Telecom Industry May Contribute 8.2% to GDP Leveraging 5G by 2020

Telecom Industry May Contribute 8.2% to GDP Leveraging 5G by 2020

The telecom industry’s contribution to GDP is estimated to reach 8.2% by 2020. Industry players are slated to also leverage technologies to connect with global markets and ring in a fully networked, knowledge and services economy.

The Modi Government plans to make India 5G  ready by 2020 and plan to auction 5G spectrum later this year.

5G provides an opportunity for industry to reach out to global markets, consumers to gain economies of scale and citizens to reap benefits of doorstep governance and availability of services, medical support, benefit transfers, education, entertainment and also build a digital payments, knowledge and services economy.

The arrival of ultra fast 5G wireless broadband technology would ring in an era of inter-connected smart devices on a massive scale that would help unlock the transformational impact of Machine to Machine (M2M) and Internet of Things (IoT) Technologies for citizen centric services in India.

Upcoming 5G technologies are set to contribute $2.2 trillion to the global economy over the next 15 years, with key sectors such as manufacturing, utilities and professional/financial services set to benefit the most.

The telecom regulator had recommended the sale of about 8,644 units of frequencies across eight bands, including 4G airwaves in the 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2300 Mhz and 2500 Mhz bands and a debut for 5G spectrum in the 3.3-3.6 Ghz band which is collectively estimated to rake in Rs 5.6 lakh-crore for the government at base prices.

Digital Communications Commission (DCC) the apex decision making wing of the Department of Telecommunications (DoT), recently asked the sector regulator to review its recommendations, including the pricing and quantum of spectrum to be auctioned, giving a shaft of hope to industry that base prices could be lowered for what is likely to be India’s largest-ever spectrum sale.

The Survey said India’s mobile services industry had witnessed exponential growth, driven by affordable tariffs, wider availability, expanding 4G coverage and roll out of mobile number portability that have led to evolved consumption patterns. The wider mobile ecosystem, supported a whopping 32 million jobs (directly and indirectly) and also made a substantial contribution to the funding of the public sector with nearly $500 billion raised through general taxation.

The Survey also noted that the quantum of Foreign Direct Investment (FDI) inflows in Financial Year 2019 stood at $2.67 billion, which was more than double the $1.3 billion level witnessed in FY16.

Telecom Minister Shri Ravi Shankar Prasad said that the fall in telecom FDI inflows in Financial Year 2019 compared to FY18 levels could not be blamed on either financial stress in the sector or regulatory uncertainty.

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