Home » Investment » 5G services to be rolled out by 2020; $70 billion investment seen

5G services to be rolled out by 2020; $70 billion investment seen

China’s Guangzhou Baiyun airport enables 5G network, becoming the first 5G-covered airport

5G is expected to add revenue streams for telecom operators as they go beyond just connectivity and infrastructure providers.

The Telecom Regulatory Authority of India (TRAI) on Friday said that 5G network is expected to be deployed in India along with the rest of the world by 2020.

In a white paper titled Enabling 5G in India, the telecom regulator said that the technology will “make it possible to use 5G for healthcare (telesurgery), autonomous vehicles, automated manufacturing etc,” and would have the potential to work catalyst to the higher overall economic growth of India.

However, to implement 5G networks, the white paper said that India would need an additional investment of $60-70 billion.

The areas where investment would be expected include network densification, fiber for backhaul, layer upgrades, spectrum access and microwave backhaul, the white paper said.

The technology is also expected to add revenue streams for telecom operators as they go beyond just connectivity and infrastructure providers to become service enablers and service creators.

5G network rollout will be the next big opportunity for telecom players that are bleeding due to the tariff war triggered by Reliance Jio.

While Vodafone Idea’s net loss widened to Rs 5,005 crore in the quarter ended December 31, 2018, from Rs 4,974 crore in the preceding quarter, Airtel posted a decline of 72% in profit to Rs 86 crore for the same quarter from Rs 306 crore a year earlier.

According to the data by Ericsson, 5G enabled ‘digitalization revenue’ potential in India will be over $27 billion by 2026. Moreover, the cumulative economic impact might be worth $1 trillion by 2035, as per the High-Level Forum report, said TRAI.

3.5 GHz spectrum band is expected to be the first band globally for deployment of 5G. “Department of Telecom is yet to auction spectrum in the 3300-3600 MHz bands. Therefore, the telecom service providers are likely to incur initially an additional investment while launching 5G services on account of spectrum cost,” TRAI said.

The spectrum availability is among the most important issues, hence for full implementation of the 5G network, it is crucial that enough spectrum is made available in appropriate frequency bands.

“All the government agencies in India are assigned spectrum administratively. Spectrum audit will help in identification of unutilized or inefficiently utilized spectrum. After the identification, Licensed Shared Access (LSA) can be used for optimal utilization of spectrum,” the regulator said.

LSA is a concept to dynamically share a spectrum band, whenever and wherever it is unused by the incumbent users.

[“source=financialexpress”]

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