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Development of telecommunication area to 5G in 2023 in India

31. 12. 2022 Saturday / By: Robert Denes / Industrial / Exact time: BST / Print this page

F rom connecting people with 5G services to reducing operational costs, the country's revived telecom sector is witnessing a boom in reforms and will attract over Rs 1.5 lakh crore investment in the new year to build networks. Once the poster boy of India's growth story, the telecom sector has ushered in a new chapter in 2022 in a debt-laden segment where many players withered and now rode the wave of reforms and big investments. The Adani group is yet to unveil its full-fledged plan for the telecom business, with Reliance Industries chairman Mukesh Ambani committing to an investment of Rs 2 crore to roll out the 5G network across the country by December 2023.

"It has been an exciting year with the introduction of 5G, a technology that has been awaited for 4-5 years. This is a big step forward. We look forward to a robust introduction of 5G next year, because this year is just the beginning"

We all work on use cases.

We are telling state governments, ministries, startups and innovators to come up with innovative use cases in the Indian context that will unlock businesses and solve some public problems, some challenges," Telecom Minister K Rajaraman told PTI.

The government will continue to take measures to reduce operating costs for telecom operators, resulting in higher profit margins in the sector, which has been burdened by debt for more than a decade.

Reliance Jio has committed Rs 87,946.93 crore for the spectrum to be paid over 20 years, leaving a balance of Rs 1.12 crore. While the company has invested a fraction in building its own 5G core, sources say it will invest the bulk of the Rs 1.12 crore in 5G investments in 2023.

Bharti Airtel is expected to invest Rs 27,000-28,000 crore and state-owned BSNL around Rs 16,000 crore in 2023 to build an indigenously developed 4G network by a consortium led by TCS and C-DoT. Later, the system will be upgraded to 5G.

Together, investments worth over Rs 1.5 crore are expected in the telecom sector.

COAI Director General SP Kochhar said that the structural and procedural reforms in the telecom sector approved by the government last year, such as e-KYC, will eliminate spectrum usage charge (SUC) for spectrum acquired through future auction, 100 percent foreign direct investment. the automatic route along with bank guarantee, adjusted gross receipts (AGR), rationalization of interest rates and penalties and facilitation of right of way (ROW) had a positive impact on the sector in 2022.

According to TR Dua, Director General of the Digital Infrastructure Providers Association, most state governments have followed the reforms led by the Center and come up with telecom infrastructure-friendly policies this year.

Recently, Minister of State for Telecommunications Devusinh Chauhan informed Parliament that telecom operators are deploying an average of 2,500 base stations per week in the country to provide 5G services, with 20,980 mobile base stations installed as of November 26. and Ericsson – ramped up their production in India. The government has also received investment commitments of Rs 4,115 crore from 42 companies selected under the Production Linked Incentive (PLI) scheme to manufacture telecom equipment.

Nokia has announced that it is witnessing the deployment of the world's fastest 5G network in India.

"In 2023, we hope that the government will continue to support the digital ecosystem to really reap the benefits of the socio-economic applications of 5G technology. 2023 is also expected to see a wider deployment of private networks among companies and businesses to increase,” said a Nokia India spokesperson.

Tech Mahindra Manish Vyas, president, communications, media and entertainment business and chief executive officer, network services, said 5G will be used to develop revolutionary applications and innovative use cases in industries such as manufacturing, healthcare, BFSI and autonomous management.

"We see 5G for Enterprise (5G4E) as our next growth strategy, and it's already there We are also conducting several trials with it around the world," he said.

IDEMIA India Vice President Rahul Tandon said that once India rolls out 5G connectivity, there will be many new opportunities that will increase the productivity and security of not only online transactions but also Machine2Machine (M2M) transactions.

While telecom operators are investing billions in building a 5G network, a senior AirtelA official said there are currently no apps that can help companies monetize 5G.

"5G will help to divert traffic from the 4G network. 5G is a very efficient and better technology, but currently applications like video, gaming, etc. work well on 4G. We are yet to see an application that can specifically help in monetizing 5G, the official said.

He also said the company expects growth from customers upgrading their service from 2G to 4G, from prepaid to postpaid, and from postpaid to home broadband, as well as price increases.

Annual rate hikes by telecom operators -- Bharti Airtel, Vodafone Idea and Jio -- have brought the companies' average revenue per user (ARPU) to sustainable levels in the 18-42 percent range in 2022.

In November 2019, Vodafone Idea Ltd. took a leading role in raising the price of mobile services by up to 42 percent. Bharti Airtel and Reliance Jio followed VIL in raising tariffs.

The 2019 tariff increase took place after a gap of about five years. Data prices fell by 95 percent to Rs 11.78/GB in 2017 from Rs 269/GB in 2014.

Bharti Airtel is conducting a pilot project to increase its entry-level mobile plan by around 57 percent. The company has increased the minimum recharge price of the 28-day mobile phone service pack by around 57 percent to Rs 155 in Haryana and Odisha.

The company official said that they will examine the outcome of the duty hike in another six weeks to decide on the duty hike in India.

While VIL was able to sail through 2022, 2023 is likely to be a year of change for the company as the debt-ridden company waits for the government to pick up a stake of around 33 percent under the interest payment scheme. into capital. JM Financial according to its October 2021 note, VIL needs to have an APRU of at least Rs 190-200 crore by March 2023 to survive, but the company is far from the target and is struggling to control subscriber churn.

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