India’s GDP can rise by $1-tn |
Four of five Indians could afford internet if data costs fell by 66%, according to a Facebook-commissioned report on internet access. But Indian telecom operators already run data services at a 11% loss, making cost-cutting difficult.The statistics mean that a data plan, currently priced at Rs 100 should not cost more than Rs 34, if India has to make the internet affordable for 80% of its population.But the adverse economics imply that this cannot happen without intervention from the government —- whose Rs 20,000-crore ($2.9 billion) plan to connect each of India’s 250,000 panchayats (a village administrative unit) with broadband by 2018 -- is three years behind schedule.The internet reached 29% of Indians —- 354 million users in September 2015. It could rise to 39%, or 462 million users, by June 2016. But if it were to reach 100%, India’s GDP could be increased by an extra $1 trillion by 2020. India’s GDP crossed the $2-trillion mark for the first time in 2014, according to World Bank data.To optimise data costs, the report considered 500 MB data plans, classifying them “affordable” if each cost less than 5% of a person’s monthly income.The report, titled “Connecting the world: Ten mechanisms for global inclusion”, is based on a study done by PricewaterhouseCoopers for Facebook.
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