Ericsson white paper: Mobile Broadband to drive India’s digital vision

  • White Paper talks about the role of government and industry towards bringing the Networked Society to life in India by the year 2020
  • India can reach 600 million mobile broadband subscribers with 20 percent of mobile broadband subscriptions on 4G in 2020

 

  • Data share in overall revenue of telecom operators to rise from 10-12 percent in 2013 to 35-40 percent in 2020

 

Ericsson (NASDAQ:ERIC) today released a White Paper entitled “India 2020: Bringing the Networked Society to Life” on the role of government and industry towards making ‘Digital India’ a reality by the year 2020. According to the Ericsson White Paper, to fulfill the Indian Government’s Vision for broadband inspired growth, operators will need access to more spectrum from the government and will themselves need to build new network capabilities and new revenue models so that a viable, long-term strategy can be evolved.

 

Heterogeneous networks with a mix of macro cell sites, small cells and Wi-Fi hotspots will be fundamental to manage coverage, capacity and quality of performance for users.

Smartphone prices are expected to fall by 40-50 percent over the next three years. As a result, the number of subscribers able to afford smartphones and services are expected to reach over 700 million by 2020, up from 110 million in 2013. The number of mobile broadband subscribers is expected to grow from 70 million in 2013 to 600 Million subscribers in 2020, with 20 percent of the mobile broadband subscriptions expected to be 4G in 2020.

 

The increasing number of subscribers, growing affordability of smartphones, and government initiatives such as the National Optical Fiber Network (NOFN) will drive internet connectivity in India. User demand for internet access will drive WCDMA/HSPA population coverage from 20 percent in 2013 to 90 percent in 2020. Ericsson estimates that the estimated blended data usage per subscriber in 2020 will be 600-850 MB.

 

The revenue mix of Indian operators is expected to evolve to include a higher contribution from data-driven 3G and 4G service revenues in future. Data revenues will represent an increasing proportion of the total, and are expected to rise from 10–12 percent in 2013 to 35–40 percent by 2020, driven by a growth in data subscribers as well as usage per subscriber. Opportunities in emerging services such as m-health, m-education, m-commerce and m-banking are expected to have long-term potential as operators, regulators and other value chain players (such as device vendors, content providers and app developers) increase their focus and take initiatives to promote health, education and financial inclusion among the population.

 

Fueling and sustaining mobile broadband growth in India will require access to additional radio spectrum; it is the basic resource required for building efficient networks able to serve large numbers of subscribers generating large amounts of traffic.

 

Ajay Gupta, Vice President and Head of Strategy & Marketing at Ericsson India, says: “Mobile Broadband will be the platform on which the ‘Digital India’ vision can be delivered. For this we will need the release of additional spectrum in the relevant bands. This will contribute to affordability of services, and harmonization of spectrum will allow a lower-cost device ecosystem to evolve. Operators in India have far less spectrum than their peers globally with high mobile broadband penetration. Spectrum will play a key role in driving mobile broadband growth in India in the long run, and will be an increasingly important driver of capacity, user experience, and quality.”

 

The White Paper proposes that the Indian government’s broadband penetration target of 600 million connections by 2020 can be achieved if sufficient spectrum is made available in a timely way in globally harmonized bands. Additionally, industry and government must work together to ensure contiguity of spectrum to deliver higher bandwidth per user. The availability of sub-USD50 handsets, accelerated and streamlined spectrum allocation process, differentiated 3G and 4G networks based on high speeds, attractive data packages and good user experience will be critical to driving demand in India.

 

NOTES TO EDITORS

Download high-resolution photos and broadcast-quality video at www.ericsson.com/press

Ericsson is the driving force behind the Networked Society – a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, businesses and societies to fulfill their potential and create a more sustainable future.

Our services, software and infrastructure – especially in mobility, broadband and the cloud – are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.

With more than 110,000 professionals and customers in 180 countries,we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world’s mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions – and our customers – stay in front.

Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2013 were SEK 227.4 billion (USD 34.9 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.

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FOR FURTHER INFORMATION, PLEASE CONTACT

Gaurav Sharma
Phone: +91 98 718 233 39
E-mail: gaurav.z.sharma@ericsson.com

Kanika Bedi
Phone: +91 98 718 585 41
E-mail: kanika.bedi@ericsson.com

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