With the conclusion of the spectrum sale, telecom operators are now gearing up for the launch of the 5G services. The government had said India would be able to roll out services by October. With a major hurdle of acquiring airways out of the way, they are now focusing on the actual part -- investment, Infrastructure, equipment as well as the standards that need alignment with global ones. So how are the telecom firms going about the rollout? We explain the process.
What is the current status of the 5G rollout in India?
Even before the spectrum allocation announcement, India was gearing up for being 5G ready. Last year Airtel partnered with Nokia to conduct 5G trials in the low frequency 700 MHz band in Kolkata. It also conducted the same in Hyderabad. This year in May, Vodafone held trials in the high-frequency MM Wave band to achieve a speed of six Gbps in Pune, while Jio also managed to achieve a download speed of 420 Mbps and an upload speed of 412 Mbps using its own equipment.
What is the infrastructure and investment needed for the 5G rollout?
Telecom firms plan to roll out 5G services initially in a limited number of cities. The current infrastructure may be able to sustain the rollout of services. However, experts say at least 70 per cent of the telecom towers are needed to be fiberized from the current level of 33 per cent to roll out 5G in a way that utilises its full potential.
Fiberization is essential for 5G due to the increasing data consumption and growth in India compared to the 2G and 3G wireless technologies, which work on a shared network and have a limited capacity to handle an increase in load. According to estimates by UBS, telecom operators Airtel, Jio and Vi will need $30.5 billion for investments to increase site footprint and fibre backhaul. While fiberization is a key component for the ultimate success of 5G, deployment and scaling of 5G will require a $30 billion investment by network providers in radio access network, transmission and core networks.
Is India ready on the equipment front?
Telecom firms will have to create a reliable digital infrastructure for 5G and networking equipment including optical fibre and other semi-conductor-based devices will be at the core of it. While India holds a strong presence in manufacturing such equipment and production capacity is being consistently ramp up too, the market is flooded with cheaper imports from China, Indonesia and South Korea. These imports are sabotaging India’s capabilities to utilise and develop its own intellectual property for a self-sustaining digital infrastructure model that can lead to connectivity and growth for at least 20 years.
Are there any technological challenges?
Apart from infrastructure, there are other concerns that need to be addressed for successful implementation such as the conflict between the home-grown 5Gi standard and the global 3GPP standard. 5Gi developed under the collaboration of IIT Madras, IIT Hyderabad, TSDSI, and the Centre of Excellence in Wireless Technology (CEWiT) is an indigenously developed 5G standard for improving coverage in rural and remote areas of India compared to 5G which is a global standard developed by 3GPP, a global body responsible for formulating the specifications for 5G implementation around the world. 5Gi has been approved to be merged with the standards of 5G under a compromised formula by International Telecommunication Union (ITU) in December 2021.
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The major benefit of 5Gi is its use of Low Mobility Large Cell (LMLC) that helps in extending the connectivity and range, making it easier for operators to provide fast mobile connectivity to remote and rural areas without additional investment for installing base stations every few kilometres. Although adopting the 5Gi, which the Department of telecommunications (DoT) is seeking to make as default, as an operating standard sounds cost-effective, the Cellular Operators Association of India (COAI) has its own concerns, mainly over interoperability.
Interoperability would mean harmonisation between the indigenously developed 5Gi and globally adopted 3GPP standards, providing universal coverage and reducing any inequities between the two. The costs saved due to the ease of deployment and coverage of 5Gi may not be enough to offset the increased cost that will be required to maintain the interoperability, especially because it will require making changes in hardware as the existing 5G equipment and phones may not be compatible with the 5Gi bands. Also, operators would face a loss of investment already undertaken to upgrade their network to offer 5G.
Making 5Gi a mandatory standard will cause the industry to incur investment for reversing those upgrades and making their equipment and network 5Gi compatible. Since the current status of deployment of 5Gi as well as its trial by telecom firms is unclear, this could also be a major point of concern leading to a delay in a successful 5G rollout.
Will the launch face any delays?
The 5G auction witnessed optimistic bids and ended on a largely positive note, but a successful rollout may still face hiccups, compromising the early timeline targeted by the industry. Nonetheless, ensuring all the requirements for a successful 5G rollout and building a strong, self-sustaining ecosystem should be prioritised over a hasty launch.
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