According to forecast by GlobalData, 5G will drive mobile data revenue by 67 per cent and mobile data usage by 29 per cent in India between 2020 and 2026.
The report further notes that the major telecom players in India, Airtel, Reliance Jio and Vodafone Idea Limited (Vi), are reportedly keen to participate in the 5G spectrum auction to expand their service offerings and increase revenues. Meanwhile, the government hopes to see 5G networks covering at least 20 towns and cities across the country by the end of 2022.
Commenting on the report, Priya Toppo, analyst, Thematic Intelligence team, GlobalData, said, “Airtel is already testing 5G equipment. However, questions remain over whether it can afford to build 5G meaningfully. Reliance Jio’s massive financial resources and existing market position will likely allow it to gain a market-leading position. Vi, on the other hand, is likely to struggle due to its weakening customer base and financial position. Despite higher data prices, 5G promises superior service quality compared to the existing 4G networks. This should encourage digital businesses including edtech, healthtech, agritech, fintech, and e-commerce to further accelerate 5G adoption in India.”
The report by GlobalData mentiones that as the majority of Indian consumers are still uncertain about the adoption of 5G, considering the imminent increase in data charges and smartphone prices, especially in rural regions, most of the mobile subscribers will still be using 4G services. As a result, GlobalData forecasts only 27 per cent of the country’s mobile subscribers (around 329 million) will be using 5G services by 2026.
