Is India Ready For 5G

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Is India Ready For 5G?

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 5G services are anticipated to create an economic impact of USD 1 trillion in India by


2035.
 5G use cases would have major application for initiatives like Smart Cities and pave the
way for more widespread IoT application
 Telecom operators need cloud infrastructure, distributed network architecture, and an agile
operating model to successfully operate a 5G network.
 Are the overstretched service providers, with huge debts, declining ARPUs, an abysmal
return on capital, delayed payments to DoT, crashing rupee, rising diesel prices, cut-throat
competition in a position to make huge investments in spectrum, license fees, universal
service fees, infrastructure, and equipment? Will the banks extend the credit required?
 900 million plus telecom customers in India
 4G represented just 9% of total connections in India at the end of 2016
 The size of the Indian market and the rapid adoption of smartphones means that by 2025 it
will have cemented its place as the second largest smartphone market, with an installed
base of almost 1 billion devices
 At present the whole world is using 4G cellular communication technology, and a good
number of users are still using 2G & 3G services.
 Now, the world is looking towards implementing 5th generation cellular communication
technology, which will have approximately 10 to 20 times faster internet speeds than the
present 4G technology. And it will also have low latency, which means if a sender sends
message, receiver will receive it in less than a millisecond. At present with 4G, it takes 30-
70 milliseconds for the transmission from sender to receiver. 5G has lot of benefits… for
example with such faster internet speeds and low latency, doctors can remotely perform
surgeries, and also helps in developing advanced applications in various sectors.
 US, China, Japan & South Korea are already testing 5G services in their countries and
especially US & China are in a race to become the first country in fully implementing 5G
services.
 India is also planning to roll out 5G services by 2020.

Yes :-
 In 2017, Indian government has set up Rs. 500 crores fund for Research & Development
of 5G Technology and thereby to roll out 5G by 2020, and it is also planning to auction
5G spectrum by January 2020. so Indian government is ready for this transition.
 Internet users and hence the data consumption is increasing at a rapid rate in India. So,
telecom companies can safely invest in 5G technology & can expect returns.
 Chairman of Reliance Industries Limited, Mukesh Ambani has already said
that Jio’s network is fully 5G ready & so, it is planning to roll out 5G services in India
by 2020

No :-
 Not all telecom companies are ready for 5G yet. Vodafone, one of the biggest telecom
service provider in India is not in favor of auctioning 5G spectrum in 2020. They are in the
opinion that India does not need 5G services yet.
 Airtel is not happy with the current prices of 5G spectrum auction.
 The main reason behind all these things is that Indian telecom sector is in a huge
debt of approximately 8 lakh crore rupees as of 2019. So, telecom companies do not afford
to invest in the 5G technology.
 They Did not get returns on the investment they put on 4G, telecom companies faced this
situation with 3G too. They could not reap the benefits of the investment they put on 3G.
 Till Sep 2016, many people were using 2G services because 3G services were expensive
at that time. But when Jio launched cheap 4G services in September 2016, many users
started buying 4G mobile to use 4G services. Though the main reason is the cheap prices
of 4G, another important reason for this is… there is a lot of difference between 3G & 4G.
With 4G, video calls services and the internet browsing speeds have improved a lot. So,
people made the switch. But now many people may not invest in buying 5G handsets,
because the present internet speeds are already enough for many people. And definitely
5G services will be expensive considering the investment telecom service provides are
going to invest. People may not be interested in spending more. So, there is a fear in
telecom service providers that whether they will get returns or not.
 And as per the studies on 5G technology, it has security loopholes, because it is still in the
starting stages. So, it is better to wait till the ecosystem is fully developed.
 India’s 4G internet speed is very low when compared with other countries.
So, Launching 5G services will face the same issue. So, we cannot say that India is ready
without upgrading the infrastructure first.

 3G spectrum cost telecom companies about Rs. 10,000 crore each. They could hardly
make much returns on this and eventually had to slash prices by 80% to get the customer’s
attention.
 4G came so soon that 3G spectrum lost its value. The challenge isn’t making India 5G
ready but making customers ready to pay for 5G which telecom companies find difficult.
 India’s 4G ecosystem is not even mature yet, the country has slowly started to adopt it and
this clearly could be the reason of delay in rolling out 5G by the proposed deadline.
 4G low latency network – problem for driverless cars, virtual reality headsets
 In the 5G network environment, the peak data rate can be increased to about 10 to 20
Gigabits per second – up from 1 Gigabit per second in the most advanced 4G networks of
today
 The government has, moreover, constituted a high-level panel for early rollout of 5G
services in India and assigned a corpus of Rs. 500 crore to ensure the same.

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