The telecom operators in India are currently bidding on the 5G spectrum. With the 5G spectrum auctions expected to be over soon, telcos will aim to use the purchased spectrum as soon as possible to make a profit. Consumer services with 5G networks may not be such a big push from the telcos at first, but business services will definitely be an area of focus. One thing that could hurt the way telcos expect to monetize 5G is the rising cost of smartphones. Due to the rising costs of components such as chipsets and displays, the end price of smartphones is high. While this will be the first time the telecom operators will get a turnkey market with several million users already owning 5G smartphones before even the networks were launched, it is worth doubting whether the telcos will get their money back. can earn.
Will telecom providers soon be able to earn money back with 5G?
The question is not about the amount of money the telcos invest in the 5G Spectrum Auctions in 2022; it’s about the ROI (Return on Investment) they will see. According to industry experts, chipset costs will not fall anytime soon. Even before the pandemic, there was a small shortage of semiconductors. It deteriorated when the production facilities were closed due to the pandemic.
By the end of Day 3 of the spectrum auction, the bidders had spent nearly Rs 1.5 lakh crore buying ether. These are big investments and the telcos will definitely try to recoup the cost somehow. Jio has bid for most spectrum, and the telco may also aggressively launch 5G services as it did with 4G.
It’s worth watching the movement in the 5G spectrum auction for the telcos. The cost of 5G smartphones will not fall. That could delay the monetization plans of Airtel, Jio and Vi (Vodafone Idea), the three private telecom operators in India. The launch of 5G networks is expected to take place within 2022 itself in the coming months.
