New Delhi, Nov 18 (IEBusiness) The Telecom industry, which has attracted foreign direct investment of more than 32 billion dollars from April 2000 to June 2018, is expected to create an economic value of 217 billion dollars within next two years, a study said here.
India ranked 29th globally in revenue generation with 47 million dollars from the sale of mobile applications through iOS and Google Play. The top three are: the US with 3.2 billion dollars, Japan with 2.7 billion dollars and China (only iOS) with 2.4 billion dollars.
According to a study conducted by India Brand Equity Foundation (IBEF), 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 (DIPP), the cumulative FDI inflows into the telecommunication sector reached 31.75 billion dollars from April 2000 to June 2018, versus 15.67 billion 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 billion, internet subscriber base of 512.26 million, and wireless internet subscriber base of 491.1 million. Urban mobile internet penetration was 59 per cent and rural was 18 per cent.
Mobile applications are segmented basis the marketplace — Apple Store, Google Play Store and Windows and end user requirements like banking & finance, gaming, social networking, health and fitness, jobs, music, education, entertainment news and media, retail and travel, 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 billion dollars this year at a CAGR of 30 per cent. Around 500 million 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, the study said, 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 not too far away in India with 24-hour unmanned shopping experience using sophisticated Mobile Apps. Mobile apps will enable Internet of Things (IoT) taking Mobile App usage to greater heights. These advancements will attract more investment from companies, and spur a whole new generation of startups.