07 Jan INDIA’S 5G LEAP
India’s telecom sector which has revolutionised the digital space and facilities services- LED growth and quality of life has been estimated to be one of the top performa globally. The 5G network will shape the fourth industrial revolution, quality of service delivery, innovation etc by facilitating smart and developing society.
Commercial 5G Network
- Commercial 5G networks begin to be deployed in 2020 and are expected to reach 12% of world mobile connection and generate revenues Upto 1.3 trillion dollars by 2025 for operators.
- The technology that 5G uses will improve data transfer speed at unexpected higher levels almost hundred times more and reduce latency Times helping mission critical services.
Potential of 5G
- 5G has the potential to provide a wide range of benefits to the Indian economy as it will provide a new dimension to connect an autonomous system through to enhance artificial intelligence.
- Its use is a chance for policymakers to educate and empower citizens’ businesses and transform existing cities into smart cities.
- 5G will enhance the IOT, smart agriculture, energy monitoring, smart grid, tele-health industrial automation, remote patient monitoring etc.
- It will advance digital regulation through a more data-intensive digital economy
- It is imperative to undertake an independent economy assessment for commercial violation for 5G deployment in India.
- India’s telecom sector has also been in doldrums for the last few years.
- The Supreme court ruling on dues being shot by the department of telecommunication has exacerbated the financial condition of telecom companies.
- The number of telecom operators have reduced.
- In this scenario the huge investment required for 5G may add to the burden of limited operators.
- The trial run of 5G in developed countries such as Japan and the US revealed that the investment is very high.
- The big telecom package along with the reforms announced by the government will create an enabling environment for investment in the sector.
- Steps such as moratorium on dues, redefining adjusted gross revenues, and reducing spectrum charge will help the telecom companies.
- FDI in the telecom sector under the automatic route along with this policy reforms augurs well for the sector to attract investment.
- The immediate priority for India will be in-
- Identify users and population to be covered.
- Analysis of the existing network operators
- Identification of cities for the 5G roll out.
- Working out an investment model and pricing based on externalities factors and usage of various sectors.
- The deployment of 5G in India needs to be carefully planned after a cost benefit analysis by an independent expert which will create a level playing field.
- Focus on companies having experience of ensuring telecom networks to remote areas and the potential to provide affordable coverage.
- Sharing of available spectrum to maximise it efficiently used especially in rural areas, and spectrum allocation procedure that favour investment need to be considered.
- As the deployment is expensive both the central and state governments may concern measures which attract investment through PPP and facility investment funds on a nominal interest basis.