IoT Market in India to Reach 2 Billion Connections by 2022

Fibre-to-the-home (FTTH) services in the country will make up for most of the fixed broadband connections by 2022, according to a report 

The internet of things (IoT) market in India is estimated to reach two billion connections by 2022 and can unlock US$ 11.1 billion of revenues by that timeline, according to a joint report by ASSOCHAM and EY.

The country could also become a US$ 1 trillion digital economy by 2022, the report added.

Commenting on the findings, P Balaji, Chairman – National Council on Telecommunications & Convergence, ASSOCHAM and Chief Regulatory & Corporate Affairs Officer, Vodafone Idea, said, “With the right mix of accelerators, including the regulatory framework, government incentives and industry collaboration, India can be propelled to a trillion dollar digital economy by 2022.”

In India, five new mobile connections will be plugged on to the internet every second by 2022, as per the report estimates.

Promote investment

The report noted that there is a need for early rationalisation of licence fees, levies and taxes for promoting investments and reviving the financial health of telecom sector, which is already debt-laden, to be able to harness the new and emerging technologies.

In addition, the report called for speedy fiberisation of telecommunication towers in the country to support the next-gen 5G networks, cautioning that the country presently lags behind the US, China and South Korea on optical fibre connectivity.

In India, only 25 per cent of telecommunication towers carry optical fiber, while the share in the US, South Korea and China is around 65-80 per cent.

According to the report, India needs to upgrade backhaul networks and fiberise at least 60 per cent of mobile towers for supporting the 5G network, once it arrives in India.

Need for more telecom towers

There is a need for an additional one lakh telecom towers in order to meet the increasing demand for data across the country, since the advent of emerging technologies is set to push up data consumption.

Fibre-to-the-home (FTTH) services in the country will make up for most of the fixed broadband connections by 2022, and thus, realise the target of the government to cover half of the households, the report said.

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