5G to take India's digital economy to $1 trillion by 2025

08 October 2018 Consultancy.in

The digital revolution is well underway in India, driven by the advent and rapid adoption of 5G technology, according to a new report from global professional services firm Deloitte. By 2025, 5G technology's impact on other sectors is expected to take India’s digital economy to a staggering value of $1 trillion.

Deloitte has been monitoring the progress of India’s digital market on a regular basis, in light of the sector’s potential for exponential growth in the near future. In January, the firm released a report on India’s technology, media and telecommunications (TMT) segment with forecasts for consistent growth.

Among a range of factors the fundamental reason behind the growth is the expected expansion in the base of online users in India, which will reportedly reach 850 million people by as early as 2025. According to a new report from Deloitte, India’s digital market will surpass $1 trillion around the same period.

Advantages of 5G

As per the report, this growth will primarily be facilitated by the rapid expansion of 5G technology in the country, which will not only boost revenues for the telecom sector, but is expected to have a far reaching impact across other industries as well. For the telecom sector, 5G offers significant enhancements on the current Long Term Evolution (LTE) technology.

Specifically, these enhancements will allow for more cost-effective access to the spectrum, and consequently a low-cost method of network distribution. The enhancements also offer greater energy efficiency and consist of smaller cells that enable more network density, all in addition to offering greater network performance.

Internet speeds under 5G technologies are being designed to reach up to 10 GBPS with a latency of less than 1 millisecond. Speeds of this nature will strongly facilitate the Internet of Things revolution that is making its way through the digital market in India, as will the higher frequency rates employed by the network.

Key 5G characteristics

The expansive reach of the new technology has not escaped the attention of policy makers. The Government of India’s Department of Telecom has called for the development of a strategic plan to facilitate the introduction of 5G technology across the country, included in its Draft National Digital Communication Policy.

The Department of Telecom has also established the ‘5G India 2020’ forum as a platform for discussion and the exchange of ideas. The objective of the forum is to develop an ecosystem for the commercialisation of 5G technology, with hopes that 5G services can be made operational in India by 2020.

The new technology has also created room for new players in the networking supply chain. As explained by Hemant Joshi, TMT Leader at Deloitte India, “New business models and intermediaries are emerging in the 5G value chain to cater to the need for connectivity and for providing differentiated services to niche market segments as well as customers.”

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Urban transport remains the primary area of investment in Smart Cities

08 April 2019 Consultancy.in

Examining the progress in the government of India’s Smart Cities Mission, global professional services firm Deloitte has revealed that the majority of funding for the scheme is being drawn from the central government, while the investments are focused primarily in the urban transport sector.

The Smart Cities Mission was launched by the Indian government in 2015, with an estimated project value of approximately $14 billion. The scheme aims at developing a number of urban financial centres across India, each of which is endowed with the latest in Information Communication Technology.

By definition, all functions within a smart city are carried out in the digital sphere. According to the World Bank, a smart city is a technology-intensive city that has sensors installed everywhere and offers highly efficient public services using information gathered in real time by thousands of interconnected devices.”Key components of a smart city

Deloitte breaks the characterisation of a smart city down into six primary components. The first is smart governance, which entails the migration of the entire state infrastructure and citizen services to the online domain, facilitated by the presence of a strong IT infrastructure

The second component described by the Big Four accounting and advisory firm is smart living, which includes state-of-the-art facilities for sewage & sanitation, water supply, electricity, housing and a number of other aspects of daily life. These constitute the core infrastructure of a smart city.

In addition, a smart city consists of smart people, which means a comprehensive education programme and an abundance of cultural activities. Smart mobility is another key aspect of a smart city, which not only includes a solid walking infrastructure, but also ICT-based transport and traffic control.Overview of Smart Cities Mission progress

The last two components, as per Deloitte are smart environment and smart economy. The latter ensures that most residents of a smart city have access to employment opportunities, while the former entails the absence of pollution, green architecture, and a reliance on renewable energy.

Building on these components, the scheme has integrated an increasing number of ctiies within this programme, starting with 60 in 2016 and 30 in 2017. By June last year, the North Eastern city of Shillong was shortlisted to be the 100th smart city in the country.

Once a city is selected to be a part of the Smart Cities programme, Deloitte identifies three types of development that are conducted in the urban centres. The first comes under the bracket of Redevelopment Projects, which include replacements of various aspects of the current built environment. Investments in 99 cities by sector

The second comes under the broad ambit of Retrofitting Projects, which entails the addition of new infrastructural development in order to facilitate greater connectivity in the city. Thridly, the firm identifies Greenfield Projects, which include the introduction of smart solutions in “previously vacant areas.”

While the majority of the investment in the Smart Cities Mission is drawn from the central government, Deloitte’s analysis reveals that the smart mobility component is drawing the most funding, followed by area development and economic development. Energy, ICT solutions and housing follow as the next biggest priorities.