COVID-19 pandemic accelerated pace of broadband penetration in India, a Deloitte-CII report

The lockdown period following COVID-19 pandemic accelerated India’s rapid pace of broadband penetration and data consumption, stated a report by Deloitte-Confederation of Indian Industry (CII here on Friday.

The report titled “Broadband for inclusive development — social, economic, and business” highlighted the current state, future growth levels and necessary interventions required by the government and telecom players to boost broadband adoption in the country.

Sathish Gopalaiah, Partner and Telecom Sector Leader Deloitte Touche Tohmatsu India LLP said, “This report briefly highlights the state of broadband in our country, how critical and transformative broadband can be for us, the key challenges holding back its growth potential, and certain key interventions that can be made through government policies, government spending, impetus to R&D and product development, and effective on-ground implementation of large initiatives.”

As per the report, the July-September 2020 quarterly results of a leading telco indicated a 2.1 times growth in fixed broadband connections compared to the January-March 2020 quarter, and a 15 times increase compared to the same quarter last year.

According to it the need for fixed broadband was fuelled by digital services, such as e-commerce, online education, online entertainment and e-payments, seeing a significant jump during the lockdown phase.

“Significant increase in demand for fixed broadband is estimated to continue, as a result of the pandemic, with extension in work-from-home for most corporates and permanent changes in digital behavior of people in the new normal,” the report stated.

It further stated that broadband has the potential to transform social, economic and business growth, it has and will continue to become an increasing part of citizens’ day-to-day life, enabling commerce, education, health care, governance, and other social goods.

It also noted the positive impact of the service in the field of education, healthcare, governance, gross domestic product (GDP) growth and employment growth.

“The broadband penetration (/topic/broadband-penetration) has positive correlation with GDP growth and employment. According to a World Bank report, a 10 per cent increase in broadband penetration levels in developing countries is estimated to lead to 1.38 per cent GDP growth,” it stated.

Further, internet connectivity can reduce the cost of learning, increase digital literacy, and also provide easy access to education, especially to those in rural areas, through open online courses and digital modes.

In the healthcare and governance sector, it can help in online consultations, diagnoses, maintaining patient data and faster, cheaper and transparent government program delivery with a wider reach.
Complete report , Broadband for inclusive development-social, economic and business