Delay in policy to incur loss: ICRIER

NEW DELHI, INDIA: The Internet and Mobile Association of India (IAMAI) and the Council for Research on International Economic Relations (ICRIER) unveiled a study, 'India: The Impact of Internet in New Delhi today'.

The report assesses the growth and challenges in the country’s broadband and Internet landscape.

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The report finds that Internet and broadband are catalyst in a country’s growth. It also presents the sordid state of Internet penetration as compared to mobile telephony. India gets only 0.2 million Internet connections a month, the report said.

Parathasarathi Shome, director and CEO, ICRIER said that the study highlights the impact of recent financial commotion on Internet and broadband. “Innovation and Internet will have crucial ramifications on India’s growth," he said.

Shome also said that rigorous competition amongst operators in every service area has led to affordable services for consumers. The study stresses on linear growth of Internet. Ten per cent of Internet subscribers lead to 1.08 per cent rise in GDP, adding a potential of $17 billion, it said.

ICRIER recommends that new broadband networks be established to connect schools, government agencies and hospitals, and especially rural telemedicine centres. The council also believes that roll-out of standard tariff package at reasonable price would boost the existing demand for Internet and broadband services.

The study also indicates that the national broadband plan 2004 has resulted in India’s GDP loss of around $ 100 billion in the interim.

Further delay may lead to staggering losses, the report notes.