dramatic transformation, both economically and socially, through mobile," continued Bouverot. "The mobile industry is ready to work closely with government, as well as other adjacent industry sectors, to accelerate growth through mobile, increasing technological innovation in India and enhancing the lives of all its citizens."
The full report can be viewed here: http://www.gsma.com/mobileeconomyindia
Notes to Editors
2Mobile connections refer to total unique SIM cards (or phone numbers, where SIM cards are not used) that have been registered on mobile networks. Unique subscribers refer to individual mobile users.
About the GSMA
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.