India (IoT) can reach 2 billion connections by 2022: study

New Delhi, Dec 25 (GCBusiness) Internet of Things (IoT) market has the potential to reach two billion connections and unlock revenues of 11.1 billion dollars by 2022, an ASSOCHAM-EY joint report said.

About five new mobile connections per second are estimated to join the power of Internet in India by 2022, the report estimated.

The National Digital Communication Policy (NDCP) 2018 is a progressive policy that embeds broadband in the fabric of India’s digital economy and gives a roadmap for a digital future.

According to an ASSOCHAM-EY report — Propelling India to a trillion dollar digital economy — outlines immediate interventions and medium to long-term endeavours required to implement the vision and strategy of this transformative policy which has the potential to unlock a trillion dollar digital economy by 2022 and lead the Fourth Industrial revolution in India.

While potential is huge, India, however, currently lags behind the US, China and Korea in connectivity via optical fibre, stated the study. A meagre 25 per cent of telecom towers in India carry optical fiber whereas the share in the US, China and Korea is about 65-80 per cent.

The report said fiberisation of towers is critical in India. Nearly 60 per cent of the towers will need to be fiberised by 2022, as outlined in the NDCP 2018. As demand for 4G and then 5G grows, networks will become denser and deeper– making fiberisation an imperative, noted joint study on ‘Propelling India to a

trillion dollar digital economy’.

The emergence of new technologies is set to multiply the consumption of data, necessitating the need for installing more towers. Additionally, 1,00,000 telecom towers will be required to meet the growing demand for data across the country, noted the study.

With that, there is a need to upgrade backhaul networks and fiberise minimum of 60 per cent of mobile towers to support 5G ecosystem. Moreover, incentivising tower deployment and availability of land and buildings as potential cell sites in government facilities, will expedite tower deployment.

The increasing need for high-speed fixed broadband access is likely to be the primary driver for fiber to the home (FTTH) adoption in India. Going forward, FTTH is expected to account for a majority of the fixed broadband connections by 2022, helping to realise the Government’s target of covering 50 per cent of households.

The study added that the Right of Way (RoW) challenges in India largely stem from fragmented and non-uniform policies adopted by various states and local bodies. Moreover, FTTH construction cost per subscriber is higher in India as compared to other countries.

Some of the key recommendations in the study for Connect India include fast-tracking approvals and rationalising costs for Right-of-Way (RoW) to promote ease of installing telecom infrastructure, availability of adequate backhaul spectrum (E and V bands), and provide incentives for rollout and sharing of telecom infrastructure. Fiber will be critical for strengthening networks and backhaul. There is a need to create a common duct policy for deploying telecom infrastructure and enhance the scope of IP-I providers.

The study also proposes a light-touch approach for levying penalties on minor shortcomings and simplifying existing procedure for grant of licenses should be adhered to.

According essential infrastructure status to telecom will help promote ease of doing business, along with strengthening IPR framework. The study, highlighting the importance of securing India, recommends a balance between data protection and innovation that keeps citizens data secure and protected.

Via UNI-India

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