“KPMG estimates that India Inc. has the potential to unlock $48.69 billion (Rs 3,40,800 crore) through the deployment of 5G over four years and the 5G contribution to annual GDP is likely be in the range of 0.35 - 0.5 per cent,” said the company in its report- titled ‘Imagine a new connected world: Intelligent, Immersive, Inventive. The consulting major expects the airwave to see widespread adoption in India by 2025.
The report launched at India Mobile Congress (IMC) comes at a time when the telecom sector is awaiting the roll out of the latest airwave via auctions but has asked for a more reasonable sale price on the spectrum. Infact, on the first day of the conclave- telecom and IT minister Ravi Shankar Prasad said that the government is undertaking a reform of pricing of spectrum.
The minister’s comments come on the back of operators raising their concerns over the prices of 5G spectrum, amidst turmoil in the industry.
The telecom sector is reeling under a debt of Rs 7 lakh crores and in the last three years many operators have become defunct, some have exited the industry.
KPMG too stressed that the financial burden of the sector should be eased. “With the total levy of between 29% and 32% in the form of GST, licence fee and spectrum usage charge (SUC) on the telecom sector, there is a clear need for levy rationalisation. The Universal Service Obligation Fund (USOF) contribution and SUC could be reduced to three percent and one percent respectively, to make the sector competitive,” it said.
A need for a three year moratorium on spectrum payments to the government with abeyance on interest charge, refund of accumulated unutilised input tax of $4.24 billion are some of the other demands of the debt-laden sector, was also mentioned.
The study highlighted that India Inc.’s stakes are on data analytics and cloud, IoT, blockchain and AI are projected to be strategic investments and robotics and AR\/VR are the future stars. The report notes that companies have started investing in emerging technologies, but work it is yet to be universally adopted.
“KPMG in India analysis 2019 survey indicates that 43% of companies have begun work on emerging technologies but almost 31% are yet to develop a roadmap for digital strategy,” stated the company. The report states that sectors that are likely to be the most disrupted by emerging technologies are retail, then financial services and technology, in that order
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