Businesses in India are positive about next-generation technology 5G but the dispute between telco and technology companies over direct spectrum allocation to businesses for setting up their 5G private networks refuses to die.
About 52% of businesses plan to start using 5G services in 2022 or 2023, while 31% expect to use 5G in 2024. 5G adoption in India will be much more diverse than that of 4G, given the wide range of consumer and enterprise use cases that 5G supports.
But these insights emerged at a time when telcos are fighting to gain a bigger foothold from the 5G enterprise. Although the Cabinet has allowed direct allocation to private enterprises, the issue is not over yet and both sides are intensely trying to convince the government to decide in their favor.
Businesses are expected to be the main cash generator for the telecommunications companies – RelianceJioBharti Airtel en Vodafone ideas – It is estimated that it will generate about 40% of the total 5G revenue.
Telco’s demands the decision to allocate direct spectrum to private companies 5G networks will harm their business. While technology companies have held back, saying it is a ‘forward-looking decision’ and will be an additional source of revenue for the government through license fees and administrative fees paid for the spectrum. Businesses have listed certain reasons for upgrading to the fast fifth-generation wireless networks, with the top three service reliability, control and security.
However, if the decision on private networks remains the same, the telecommunications companies could refocus their planned 5G enterprise venture to focus on medium-sized enterprises for new revenue streams with expected competition from large enterprises and technological majors that could enter the fray for private private networks. uses next-generation technology.
Large companies with direct access to 5G airwaves will rely less on telcos to build / manage their captive networks. Business services are estimated to generate as much as 40% of future 5G revenue for telco, a prospect that telco will desperately seek to protect with revenue from 5G that is expected to be driven primarily by B2B, not so much by retail subscribers.
Many say there is enough room in the company’s private network ecosystem for telecommunications operators and technology companies to coexist. 5G implementation in private networks will require specialized and new technologies that will be a green field area for both parties. 5G is a predominantly business-to-business (B2B) technology and will first be used by businesses and enterprises.
Commercial deployment will take at least a few years and is likely to be deployed only in industrial areas, special economic and commercially important zones.
The auction for 5G Spectrum is scheduled for July 26 and services are expected to start later this year.
5G subscriptions in India are expected to account for 40% of mobile subscriptions – 500 million – by the end of 2027. 4G, which predominantly drives connectivity in India, will drop its contribution to 55% in 2027, from 68% currently. It is predicted that 4G subscriptions will decrease annually to an estimated 700 million subscriptions in 2027 as subscribers migrate to 5G.
Finally, when the industry talking about 5G, the state-owned telecommunications player BSNL is struggling to launch its 4G services.
The stalemate between BSNL and TCS continued as the latter sought a price increase to provide networking equipment for as many as 6,000 sites for the deployment of telco’s long-awaited fourth generation or 4G services. However, a limited opening of BSNL’s next generation commercial network by Prime Minister Narendra Modi on 15 August is in the works. Earlier this month, Mumbai-based TCS sought to improve the cost of supplying network equipment in line with the increase in component prices due to supply chain constraints, increased labor wages and continued rupee volatility against the US dollar.
On March 31, BSNL released a purchase order to acquire network equipment for as much as 6,000 sites at a cost of Rs 560 crores, which according to sources is even 56% less than the price point of phase VIII expansion offered to Finnish multinational Nokia offered. in 2018.