Digital Infrastructure - Rajat Kathuria Director and CE, ICRIER 3rd May, 2018 - Research and ...
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Digital Infrastructure
Rajat Kathuria
Director and CE, ICRIER
3rd May, 2018
Outline
• India’s Digital Economy
• Data Fuelling the App Economy
• Digital Deficits
• Apps: Enhancing Efficiency and Creating Value
• State level Initiatives : e-Governance
• Digital India and Financial Inclusion
Digital India Potential and Challenges
India’s maturing startup ecosystem
Innovations and New Technology
Smart Cities, Smart Transportation and Clean Energy
Automation and the Job Market
Digital India Initiatives – Bharat Net, Satellite services, Spectrum
Digital Economy at a Glance
The Digital Economy in India
•India was ranked 121
among 157 countries in
terms of progress in new
ICT in a report by the ITU
•In India, mobile data
traffic will grow 7-fold from
2016 to 2021, a compound
annual growth rate of 49%
India Global •In India, mobile data Growth of Mobile Internet Users in
Particulars
2016 2021 2016 2021 traffic will reach 2.0 India
Internet Users (% of
28% 59% 44% 58% Exabytes per month in 20.00%
Population)
2021, up from 266 15.00%
Devices and Connections
per Capita
1.1 1.5 2.3 3.5 Petabytes per month in 10.00%
18.2 27.5 2016 5.00%
Average Speeds 6.6 Mbps 53 Mbps
Mbps Mbps
0.00%
Average Traffic per Capita 2016 2017 2018 2019 2020 2021 2022
1.3 GB 4.7 GB 12.9 GB 35.5 GB
per Month
Source – Data obtained from TRAI Performance Indicator Reports, CISCO VNI
and Statista
Digital Deficits
• There is a significant urban-rural divide, with
urban teledensity at 150% as compared to 47% Average Peak
% Above 4 % Above 10 % Above 15
in rural areas. Year Connection Connection
Mbps Mbps Mbps
Speed (Mbps) Speed (Mbps)
• Around 83% of India’s current demand for
handsets is met via imports
2013 (Q4) 1.5 10.9 3.60% 0.40% -
• Different states have varying procedures and 2 14.5 7.80% 1.10% 0.40%
costs to obtain right of way approvals – while 2014 (Q4)
approximately 150,000 additional towers will be 2015 (Q4) 2.8 21.2 17% 2.80% 1%
required to provide pervasive mobile 4.1 27
2016 (Q3) 30% 6.60% 2.60%
connectivity
2016 (Q4) 5.6 - 38% 14% 7.30%
• India ranks 125th globally in terms of fixed
broadband penetration 2017 (Q1) 6.5 41.4 42% 19% 10%
• Average operator spectrum holding in India is • The pre-requisites for 5G include spectrum policy reform
around 18MHz, which is amongst the lowest inclusive of cost effectiveness of harmonisation and delicensing of
globally spectrum. Use of unlicensed spectrum bands like E-bands and
• A report by Akamai technologies ranked India V-bands can aid last mile mobile connectivity issues and help
89th in connection speeds, with an average speed in extending broadband connectivity from existing points of
of 6.5Mbps, marking an 87 percent year-on-year presence to nearby locations for a number of applications in
change (Quarter 1 2017) urban, semi-urban and rural areas
Source – AKAMAI State of the Internet Reports
Financial Year In Rs. Crore In USD million
2000-01 784.16 177.69
FDI
2001-02 3938.46 873.23
2002-03 907.73 191.6
INFLOWS
2003-04 408.78 88.87
2004-05 569.54 124.53
2005-06 2774.18 623.16
ERRATIC 2006-07
2007-08
2155.08
5102.61
477.74
1261.46
BUT 2008-09
2009-10
11726.87
12338.32
2558.39
2553.95
GROWING 2010-11
2011-12
7542.04
9011.53
1653.23
1922.25
2012-13 1654.3 304.60
2013-14 7,987 1324.98
2014-15 17,372 2845.07
2015-16 8,637 1319.43
2016-17 37,435 5591.49
Data: Fueling the App Economy
• Between 2013 and 2020 the division of the digital • App Annie ranked India as the 4th largest app economy in the world
universe between mature and emerging markets (e.g.,
China) will switch – from 60% accounted for by mature • Mobile App Usage in India grew around 43% over the past year,
markets to 60% of the data in the digital universe coming compared to a global average of 11%
from emerging markets. (IDC, 2014)
• For example, 25% of the population in India use ride-sharing
• Gartner estimates that public cloud services in India will applications such as Uber and the like for everyday commuting,
increase by 38% to reach US $1.8 billion in 2017, (BCG- putting India at first in the ride-sharing segment as compared to
TiE Report, 2017)
other countries across the globe.
400
370.77
Number of social network users in India
350 from 2015 to 2022 (in millions) 336.18
300 292.43
Number of users in millions
258.27
250
226.06
196.02
200
168.1
150 142.23
100
50
0
2015 2016 2017* 2018* 2019* 2020* 2021* 2022*
Apps: Enhancing Efficiency and Creating Value
• Improved access to medical facilities in smaller towns.
• The feedback and rating system has created more transparency
• The online consultation feature enables doctors to see more patients , thereby increasing the
efficiency of health care services
• The app has promoted Medical Tourism
109 daily active users, 300-350 missed calls and 40-50 orders received per day.
Reduction in cost of renting equipment between 10%-20% in some villages.
Planning in advance allows machinery bookings to be aggregated within a single location,
optimizing logistics and reducing fuel costs.
A formal framework enables farmers to opt out of informal borrowing at exorbitant rates of interest.
It offers users 15 day loans at a 1% rate of interest.
Sharing model generates a return of 16%-17% for machinery suppliers
•Most of BYJU’s students come from outside the top ten cities. The app enables students to track their
learning curve.
•Developing world class content in education by collaborating with child psychologists and graphic
designer
• For the 800 empanelled beauticians across 8 cities (2017), there has been a 2-4 fold increase in
Continue… earnings
• Standardization in pricing and service experience enabled by training enables quality assurance
• Facilitated the elimination of middlemen,
• Helped professionals market their skills and created a network of micro-entrepreneurs.
• In 2016, online bookings accounted for $13 billion in a $47 billion market, driven by apps that allow
flexibility to make bookings for spontaneous travel plans.
• 145% rise in domestic hotel transactions along with a 59% increase in international hotel bookings in
2016.
• It is driving the Middle India agenda by building reach and penetration beyond metro towns
• Opportunity for smaller businesses to grow
• According to Wynk, Piracy in music has been curbed by 30%-35%.
• The number of songs played online rose from 40,000 to 4 Million from 2014 to 2015 and 20% of this
Hansa Cheetah logo growth can be attributed to Wynk.
• About 75%-80% of Wynk’s users belong to the non-English speaking, semi-literate category.
Shared Economy Model: Creating New
Business Opportunities and Jobs
State level Initiatives : e-Governance
MP Mobile APP: MP Mobile is a new platform of the State that brings together various G2C services offered by several
Departments /Agencies / Corporations / Universities of Govt. of Madhya Pradesh as well as B2C services, at the convenience of
citizen’s fingertips. MP Mobile presently has a total of 2, 13,563 downloads and 27,578 active users. It has benefited thousands of
citizens in the state.
Akshaya, an ambitious endeavor of the State of Kerala is the largest rural e-literacy training project worldwide organized ever
and concluded by transforming 32.8 lakh citizens benefitting from the initiative. More than 1.81 crore citizens have been
enrolled under the UID through Akshaya centers in Kerala It provides provision for making online application, processing and
sanction of educational assistance. Around 3 lakh students across 3463 educational institutions have been benefitted.
Drishtee is an organizational platform for developing IT enabled services to rural and semi-urban populations through the
usage of state-of-the-art software. It is implemented in Haryana, Punjab, Madhya Pradesh, Gujarat, Orissa, Drishtee is
capable of enabling the creation of approximately 50,000 Information Kiosks all over India within a span of six years. These
kiosks would potentially serve a market of 500 million people, with aggregate discretionary purchasing power of Rs. 100 billion
(Rs. 10,000 crores). In less than two years, Drishtee has successfully demonstrated its concept in over 90 kiosks across five
Indian states.
Land Record Digitisation Karnataka’s is biggest achievement till now has been digitizing land records. For years, there was a
manual system of handling land records and farmers trying to receive their land records had to approach the Village Accountant
to get a copy of the Record of Rights, Tenancy and Crops (RTC) – a document needed for many tasks such as obtaining bank
loans. This whole process would take one to two years.The government’s solution to this was Bhoomi system, under which the
Department of Revenue set up 177 computerized land record kiosks (Bhoomi centers) and nearly 20 million records of land
ownership of 6.7 million farmers in the state of Karnataka were digitized.
10Digital India and Financial Inclusion
Pradhan Mantri Jan Dhan Yojna : Beneficiaries as on 25/04/2018
Number of Beneficiaries at Number of Beneficiaries at
No Of Rural-Urban Female Number of Total Deposits in Accounts(In Number of Rupay Debit
Bank Name / Type rural/semiurban centre urban metro centre bank
Beneficiaries Beneficiaries Crore) Cards issued to beneficiaries
bank branches branches
Public Sector Banks 13.69 11.78 13.35 25.47 65098.69 19.11
Regional Rural Banks 4.28 0.79 2.77 5.06 13557.87 3.67
Private Sector Banks 0.60 0.40 0.52 0.99 2215.11 0.92
Grand Total 18.56 12.96 16.65 31.52 80871.67 23.71
Source: PMGDY WebsiteDigital India Future and Potential and
ChallengesIndia’s maturing startup ecosystem
India is the world’s third largest startup hub; a reported
•According to a new market map by CB Insights, there are 1,000 new companies were incorporated in 2017.
197 companies in the world that can be currently identified
as “unicorns” as they have earned a valuation of $1 billion
and above.
•E-Commerce/Marketplace, Internet Software & Services,
FinTech, Social, Cybersecurity, On-Demand, Big Data,
Healthcare, Media, Hardware, Mobile Software & Services,
Real Estate and Other.
• Currently, India’s homegrown e-commerce giant Flipkart
with a valuation of $10 billion is the only Indian startup in
the top 15 decacorns list.
•Foreign companies looking to partner with Indian startups
will not only gain new market access, they will also access
new funding opportunities. Ratan Tata, for example, recently
co-founded a US$300 million venture capital fund for Indian
startups in partnership with the University of California.Innovations and New Technology
Initiatives and Investments in New Technology Innovations
Company News Flow
Ericsson Has partnered with Bharti Airtel, signed MOU with them and IIT Delhi
AT&T By the end of 2018 they will offer 12 markets with 5G.
Reliance Jio Jio has tied up with Samsung to bring 5G to India
Airtel It has conducted successful network trial with Huawei.
Source – Compiled by author from secondary sources on the internet
Ericsson had invested $4 billion in R&D in 2016, and recently has raised $370 million to invest in 5G
development and other mobile innovation.
DoT, in partnership with IIT – Madras, will set up a development centre to work on 5G technologies that
will enable new applications like the Internet-of-Things.
The pre-requisites for 5G include spectrum policy reform inclusive of cost effectiveness of harmonisation
and delicensing of spectrum. The other challenge in upgrading to 5G is the accumulation of Indian patents
with by non-Indian firms, dependence on which can limit the potential of domestic manufacturers.Smart Cities, Smart Transportation and Clean Energy
A major component of the smart city
mission is providing efficient urban
Cities of the future will mobility and public transport system.
soon account for 90% of Smart transportation system involving GPS
the world’s population and digital technologies such as Cloud-
based services, Big Data and Analytics, and
growth, 80% of its Internet of Things (IoT) will form the core
of India’s transformation from a
carbon emissions and conventional transportation model to a
shared, electric and connected mobility
75% of its energy future.
consumption. Connected technology would encourage
collaborations between electronic
device manufacturers, IT system
integrators and ISPsIndia's Transition To Digital Has Caused A Spike In Cyber
Attacks
• With rise in digitization in India, cybercrimes have been on the rise too. McAfee Labs, in its Q2-
2017 report counted 311 publicly disclosed security incidents. It reported that security teams
face 244 new cyber threats every minute
•
• 79% of Indian organisations have identified cyber security as one of the top five business risks.
• The Indian Computer Emergency Response Team(CERT-In) stated that until June 2017 alone,
India witnessed more than 27,000 cyber security threats.
• Industry partners in India, such as the Information Systems Audit and Control Association
(ISACA), the National Association of Software and Services Companies (NASSCOM), and the Data
Security Council of India (DSCI) have collaborated to address private sector cyber security
needs. However, these processes have not yet aligned with government effortsAutomation and the Job Market
The development of automation enabled by technologies including
robotics and artificial intelligence brings the promise of higher
productivity (and with productivity, economic growth), increased
efficiencies, safety, and convenience. But these technologies also
raise difficult questions about the broader impact of automation on
jobs, skills, wages, and the nature of work itself.
Automation threatens 69% of the jobs in India, while
it’s 77% in China, according to a World Bank research.
• The recent 'Future of Jobs in India' study,
commissioned jointly by FICCI and Nasscom with EY
found that 9% of India's 600 million estimated
workforce would be deployed in new jobs that do not
exist today, while 37% would be in jobs that have
radically changed skill setsWhat should be the Future?
Digital India needs……… All gram panchayats to be connected with optic fibre by March 2019? Indian communications satellites are still operating in the C and Ku band Move to the higher capacity Ka band E ad V Band spectrum assignment
Thank You
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