Telecom industry likely to garner USD 217 billion economic value by 2020

India ranked 29th globally in revenue generation with 47 mn dollars from the sale of mobile applications through iOS and Google Play. The top three are: the US with 3.2 bn dollars, Japan with 2.7 bn dollars and China (only iOS) with 2.4 bn dollars.

According to a study conducted by India Brand Equity Foundation, 100 per cent FDI in the telecom industry has attracted smartphone makers and application developers.

As per data released by the Department of Industrial Policy and Promotion, the cumulative FDI inflows into the telecommunication sector reached 31.75 bn dollars from April 2000 to June 2018, versus 15.67 bn dollars from April 2000 to May 2014.

The study said in June, 2018, India was the world’s second largest telecommunications market with a wireless subscriber base of 1.15 bn, internet subscriber base of 512.26 mn, and wireless internet subscriber base of 491.1 mn. Urban mobile internet penetration was 59 per cent and rural was 18 per cent. India is the second largest market for mobile application downloads. In 2017 users downloaded 58 bn out of 175 bn applications. Mobile applications are segmented basis the marketplace – Apple Store, Google Play Store and Windows and end-user requirements like banking and finance, gaming and social networking, the study added. The growing usage of mobile internet has created a new market for advertisers. Digital advertising spend is expected to reach 1.7 bn dollars this year at a CAGR of 30 per cent. Around 500 mn new internet users may be added in India within the next five years, opening a new phase of development in the mobile industry.

India’s internet usage is in a growth trajectory, and there are significant opportunities for growth of Mobile Apps in social networking, online shopping, mobile e-commerce and technology enabled applications segments. Automated shopping is on the anvil with 24-hr mobile-apps driven unmanned shopping experience.