Telecom industry to fuel India's growth

Twenty years and counting, India’s mobile telecom industry is still going strong and has been one of the most dynamic sectors that has not only evolved with time but has also played a crucial role in shaping India’s vibrant economy. Right from the days of the bulky luggable handsets to this age of 4G, India’s mobile telecom industry has certainly been a vital cog in the wheels of its development.  

From being just seen as an enabler in connecting people to people, today the telecom industry has innovated in smart solutions by connecting machines-to-machines (M2M). Ever since erstwhile telecom minister Sukh Ram made the first ever mobile call to former West Bengal Chief Minister late Jyoti Basu on July 31, 1995, floodgates just opened for the mobile telecom industry. No other industry unlike telecom has had far reaching impacts in developing the country in just 20 years.

With the dawn of the 21st century, India’s mobile telephony furthered the socio-economic growth as more and more parts of India got connected. From, healthcare, banking, education to energy, nothing has been untouched by innovations in the mobile telecom industry.

And now with India inching towards a digital revolution, mobile telecom industry has further boosted the GDP of the country. According to a study by global telecom industry association GSMA, Indian mobile service sector’s contribution towards the GDP is estimated to reach 8.2% or Rs 14 lakh crore by 2020. 

And why not? There has been a significant proliferation in the number of mobile telephone users in India, coupled with data explosion. India’s mobile penetration was 36% by 2014, with 453 million unique mobile subscribers, and by 2020 it will reach 54% with an estimated 734 million users.  According to World Bank, a 10% increase in mobile and broadband penetration increases the per capita GDP by 0.81% and 1.38%, respectively, in developing countries. One can only hope that by 2020 with 734 million mobile users, India’s GDP is certainly going to improve by leaps and bounds.

The mobile phone is now not just a means of communication, it is a driver of other industries as well. From transferring cash, to booking doctor’s appointment, renting a car and buying air tickets, everything is done at the tap of finger. Even a decade ago, it was so difficult to envisage a smart life driven by smartphones. No wonder that the pace at which India’s mobile telecom industry is progressing, it is estimated to create four million direct and indirect jobs (according to Randstad India) in India in the next five years.

While urban India has immensely benefitted with the revolution in the mobile telecom industry, rural India has also witnessed a significant rise in mobile internet. What is more surprising is the fact that in rural areas, mobile internet users have increased by 93% (according to TRAI) despite only 9% of the hinterland having access to mobile telephony.

The concept of M-wallets and payment banks , enabled by the telecom sector, also further financial inclusion by providing small savings accounts and remittance services to migrant labour workforce, low-income households, small businesses, and other unorganised sector entities and users. In rural areas, mobile telephony has also worked wonders in bridging the last mile connectivity gap in terms of delivery of public services.

M-commerce

There is a mobile commerce revolution taking place in India. As the mobile user base expands at an exponential rate, opportunities in m-commerce as well as in other areas will continue to multiply. Ecommerce companies, who want to expand into tier-I and tier-II cities, are dependent on the telecom operators to roll out 2G/3G/4G into such areas for connectivity. According to a report by venture capital firm KPCB, India has the highest share of mobile-based ecommerce sales globally at 41%. The leading ecommerce companies state that almost 70-75% of their online traffic comes from mobile phones and thus higher revenues are coming from mobile applications.

M-education

Education is the foundation on which rely the well-being, economic wealth and social prosperity for any society and yet problems like expansion, excellence and inclusion persist. The total literacy rate in India is 75% (2016). Half of India’s rural government schools’ pupil-teacher ratio is only 3.7%, much below what is mandated according to the Right to Education. Telecommunications can facilitate access to education in the remote areas; improve subject coverage as well as delivery.

Teachers and professors can improve their skill set in terms of information and also help in distance learning which will be facilitated by telecom sector. Today, Massive Open Online Courses (MOOCS) are trending, even globally. They are open and available to all and provide an opportunity to all those who do not have access to tertiary education because of reasons like cost, distance, language, and the need to work.

M-health

Healthcare system in India significantly lags behind its global peers. Although the National Health Rural Mission has facilitated various developments in the sector but the MDGs (Millennium Development Goals) are far within reach and to serve a population of about 1.2 billion.

The telecom sector, with its innovative and new technologies can help the health sector advance to greater heights. Along with government initiatives in the field of M-health, which has been launching various health apps like health alerts, updates and patient monitoring systems, there is a need from the doctors to adapt these technologies as they are the means to the end consumers of m-health.

E-visits too are trending, which provide affordable primary medical and diagnostic care to very large populations that do not have access today. Phone, SMS, email and video technologies stood out as the preferred mode of digital interactions. However, technology is not likely to replace doctor appointments completely. Most of the respondents preferred technology only for consultation, treatment reminders, information on side effects of the drugs, medication reminders. 

In another 12 months, India’s mobile internet users will jump to 300 million, nearly a two-fold jump from 159 million in 2015, making India one of the leading internet markets in the world, with 50% of the user base coming from just mobile internet. But the challenge remains mobile penetration, which stands at just 19.2% for India compared with 90% for other developing countries.

Even then, the future of India’s mobile telephony looks bright as telecom and IT convergence are working towards creating a smarter world for smarter people with a host of innovative services like m-banking, m-health, m-education and IoT (Internet of Things). Life has become so simple indeed, thanks to the mobile phone, which is still much maligned and blamed for modern day miseries. 

(The author is Chief Marketing Officer of Aircel)