HUAWEI LAUNCHES INDIA BROADBAND REPORT 2012
HUAWEI LAUNCHES INDIA BROADBAND REPORT 2012
Huawei Launches India Broadband Report 2012
- India to have 450 million wireless broadband base by 2020; Wireless broadband base to account for 28% of the total wireless subscriber base in India-
- Every 10% mobile penetration thrusts GDP up by 1.2%-
New Delhi, October 3 2012; Huawei India, a global leading Information, Communication and Technology (ICT) solutions provider today unveiled a comprehensive 108 page detailed report called Connected possibilities; Innovation, Integration and Inclusiveness. In the report prepared in partnership with Ernst & Young, the company pointed out current trends and impact of broadband on 7 key industry sectors namely- Education, Healthcare, Enterprise, BFSI, Governance, M2M and Entertainment. The report also forecasted the future these sectors with the current growth pattern of the broadband industry.
Today, India is touted to be one of the fastest growing economies across with an economy size estimated at US$1.3 trillion in fiscal year FY11 and the telecom services’ sector alone directly contributing US$35-38 billion annually to the economy. 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%. The country charted GDP growth of 8.5% [1]for FY11 (financial year ended March 2011). The telecom sector is amongst the leading sectors attracting FDI, accounting for 8.1% 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% to reach US$2.6 billion, due to the entry of international players and transfer of advanced technologies.
In his address to media, Mr. Cai Liqun, CEO- Huawei India expressed his delight on the unveiling of the report and stated, “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. Today we are here to come together to get a holistic view of telecommunications sector and analyze how the sector is poised for connecting possibilities and the future of broadband in India. I would like to thank Ernst & Young our partners for putting together such an informative report”.
The report not only highlight telecom sector’s which contribution towards GDP, but also how the sector catalyzes development in other sectors to additionally generate economic surplus. Per the evaluation every 10% increase in mobile penetration rate is expected to increase the GDP of the country by 1.2%. The report also highlights an addition of net revenue of USD $ 31 billion (37% growth) and USD $ 27.5 billion (42% 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. It also elicits role of E-Governance in strengthening government processes and their evaluation.
While the report presented a very optimistic picture of the growth of telecom and vis-୶is broadband in India, it did not overlook the various bottlenecks posed by accessibility and affordability issues in the telecom sector. 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% of current broadband subscribers reside in the top ten metros and tier-I cities and more than 75% connections belong to top 30 cities. Only 5% of the broadband connections are in rural areas in comparison to 31% of total mobile telephones”, Highlighted Mr. A Sethuraman- Executive Director, Huawei India. In comparison to other BRICI countries (Brazil, Russia, India, China, and Indonesia), 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. “Lack of rural penetration is directly proportional to the lack of awareness, access to affordable technologies and relevant content offered to the subscribers. Most content available today is in English and might not be relevant to the population residing in rural areas where regional content is important. We should thus aim to provide affordable devices and relevant content to ensure optimum connectivity”, added Mr. Sethuraman.
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. 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. 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% 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%. 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% of the total wireless subscriber base in India.
About Huawei:
Huawei is a leading global information and communications technology (ICT) solutions provider. Through our dedication to customer-centric innovation and strong partnerships, we have established end-to-end advantages in telecom networks, devices and cloud computing. We are committed to creating maximum value for telecom operators, enterprises and consumers by providing competitive solutions and services. Our products and solutions have been deployed in over 140 countries, serving more than one third of the world’s population.
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