5G is the next generation of network technology that will revolutionize the way people and machines communicate. But with 5G, many things at the infrastructure level and the telecom ecosystem in India will have to change to support high-bandwidth, low-latency networks. With the 5G spectrum auction so close (scheduled for July 26), TelecomTalk reached out to industry experts and analysts to understand their views on 5G and what India needs to do to ensure the network rollout of the next generation becomes a success.
This is what they said.
Anku Jain, General Manager, MediaTek India
The 5G spectrum auction takes place at a time when sales of 5G smartphones have already passed 51%, surpassing the penetration of 4G smartphones. The demand for high-end gadgets with world-class features, especially in terms of camera, display, memory, battery and gaming capabilities, is driving the growth of 5G smartphones currently.
India is one of the most potential markets for 5G. The young population expects their 5G smartphones to have the best processor technologies that can optimize resources and maximize capabilities to meet their streaming, gaming, collaboration and photography demands, while also being affordable.
MediaTek’s latest range of Dimensity 5G chipsets is designed to make 5G a faster reality in India. Powered by the industry’s most advanced 4nm processors and MediaTek’s exclusive innovations such as MediaTek HyperEngine 5.0 for gaming, the new processors such as the MediaTek Dimensity 9000 and 9000+ will take India’s digital transformation to the next level.
SP Kochhar, Director General, COAI (Cellular Operators Association of India)
A robust telecom infrastructure has helped the country through difficult times over the past two years. The July 26 spectrum auction for the roll-out of 5G services by private telecom operators is a welcome step that will set the stage for the industry to fulfill its long-term dreams as we prepare for the commercial roll-out of 5G. The government’s decision to allocate 5% of the Universal Service Obligation Fund (USO) to encourage design-driven manufacturing under the LAKE scheme is expected to intensify 5G mobile services in the country.
With the expansion of the PLI scheme to bolster 5G and aim to deploy fiber in every village by 2025, the move will promote India as a cost-effective manufacturing hub globally and further boost new investment in the telecom sector. There is a need to implement uniform RoW charges in all states and rationalize regulatory charges such as LF, SUC and USO to ensure a smooth rollout of 5G technology that will unleash a new wave of innovation.
To support India’s digital vision, 5G will be a key component, and with such unprecedented levels of connectivity and 5G internet, India will be able to transform education, healthcare, agriculture and other rural sectors while building future smart cities. – all trademarks of a 5G India. Over the 2023-2040 period, we estimate that 5G technologies will contribute a total of approximately $450 billion to the Indian economy (0.6% of GDP in 2040). 5G is vital, both from a digital connectivity standpoint, and to give a strong boost to the Indian government’s initiatives to digitize the country.
Charu Paliwal, Research Analyst, Counterpoint Research
Expected rollout plans and availability of 5G smartphones:
With 5G, we expect telecom operators to keep their focus on the 3.5 GHz spectrum for network deployment during the first 2-3 years as it is relatively cost effective and has sufficient device availability in the market. Almost every smartphone from the mid-range to the premium segment launched in India in the past two years supports this spectrum band. We expect the launch of 5G smartphones in the budget segment to gain momentum this year.
Expected investments by telcos in addition to buying 5G spectrum:
Important investment areas in addition to spectrum are fiber optic infrastructure and the addition of new mobile towers, including small cells. In addition, investments would be needed in various domains of the ecosystem – be it manufacturing devices, developing India-specific 5G use cases and business applications, establishing an increasing number of edge data centers and, of course, the roll-out of network infrastructure.
Challenges/issues that need attention in the near future for a successful 5G adoption:
There are areas including RAN, core and transmission that need upgrades. Only 34% of the towers in the country are equipped with fiber and this number should increase to about 70% for an efficient rollout of 5G services. Another factor is underdeveloped domestic hardware manufacturing, which also adds to the challenges of 5G rollout. While the government has developed aggressive policies in favor of local production, it will take time to show an impact on the ecosystem.
Other market dynamics, such as the lack of a robust 5G device ecosystem in an industrial environment can hinder adoption. The LTE device ecosystem today is well founded with a wide range of devices available at low cost. But mass deployment of 5G devices can be expensive, as industrial devices may not be readily available on the market in volumes that drive down the price of devices. In addition, it is important to develop use cases focused on India, as 5G technology is not limited to meeting consumer-specific needs.
Sanjay Bakaya, Country Head – India & Regional Vice President – India & South Asia and Future
5G in India will have an impact well beyond the consumer-based mobile broadband market. The impact of 5G will be much deeper as more industrial use cases are implemented. It will boost digital transformation and have a significant impact on all verticals, their business processes and goals. 5G will play a vital role in building a sustainable economic model across all sectors by weaving technological innovations into everyday processes. This will not only change lives in the country but also boost India’s economic growth.
