In the wake of steep competition in the Indian telecom industry and resultant dipping revenues and profit margins, 5G can come as a savior for the bleeding Indian telcos. 5G or fifth generation technology, when deployed and becomes mainstream, has the potential to bring in 21% additional revenues or around $12.9 billion for the Indian telecom operators in the coming days, believes Ericsson.
The Swedish telecom gear maker, while showcasing its latest wares on 5G, said this 21% additional revenues would come from non-telco and non-core businesses for telecom operators. The traditional revenue for telcos come from voice and data services. However, the additional revenue would be from businesses other than these core areas.
“We are seeing another 21% additional revenue for Indian telecom operators by 2026, and that translates to $12.9 billion in value terms” said Nitin Bansal, Managing Director, Ericsson India.
If we look at a break up from where this $12.9 billion would come from, manufacturing would be the biggest contributor, with $2.4 billion followed by energy and utilities with $2.1 billion. The other business verticals with substantial revenue potential include public safety, healthcare, public transport, and media and entertainment.
The telecom gear maker that showcased a host of 4G and 5G products and solutions at its annual technology summit here in Delhi, said Indian operators are expected to launch 5G services on a commercial basis somewhere in 2020.
“That is when we expect 5G would be mainstream in India, though pilots and trials would go on till 2019,” added Bansal.
He said, with 5G in place, data consumption in India would be 11 times more than what it is now. Globally, the same would be around 8 times more.
According to Ericsson’s new economic study of enhanced mobile broadband, evolution to 5G will enable 10 times lower cost per gigabyte than current 4G networks. To help operators capture growth opportunities presented by new 5G use cases, Ericsson has expanded its 5G Core System offering with new capabilities to support 5G NR and also enhanced its Distributed Cloud solution.
“Operators today are looking at ways and means to increase network capacity especially in urban areas. It is here that Ericsson’s Street Macro adds a new layer in the network layer to boost capacity enabling service providers to cater to the growing demands of data users. Our studies in fact indicate that Enhanced mobile broadband (eMBB) will be the first large-scale global 5G use case, driven by a need for more efficient networks and better user experience,” added Bansal.
The company has introduced a new category of radio products called Street Macro; a new site type that addresses the need of operators to grow in cities with limited available radio locations. The company has also launched new radio products that support Massive MIMO technology. These products enable a smooth evolution from 4G to 5G and address the need for increased capacity, while simplifying use for wider adoption.
The announcement came on the sidelines of Ericsson’s annual technology roadshow in India, where the company recreated a “Do Zone” to showcase the highlights from Mobile World Congress 2018. Over 20 state of the art proof points were displayed at the ‘Do Zone’ to give a glimpse of the future that will be enabled by 5G.