NEW DELHI: IT service provider Tech Mahindra said it will work directly with both telecom operators and enterprises to help establish 5G private networks in the country, calling it a “fast-growing” opportunity for the company. †
“Transporters will continue to play a major role, despite the licensing policy…both the backhaul and the last mile must coexist. As for enterprises that owe the spectrum, this is happening in other parts of the world and we will continue to build solutions with telcos like Airtel and directly with enterprises,” said Manish Vyas, President, Communications, Media and Entertainment Business, and CEO. Network Services, Tech Mahindra, told ET.
Vyas said TechM’s enterprise footprint is growing rapidly globally, providing the company with an opportunity to get involved in their network transformation and automation of factories and infrastructure. “As a design implementation house and managed services house, it’s an opportunity that has only increased,” he added.
The senior executive said 5G will be a “critical” component to India’s next-gen industrialization and contribute to substantial economic development.
The Indian cabinet recently authorized direct allocation of 5G spectrum to companies for private networks, which is seen as a victory for tech companies. However, the assignment will take place after the DoT has conducted a demand assessment.
The company’s 5G strategy revolves around serving telcos, enterprises and building use cases, the CEO said.
“When I say that 5G itself lends itself to greater economic activity, it’s not just the 5G network, but also use cases,” Vyas said.
Tech Mahindra’s 5G solutions revenue grew from $125 million in FY21 to more than $600 million in FY22, a nearly five-fold jump. It has invested more than $300 million in developing its 5G capabilities over the past two years.
“Reviews of 5G grew significantly. There was a lot of growth in many markets and the US and Europe continue to lead for us. We announced several new partnerships,” he said, adding that the telecom business as a whole was also growing on all fronts.
The company is also investing in setting up R&D centers and looking at inorganic routes to increase opportunities in the 5G domain.
Tech Mahindra currently has 11 5G R&D centers worldwide and plans to add several more this year. It recently launched its new 5G lab in the US, as an innovation hub to help customers co-create and co-innovate 5G-based solutions.
“It’s very clear that people are very committed to the ORAN movement, whether it’s 5G for carriers or 5G for enterprises. The role for companies like us integrating, implementing and designing these 5G networks, including ORAN, is well understood by the industry. That’s what we decided to keep investing in… we announced a lab in the US for interoperability and integration,” said Vyas.
He said the promise of ORAN technology is to significantly reduce total cost of ownership. “We’ve seen in parts of the world where implant costs are significantly lower than traditional technology. For the most part, we’ve seen it in greenfield networks and have yet to see it in a brownfield environment.”
The company is engaged with Indian telecom operators on the ORAN front.