Revenue from data services to touch $19.3 bn by 2020: Huawei report

Revenue from data services in India is expected to grow by 400 percent from $3.9 billion in 2011 to $19.3 billion by 2020, a report by Huawei and Ernst & Young states. According to the report, the top ten metro and tier-one cities are currently home to more than 60 percent of all broadband users, and more than 75 percent of all connections originate from the top 30 cities.

"Data revenues are expected to increase from $3.9 billion in 2011 to $19.3 billion by 2020, registering a 400 percent growth," Huawei India said in its report 'Connected possibilities: innovation, integration and inclusiveness'. The report estimates that the total number of broadband subscribers is expected to reach 563 million by 2020, of which 450 million will be wireless subscribers while 113 million will be fixed line users. According to the report, every 10 per cent increase in mobile penetration rate is expected to increase the GDP of the country by 1.2 percent.

Huawei's report is mighty optimistic about broadband's future in India.

However, the report also highlights that an estimated 700 million people in the world do not have access to broadband services due to cost barriers, lack of awareness and relevant content in the local context, especially for rural areas owing to affordability and accessibility problems. When compared with the other BRICI countries – Brazil, Russia, India, China and Indonesia – India brought up the rear in terms of hours spent online by the average Indian Internet user. The average Indian user spends only half an hour online everyday, which is the lowest among any of the countries compared in this report.

“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,” A Sethuraman, Executive Director, Huawei India said.

Cai Liqun, CEO- Huawei India stated, “One of the biggest innovations in the field of communication is broadband. 2012 is a big year for mobile broadband with the latest development in this sector- 4G/ LTE.”

The report also points out current trends and the impact of broadband on seven key industry sectors - education, healthcare, enterprise, BFSI, governance, M2M and entertainment. The report also takes a look at the future of these sectors with the current growth pattern of the broadband industry in mind.