MC Interview | Network expansion by Vodafone Idea, other telcos to revive growth for us: Nokia India head

I believe so, as the rollout is underway. However, it will depend on several factors, such as how mobile traffic evolves, the success of Fixed Wireless Access (FAA), and potential new use cases that may emerge in the next two or three quarters. If demand increases as a result, then the rollout will proceed accordingly.

The network rollout has begun with Vodafone Idea, following our recent agreement. Additionally, all three operators are expanding their 4G and 5G networks simultaneously. We are already engaged in this continuous process, and the current developments will further enhance our expansion efforts.

Is there a comfort level with Vodafone Idea after securing a new network deal?

We have started the rollout. It will continue for the coming many quarters, and we are having discussions with them about their priorities regarding where they want to have the 4G expansion and where they want to have a 5G rollout. You will see the rollout picking up soon. So, to answer your question, it’s been good, and we are working on the plan with them.

Is the expansion by the other two telcos focused on rural markets?

This is an ongoing process. Network expansion is always needed as data traffic continues to rise. Currently, nearly 90 percent of the smartphones being shipped are 5G-enabled, further contributing to this increase in traffic. The average data consumption per user has reached 30 GB per month and is projected to grow to 50 GB in the coming years.

Moreover, approximately 5-6 percent of the population is still out of the 5G coverage, which means telecommunication companies will aim to reach out to these areas as well. Expansion is also expected in rural regions.

Additionally, there is a growing interest in fixed wireless access (FWA). Telecom companies have begun offering 5G-based FWA broadband services to their customers. The FWA market has the potential to expand to 30 million users rapidly, necessitating further network development.

Despite having its own factory in Chennai, Nokia roped in Dixon to make some product lines at its facility. Is there a change in the 'Make in India' strategy?

We consistently implement both strategies at once. Our contract manufacturing is spread across the globe, and our factory in Chennai is primarily focused on mobile networks. We were the first to manufacture 3G, 4G, and 5G technology in India. Our strategy is to adapt to the domestic requirements. Depending on these needs, 10-40 percent of our exports come from the Chennai factory.

Are you looking to expand manufacturing in India by introducing more product lines, especially with the country’s emphasis on telecom manufacturing?

We were involved in PLI 1.0 and have continued with PLI 2.0. Our factory has significant production capacity, and we actively participate in government schemes and the Make-in-India initiative. We recently added a fixed-line product portfolio and continually introduced new generations of products. The communications minister recently visited our factory for the launch of a new product variant. As per the market's demands, we regularly add new modules.

Is Nokia talking to other industries to grow its business beyond telecom operator?

There's a discussion about what new applications will be. These might come in defence, railways, manufacturing, mining, and other private wireless networks. So, we are working with the industry.

What sort of work Nokia is doing in the 6G space in India?

We have established our 6G lab in Bangalore and are collaborating with the academia to develop various use cases. Our teams also work with standard bodies to ensure the standards align with the Indian requirements. There is significant involvement in the efforts to prepare for 6G readiness.

Nokia contributes to the 6G ecosystem by exploring how we can support it with current technologies. To enhance network productivity, we focus on AI and machine learning and sensing-based applications.

What are the other areas where Nokia is working with Indian telcos?

We are now talking to telcos about automating networks using AI and ML to improve network performance and KPIs. Second, we are working with the telcos to secure networks in the face of a rise in cyberattacks. Using AI and ML, you can predict this kind of abnormal behaviour and pre-empt possible attacks well in advance.

We are also working with telcos on energy-efficient solutions, where software can help save energy. This not only helps save on our opex but also helps telcos achieve their sustainability goals.

How is non-telco business doing in India?

Nokia has three business units. The largest is mobile networks, while the Network Infrastructure (NI) unit hosts our optical, IP, and fixed network equipment. The third unit focuses on software development. There is constant growth in our NI business, which is seeing many requirements from the enterprise sector.

We also see a lot of interest in private wireless networks from industries like mining, industry 4.0, and the MSME sector. This has the potential to grow our enterprise business further. I see this growing in the next two or three quarters.

How do you see growth for Nokia’s fixed-line broadband business with FWA coming in? Will it take a hit?

From an end-consumer perspective, broadband is simply broadband, whether from fixed connections or Fixed Wireless Access (FWA). The potential is immense in India, with over 200 million households that need to be connected. There will undoubtedly be growth opportunities in every segment until we reach that target of 200 million. Both FWA and fixed broadband will continue to expand. Our primary focus is to ensure that every household has access to broadband, whether through FWA or a fixed point. Ultimately, as an industry, we share a common goal.

Will FWA grow faster in India than fixed-line broadband (FTTH)?

FWA has just started commercially as a service. We saw some traction in the last one or two quarters. Let's see how the growth happens. There are different projections, but I would say that it will not impact the fixed broadband, which will keep growing at its own pace. In fact, FWA is going to complement fixed broadband (FTTH).

What is causing the delay in the emergence of 5G user cases which could help Indian telcos?

Tariffs are one way of monetising and will help the industry. Data consumption is also increasing, reaching 30 GB per user, and there is already improvement in that direction. 5G use cases for private wireless networks, manufacturing, mining, agriculture, and healthcare are maturing. This technology will further help telcos monetise. I think we are going in the right direction.

Has Nokia India's restructuring been completed in alignment with global changes?

India is a key market for us. We have approximately 17,000 employees in the country, with around 7,000 to 8,000 working in research and development (R&D). Our manufacturing facility is located in Chennai, where we recently launched one of the world's largest R&D labs for fixed networks. Additionally, we operate global delivery centers and have return and repair centers here. With such a substantial workforce and significant activities taking place, India plays a vital role for Nokia.