Mobile communication in India was primarily voice-based for many years.
Published: 08th March 2019 04:00 AM | Last Updated: 08th March 2019 03:17 AM
The recently concluded annual
Mobile World Congress in Barcelona was abuzz with the emerging technology
called 5G, which is expected to transform the communication landscape the world
over. As with any technology life cycle, we witness hype before reality sets
in. How soon will 5G become a reality and how quickly will India embrace this
technology? Before looking at the possible solutions, let us understand this
emerging technology a bit.
5G stands for the fifth
generation of mobile internet connectivity. 5G promises 10 to 100 times faster
data download and upload speeds compared to 4G. This technology will be
applicable to an ecosystem of infrastructure devices (maybe billions of
devices!) and is not just limited to smartphones. A recent report suggests that
there are 7 billion connected devices globally, mostly comprising mobile
phones, but that would increase 15-fold by 2025. This is because of the
addition of connected home appliances, cars, transportation infrastructure,
etc. 5G is also expected to reduce the latency (time taken for sending data
from one point to another). This can help in innovative real-time applications
across manufacturing, healthcare, education, etc.
The rollout of 5G across the
globe will happen gradually; 5G network suppliers as well as mobile phone
makers are in a hurry to get their products into the market. Telcos across the
globe are trying to outsmart each other. No wonder, a leading telco in the US
recently started a controversial marketing campaign called 5GE or 5G Evolution
(which is advanced 4G and has nothing to do with 5G). It is expected that the
US, Japan, South Korea and the EU would roll out 5G services during the next
couple of years. Any new wireless technology would involve complete infrastructure
deployment as well as the availability of mobile handsets.
Mobile communication in India was
primarily voice-based for many years. However, over the past couple of years, India
has suddenly emerged as a leading market for data consumption. A leading mobile
network provider says that data consumption on mobile networks per user in
India is among the highest in the world. While the increase in mobile usage is
laudable, Indian mobile subscribers are a frustrated lot due to poor voice call
quality, call drops and substandard data rates for browsing. While the benefits
of 5G are too good to ignore and would help India become a ‘technology-first’
nation, the question remains: Will Indian telcos take the 5G plunge?
The biggest challenge is the
availability of 100 per cent backhaul fibre optic network. Reports suggest that
the US and China have over 80 per cent of the backhaul network fiberised, while
in India, it is just about 25 per cent. In addition, what about the ability of
the telcos to acquire equipment, infrastructure and more importantly spectrum?
The total debt in the industry is over Rs 7 lakh crores.
Many telcos have requested for
delayed payment for the spectrum they had acquired, and there are rumours that
some telcos will file for bankruptcy. The situation is similar to the one we
witnessed in the late nineties when the government intervened in bailing out
the telcos that had filed for bankruptcy.
Should India wait for 5G to mature in other countries before bringing it here? Certainly not. The government’s Digital India push would get a major boost through the ultra high speed 5G network. Through Digital India initiatives, the government has already launched close to 70 services (including UMANG, Jan Dhan, eKYC, etc.) With more services on the anvil and more citizens availing the services, a robust 5G-ready infrastructure is the key.
Should India wait for 5G to mature in other countries before bringing it here? Certainly not. The government’s Digital India push would get a major boost through the ultra high speed 5G network. Through Digital India initiatives, the government has already launched close to 70 services (including UMANG, Jan Dhan, eKYC, etc.) With more services on the anvil and more citizens availing the services, a robust 5G-ready infrastructure is the key.
The government has announced
India will be 5G ready by 2020, but that seems far-fetched. It has plans to
auction 5G spectrum. However, reports suggest even at the base price, the
spectrum is 3-4 times more expensive compared to the cost in nations like South
Korea. Considering the tepid response to previous auctions, the government is
on the backfoot. 5G infrastructure would mean huge expenditure from the telcos
for building the telecom backbone and for spectrum. The present price war and
the ultra low cost tariff initiated by Jio has left the incumbent telcos
struggling financially. In fact, a leading telco recently said the artificially
low tariff for Indian subscribers would stop very soon as it is simply unviable
for them.
How can the government help in
bringing 5G? Firstly, the pricing for 5G must be reasonable with relaxed
payment terms. But this would go against the government’s objective of
maximising revenue from spectrum sale. Secondly, private players should be
incentivised and the “Fibre First Initiative” mentioned in the National Digital
Communications Policy (NDCP) 2018 should be aggressively implemented. Thirdly,
the government should aim at reducing the regulatory taxes paid by Indian
telcos, among the highest in the world.
They pay 30-32 per cent of their
revenue as taxes (including spectrum usage charges, licence fees, GST etc.). Also,
the government must push for ‘Make in India’ manufacturing for 5G
infrastructure, equipment and even mobiles. Finally, an ecosystem should be
created for coming up with India-specific applications by involving the right
stakeholders including industry and academia.
Notwithstanding the current
challenges in the telecom industry, India needs to embark on the 5G journey for
the Digital India initiatives to be effective. The government and telcos must
work together in building the right infrastructure that can provide superlative
data speeds and user experience for all of us.
G Krishna Kumar
Columnist and ICT professional based in Bengaluru. Views are personal
Email: krishnak1@outlook.com
Columnist and ICT professional based in Bengaluru. Views are personal
Email: krishnak1@outlook.com