5G
While many businesses have been hurt by the fallout from COVID-19 pandemic, the telecom industry has helped keep the world’s economic engine ticking.
In the ‘new normal’ that the COVID-19 pandemic is shaping, businesses across the world are in the middle of a major digital transformation, and connectivity has become critical in terms of providing collaboration opportunities while boosting organisational resilience. The future value of telecom, beyond being an enabler of connectivity, lies in providing value services and customised experiences.
5G technology will usher in a much greater revolution than itself. At the base level, it will significantly increase the capacity and reach of existing mobile networks through greater data throughput and ultra low latency. In a larger sense, 5G will become the backbone of many fourth industrial revolution (IR4) technologies like Artificial intelligence, augmented reality/virtual reality, drones, internet of things, telemedicine, and autonomous vehicles. Many kinds of devices, billions in number, will be connected to each other through 5G and offer the kind of capabilities and user experience never seen before. Our businesses and lives will change forever.
In tandem with the onset of 5G technologies, the size of the telecom equipment sector is expected to have grown to US$26.38 billion by 2020, bolstered in part by the growth of internet subscribers in the country to 829 million by 2021. The overall internet traffic could grow four-fold by 2021, at a 30% CAGR. The MobileValue-Added Services (MVAS) industry is projected to grow to US$23.8 Billion by the end of 2020 at a CAGR of 18.3%.5 In addition, the National Digital Communications Policy, 2018 envisages attracting investments worth US$100 billion in the telecommunications sector by 2022.
In the ‘new normal’ that the COVID-19 pandemic is shaping, businesses across the world are in the middle of a major digital transformation, and connectivity has become critical in terms of providing collaboration opportunities while boosting organisational resilience. The future value of telecom, beyond being an enabler of connectivity, lies in providing value services and customised experiences.
5G technology will usher in a much greater revolution than itself. At the base level, it will significantly increase the capacity and reach of existing mobile networks through greater data throughput and ultra low latency. In a larger sense, 5G will become the backbone of many fourth industrial revolution (IR4) technologies like Artificial intelligence, augmented reality/virtual reality, drones, internet of things, telemedicine, and autonomous vehicles. Many kinds of devices, billions in number, will be connected to each other through 5G and offer the kind of capabilities and user experience never seen before. Our businesses and lives will change forever.
In tandem with the onset of 5G technologies, the size of the telecom equipment sector is expected to have grown to US$26.38 billion by 2020, bolstered in part by the growth of internet subscribers in the country to 829 million by 2021. The overall internet traffic could grow four-fold by 2021, at a 30% CAGR. The MobileValue-Added Services (MVAS) industry is projected to grow to US$23.8 Billion by the end of 2020 at a CAGR of 18.3%.5 In addition, the National Digital Communications Policy, 2018 envisages attracting investments worth US$100 billion in the telecommunications sector by 2022.
India's 5G moment
India has everything in its favour to be a 5G leader in the world.
1) Solid local manufacturing players for 5G stack right from the software, hardware, optical, semiconductors & chips to large scale network integration capabilities.
2) A buoyant startup ecosystem comprising enterprising and innovative fabless and chip design startups.
3) A global talent pool that has churned out some life-transforming applications across sectors.
4) No weight of legacy systems so the country can leapfrog directly to the latest edge networks.
In the recent parliamentary panel, headed by Lok Sabha MP Shashi Tharoor, it was highlighted that there would be a delay in the launch of 5G technology. As per the panel report tabled in the Parliament, the government expects 5G services to roll out by early 2022 after another spectrum auction that is planned to be held after six months.The Standing Committee on Information Technology pulled up the Department of Telecommunications (DoT) for the delay in the launch of 5G services when several countries have commercially rolled out the next-generation technology.
1) Solid local manufacturing players for 5G stack right from the software, hardware, optical, semiconductors & chips to large scale network integration capabilities.
2) A buoyant startup ecosystem comprising enterprising and innovative fabless and chip design startups.
3) A global talent pool that has churned out some life-transforming applications across sectors.
4) No weight of legacy systems so the country can leapfrog directly to the latest edge networks.
In the recent parliamentary panel, headed by Lok Sabha MP Shashi Tharoor, it was highlighted that there would be a delay in the launch of 5G technology. As per the panel report tabled in the Parliament, the government expects 5G services to roll out by early 2022 after another spectrum auction that is planned to be held after six months.The Standing Committee on Information Technology pulled up the Department of Telecommunications (DoT) for the delay in the launch of 5G services when several countries have commercially rolled out the next-generation technology.
Spectrum Allocation Process
Spectrum is allocated in India based on the National Frequency Allocation Plan, which itself is based on the international frequency table issued by the International Telecommunications Union. A wing of the DoT, the Standing Advisory Committee on Frequency Allocation (“SACFA”), gives approval for radio frequency (spectrum) used by TSPs. In addition to obtaining a telecom license, a no objection certification from SACFA is required to begin rolling out services. The certificate is granted on the basis of a detailed technical evaluation including field studies to determine possible aviation hazards and interference ( Electro Magnetic Interference (“EMI”)/Electro Magnetic Compatibility (“EMC”)) to existing and proposed networks.
In order to ensure optimal deployment of 5G, adequate spectrum availability is imperative. The DoT had constituted a High Level Forum (“HLF”) in 2017 to make recommendations to steer India towards deployment of 5G networks.
The Department of Telecommunications (DoT) has allotted 5G trial spectrum in the 700 Mhz, 3.5 Ghz and 26 Ghz bands, paving the way for Reliance Jio, Bharti Airtel NSE 2.99 % and Vodafone Idea (Vi) to partner with non-Chinese network vendors and develop India-relevant use cases on the next-gen fast wireless broadband technology.
In order to ensure optimal deployment of 5G, adequate spectrum availability is imperative. The DoT had constituted a High Level Forum (“HLF”) in 2017 to make recommendations to steer India towards deployment of 5G networks.
The Department of Telecommunications (DoT) has allotted 5G trial spectrum in the 700 Mhz, 3.5 Ghz and 26 Ghz bands, paving the way for Reliance Jio, Bharti Airtel NSE 2.99 % and Vodafone Idea (Vi) to partner with non-Chinese network vendors and develop India-relevant use cases on the next-gen fast wireless broadband technology.
5G Investment costs
Transitioning from 4G to 5G will involve two major costs:
1) purchasing license for new frequencies
2) building new 5G infrastructure.
The overall costs are expected to be in trillions of dollars worldwide. Given the huge up-front costs, governments and mobile operators together have to develop various investment strategies and identify various funding sources for long-term investments, including private equity, sovereign funds, and infrastructure investment funds.
Fortunately, 5G enables much greater device density or significantly more connections within a coverage area. As indicated by Randall Stephenson, the CEO of AT&T, at CEO Speaker Series of Council on Foreign Relations, “4G networks, in a square mile you can connect thousands of devices. 5G, millions of devices per square mile, much lower power, much lower compute requirement.” So, these costs will be divided among a much greater number of users and devices.
In India, like in most large economies, with the exception of China, the mobile network is built and operated by private companies. According to UBS, the cost for mobile operators to rollout 5G in India would be as high as US$30.5 billion.
1) purchasing license for new frequencies
2) building new 5G infrastructure.
The overall costs are expected to be in trillions of dollars worldwide. Given the huge up-front costs, governments and mobile operators together have to develop various investment strategies and identify various funding sources for long-term investments, including private equity, sovereign funds, and infrastructure investment funds.
Fortunately, 5G enables much greater device density or significantly more connections within a coverage area. As indicated by Randall Stephenson, the CEO of AT&T, at CEO Speaker Series of Council on Foreign Relations, “4G networks, in a square mile you can connect thousands of devices. 5G, millions of devices per square mile, much lower power, much lower compute requirement.” So, these costs will be divided among a much greater number of users and devices.
In India, like in most large economies, with the exception of China, the mobile network is built and operated by private companies. According to UBS, the cost for mobile operators to rollout 5G in India would be as high as US$30.5 billion.
5G Investments ought to be ahead of the curve
The deployment of 5G will disrupt our day-to-day lives and transform sectors with an array of applications and use-cases. Sectors such as manufacturing, energy and utilities, smart cities, public safety, and transport, will be the focus sectors during the early stages of 5G adoption in India.
Enhancing the 5G infrastructure should be of national priority and the nation needs to be ready with a robust, scalable, and intelligent infrastructure that is capable of handling massive traffic growth.
The push for Digital, arising from the pandemic, has increased the count of critical use cases that require ultra-low latencies such as remote medical procedure, contact-less sales or operations, or mobile banking and use cases that require high bandwidth availability such as e-classrooms, remote working, or telemedicine, all of which exchange high amounts of video and audio bytes.
Enhancing the 5G infrastructure should be of national priority and the nation needs to be ready with a robust, scalable, and intelligent infrastructure that is capable of handling massive traffic growth.
The push for Digital, arising from the pandemic, has increased the count of critical use cases that require ultra-low latencies such as remote medical procedure, contact-less sales or operations, or mobile banking and use cases that require high bandwidth availability such as e-classrooms, remote working, or telemedicine, all of which exchange high amounts of video and audio bytes.
Section -6
India remains a complex market. It is best to view India not as a single market, but as a series of interconnected regional markets where the regulatory and investment climate changes from one state to another.
Many states have created investment cells to attract business and have framed policies around them but the lack of coherence between the launch of new policy initiatives and policy stewardship leaves a lot to be desired. While most of the state civil servants acknowledge that they have to be innovative in their approach, there is a lack of clarity over what this means in practice. The ensuing implementation of reform policies is therefore likely to be heavily shaped by the culture. It has been the case that few states in India, receive the new policy ideas like Smart City Mission and Ayushman Bharat very attractive and scalable yet difficult to implement due to logistical and legacy issues.
To correct such perceptual anomalies and resistance, policy discussion needs to be tailored to the culture and existing economic opportunity present in the state.
Many states have created investment cells to attract business and have framed policies around them but the lack of coherence between the launch of new policy initiatives and policy stewardship leaves a lot to be desired. While most of the state civil servants acknowledge that they have to be innovative in their approach, there is a lack of clarity over what this means in practice. The ensuing implementation of reform policies is therefore likely to be heavily shaped by the culture. It has been the case that few states in India, receive the new policy ideas like Smart City Mission and Ayushman Bharat very attractive and scalable yet difficult to implement due to logistical and legacy issues.
To correct such perceptual anomalies and resistance, policy discussion needs to be tailored to the culture and existing economic opportunity present in the state.
Section -7
Many companies have attained stepladder growth by identifying the winds of change in policies, which sometimes open up new business models. Those companies are also able set the agenda for future industry reforms through sustained dialogues.
Policy agenda might be construed as a specific policy ask, but this is not always the case. Moreover, a good policy agenda is accomplished only after several revisions, lengthy discussions, and healthy debate. Therefore, in the best interest of industry, leading companies deliberate, discuss and voice their concerns to the policy makers and parliamentarians.
Given the potential for a seismic shift in our nation’s political and regulatory landscape, we believe; these are times when close attention should be paid to regulatory developments. In times to come, when regulatory supervision is only going to increase, more proactive companies would continue to bear the fruit of favourable and accommodating rules.
Policy agenda might be construed as a specific policy ask, but this is not always the case. Moreover, a good policy agenda is accomplished only after several revisions, lengthy discussions, and healthy debate. Therefore, in the best interest of industry, leading companies deliberate, discuss and voice their concerns to the policy makers and parliamentarians.
Given the potential for a seismic shift in our nation’s political and regulatory landscape, we believe; these are times when close attention should be paid to regulatory developments. In times to come, when regulatory supervision is only going to increase, more proactive companies would continue to bear the fruit of favourable and accommodating rules.
Section -8
The ripple effects of a tumultuous 2020 are likely to be even more enduring and impactful than the forces that initially triggered them. In the aftermath of Covid the government is determined to build the economy through incentives like PLI schemes to boost domestic manufacturing, amending FDI regulations, setting aside startup funds, accelerating digital transformation, building infrastructure and going ahead with its ambitious disinvestment and asset monetization plans.
All of this would entail administrations pulling regulatory and legislative levers to implement its priorities. We are here to help your business along with implications for how to respond to shifts. Numerous companies and hyper growth startups have been a beneficiary of our advocacies and interventions.
All of this would entail administrations pulling regulatory and legislative levers to implement its priorities. We are here to help your business along with implications for how to respond to shifts. Numerous companies and hyper growth startups have been a beneficiary of our advocacies and interventions.
Section - 9
We have reimagined the ways how the process of new age policy making would be.
Over the last decade, the government has taken a more professional approach to policy making.There has been a movement away from policy advice by generalists to one informed by concepts of risk, management, and delivery of services.
Our approach to policy advisory incorporates the perspectives of ministers as well as civil servants, since policy is the responsibility of both parties, and a product of their joint efforts. Bureaucrats, members of standing committees, joint parliamentary committees and opinion leaders can be persuaded to take a more proactive and participatory role in the emerging grey areas in policy dialogues.
Over the last decade, the government has taken a more professional approach to policy making.There has been a movement away from policy advice by generalists to one informed by concepts of risk, management, and delivery of services.
Our approach to policy advisory incorporates the perspectives of ministers as well as civil servants, since policy is the responsibility of both parties, and a product of their joint efforts. Bureaucrats, members of standing committees, joint parliamentary committees and opinion leaders can be persuaded to take a more proactive and participatory role in the emerging grey areas in policy dialogues.
Section -10
India remains a complex market. It is best to view India not as a single market, but as a series of interconnected regional markets where the regulatory and investment climate changes from one state to another.
Many states have created investment cells to attract business and have framed policies around them but the lack of coherence between the launch of new policy initiatives and policy stewardship leaves a lot to be desired. While most of the state civil servants acknowledge that they have to be innovative in their approach, there is a lack of clarity over what this means in practice. The ensuing implementation of reform policies is therefore likely to be heavily shaped by the culture. It has been the case that few states in India, receive the new policy ideas like Smart City Mission and Ayushman Bharat very attractive and scalable yet difficult to implement due to logistical and legacy issues.
To correct such perceptual anomalies and resistance, policy discussion needs to be tailored to the culture and existing economic opportunity present in the state.
Many states have created investment cells to attract business and have framed policies around them but the lack of coherence between the launch of new policy initiatives and policy stewardship leaves a lot to be desired. While most of the state civil servants acknowledge that they have to be innovative in their approach, there is a lack of clarity over what this means in practice. The ensuing implementation of reform policies is therefore likely to be heavily shaped by the culture. It has been the case that few states in India, receive the new policy ideas like Smart City Mission and Ayushman Bharat very attractive and scalable yet difficult to implement due to logistical and legacy issues.
To correct such perceptual anomalies and resistance, policy discussion needs to be tailored to the culture and existing economic opportunity present in the state.
