India pivotal in lowering 5G FWA device cost for global markets: Qualcomm executive

Qualcomm

American semiconductor major Qualcomm is upbeat on India as rapid adoption of Fixed Wireless Access has offered it the economies of scale to drive down the cost of FWA broadband devices for global markets.

The company, which claims to have enabled 80 percent of the 5G FWA connections in India, intends to collaborate with more Original Design Manufacturers (ODMs) to deepen the FWA device manufacturing in India, supporting domestic demand and riding on export opportunities.

“FWA is a significant deployment, and the market is growing rapidly, becoming a major focus for Qualcomm. Many of the end-products we ship are manufactured locally in India by our partners, resulting in cost structures coming down very quickly,” said Rahul Patel, group general manager of connectivity, broadband and networking at Qualcomm Technologies, in an interaction with Moneycontrol.

Patel highlighted India’s importance to Qualcomm both as an R&D hub and as a key marketplace, thanks to the rapid uptake of 5G-enabled FWA broadband. “To make the product a profitable business proposition for OEMs, device makers, and operators, given India’s price-sensitive market, cost-effectiveness is critical, and India plays a pivotal role in this,” he said.

In several global markets where India-like 5G FWA services are being implemented are also gaining from the slump in the cost of devices. “Every market is different, with unique requirements, but India’s cost leadership benefits these markets as well,” Patel said.

Leading telecom operators Reliance Jio and Bharti Airtel offer the 5G FWA services. Qualcomm is collaborating with both of them on these initiatives.

Jio is the fastest-growing 5G Fixed Wireless Access provider globally with its Jio Air Fiber offers tripling the user base in the second quarter of the fiscal year. Airtel, too, is making efforts and will launch its standalone 5G network to push the FWA services further. Patel affirmed that the company plans to work with all telecom operators offering 5G FWA services but declined to comment on discussions with Vodafone Idea, which plans to launch the FWA services after rolling out its 5G network across 17 priority circles.

India’s FWA subscriber base is expected to reach 5 million by the end of 2024. While Jio Air Fiber services had added more than 2.8 million users as of September, Airtel refuses to share the data. An FWA broadband subscriber in India consumes about 500 gigabytes (GB) of data per month. India is projected to become the world’s largest market for 5G FWA by 2027 when, with more than 30 million users, it will outgrow an anticipated 25-million-strong US market. The US is the current market leader with 15 million users.

The growing adoption of FWA services is slowing the uptake of Fiber-to-the-Home (FTTH) or wired broadband services in the country. “FWA is significantly outpacing the FTTH growth due to lower deployment costs and faster time to market,” he said.

In India, the US chip maker partners with domestic manufacturers like HFCL and VVDN to produce fixed wireless and Wi-Fi access points. “Many companies are collaborating with Qualcomm, and more can join, if needed. The telecom PLI (the government's production-linked incentive system) scheme is a step in the right direction to support the growth of India’s telecom manufacturing ecosystem. For example, VVDN serves customers across Europe and North America,” Patel noted.

It would take a few more years for India to become globally competitive and be an integral part of the global supply chain. “China's supply chain is still far superior but, with India’s push into semiconductor manufacturing, there’s no reason it can’t achieve the same for telecom,” Patel said.

On the ongoing 6GHz spectrum debate in India, Patel expressed Qualcomm's belief that the spectrum will likely be divided, with a portion licensed for telecom services and the rest unlicensed for technologies like Wi-Fi 7. “It’s still a debate within the government. We remain ambivalent about where we would favour.”

Telecom operators are lobbying to ensure the 6GHz band remains licensed for cellular connectivity, citing concerns that free Wi-Fi usage in this band could erode their revenue. The 6GHz spectrum, spanning 5925-7125MHz, is highly sought after due to its ability to provide higher bandwidth for 5G and Wi-Fi services.

The Indian Space Research Organisation (Isro) too raised concerns about potential interference with satellite operations if the band is used for cellular connectivity.