5G Sector in India
- The fifth-generation mobile network is known as 5G. Next-generation cellular technology will offer ultra-low latency communication that is quicker and more dependable. According to a government panel analysis, peak network data speeds for 5G are anticipated to be between 2 and 20 Gigabit per second (Gbps). In comparison, 4G connectivity speeds in India only average 6-7 Megabit per second (Mbps), compared to 25 Mbps in developed nations. The Third Generation Partnership Project (3GPP) defines and oversees the standards for the use of 5G. (3GPP).
5G benefits for the communication sector include:
- According to a government-appointed panel’s research, the cumulative economic impact of 5G in India is predicted to reach $1 trillion by 2035.
- In a separate analysis, telecom equipment manufacturer Ericsson predicted that India’s 5G-enabled digitalization revenue potential will exceed $27 billion by 2026.
- The GSMA, a worldwide trade association for the telecom sector, also predicted that by 2025, there will be roughly 70 million 5G connections in India.
- The Internet of Things (IoT) and machine-to-machine communications are two developing technologies that 5G is predicted to be the foundation for.
- It would be able to enable a considerably wider variety of services and applications, such as autonomous cars, telemedicine, and real-time data analytics.
- Implementing sensor-embedded networks that enable real-time information relay across industries including manufacturing, consumer goods, and agriculture will be one of the main applications of 5G.
- By enhancing its intelligence, 5G can also help make transportation infrastructure more effective.
- Vehicle-to-vehicle and vehicle-to-infrastructure communication will be made possible by 5G, paving the way for the development of driverless cars among other things.
- For these use cases, 5G is a desirable technology due to its extremely low latency.
- The amount of time it takes for data to go from its source to its destination is known as latency.
- India’s desire to deploy 5G and play a vital role in its development and growth has been mentioned by the government on numerous occasions. A high-level forum was established in 2016 to advise India on a 5G strategy.
- The potential of this spectrum was recognised in the National Digital Communications Policy of 2018, and TRAI has recommended a reserve price for the auction of 5G spectrum in the 3.3-3.4 GHz and 3.4-3.5 GHz bands.
Economies of scale challenges:
- Allocation of frequencies: Indian operators have much less spectrum than foreign operators. The hefty investment costs that give telecom businesses second thoughts about their ROI.
- Network investment: There are problems with capital augmentation in the Indian telecom industry that need to be fixed.
- Lack of investment capital: A large number of Indian operators are also burdened with debt.
- Telecom companies appear hesitant to take part in the auction, citing the high reserve price of 490 crore per MHz and the inadequate amount of spectrum available.
- Legislative limitations: Faster rounds of new technology introduction bring more complexity because earlier technology investments haven’t yet been recouped.
- Technical Difficulties: It is difficult to create an IT architecture that can be used globally while still allowing for regionally specific technology.
- Lack of government incentives: Given the growing pressure on its revenues, particularly following the COVID-19-induced slowdown, government has little motive to sacrifice income.
- Discouraging Taxes: The current flat rate of 6% of adjusted gross revenue for licence fees and 3% for spectrum usage charges has discouraged telecom companies from making new technological investments.
- Ineffective auction design keeps valuable spectrum unutilized.
- This comprises priceless 5G spectrum in the 700 MHz and 3.5 GHz bands as well as the highly coveted E and B bands.
Steps to Take:
- Digital India must be compatible with 5G technologies.
- Encourage the development and production of 5G technology, goods, and services in India.
- It is necessary to release unused spectrum, at least until it starts to earn sizable profits.
- Provide funding and incentives for local telecom and technology companies to build up their internal capabilities, which will aid in the adoption of 5G technology in the nation.
- Encourage 5G start-ups that allow these manufacturing and design capabilities.
- Encourage the creation of IPR for the aforementioned designs.
- Reward spectrum usage that is effective,
- the modernization of narrow-band networks
- The growth of markets.
- The production of 5G chipsets may necessitate significant investments.
- The right test environments and technological foundations to support and enable the Indian technical ecosystem’s competitive advantage in 5G.
- Accelerated deployment of the next generation of ubiquitous, high-speed internet infrastructure, with 10 Gbps of coverage in metropolitan areas and 1 Gbps in rural areas.
- A unified management strategy will be necessary for smooth mobile networks to provide uniform standards, and coverage, dependability, and scalability must all be optimised.
Conclusion:
- According to the World Economic Forum, there will be a stunning 9.1 billion mobile subscriptions by 2023. Digital India will be sparked by 5G, marking a turning point in the digital transformation. The fifth generation of cellular technology, or 5G, is about to arrive in India. It gives businesses a chance to access international markets, while consumers benefit from the economies of scale. Better service delivery, quicker access to services, and broader adoption of digital services can all be aided by it.
