Indian broadband penetration boosts GDP

16 March 2011 |

Each 1% increase to wireless broadband penetration in India would add 162 billion rupees ($3.54 billion) or 0.11% to the country’s GDP by 2015, according to a report by Analysys Mason.

Of the total addition to GDP, 93 billion rupees ($2.04 billion) would come from direct impact, which refers to consumer and enterprise spend on devices and services while accessing wireless broadband; 29 billion rupees ($635.36 million) would come from ecosystem impact, which refers to revenues gained from value-added and other services enabled by wireless broadband); and 40 billion rupees ($876.36 million) would come from second-order impact, which rethe increase in productivity due to wireless broadband access.

Carriers in India are each allocated 5MHz of bandwidth. By 2015, a further 5MHz of 3G spectrum would increase GDP by 538 billion rupees ($11.8 billion).