According to a recent report published by Assocham and EY, Internet of Things (IoT) has the potential to reach an estimated 2 billion connections in India, unlocking revenues of $11.1 billion by 2022.
The reports states, by 2022, five mobile connections per second are estimated to join the power of the internet. Nearly 50 per cent of the households are likely to be connected through fixed broadband. Connectivity will move beyond people to connect billions of devices, vehicles, household appliances and machines, the study said estimating that in a hyper-connected India, the Internet of Things (IoT) has the potential to reach 2 billion connections, and unlock revenues of $ 11.1 billion.
The joint report highlights that while India holds huge potential, this promising market currently lags behind the US, China and South Korea in connectivity via optical fibre.
Recently, Telecom Minister, Manoj Sinha informed the Parliament that the government’s BharatNet scheme has connected 1.2 lakh of the targeted 2.5 lakh gram panchayats through the fibre with 1.16 lakh of them ready with broadband services as well. That apart, as fiberisation of towers is critical in India, the report compares only 25 per cent of telecom towers in India carry optical fibre whereas the corresponding share in the US, China and Korea is about 65-80 per cent.
Nearly 60 per cent of the towers will need to be fiberised by 2022, as outlined in the National Digital Communications Policy (NDCP) 2018, notes the study titled ’Propelling India to a trillion dollar digital economy’ As demand for 4G and subsequently 5G grows, networks will become “denser and deeper” making fiberisation an imperative, it said.
“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,” it said. The study also underscored the need to upgrade backhaul networks and fiberise minimum of 60 per cent of mobile towers to support 5G ecosystem.