India has been witnessing fast-paced 5G roll-outs throughout 2023. Within a year of the launch of 5G services, telcos have deployed over 400,000 base transceiver stations spanning 738 districts in the country. Further, 5G subscription growth has also been fairly strong. At the end of 2023 – 14 months after commercial launch – 5G penetration is estimated to have reached over 11 per cent. Smartphone vendors have also been actively leveraging the growing 5G opportunity. With stakeholders across the telecom value chain increasing their efforts to scale up 5G, the current year is expected to witness further 5G expansion. A look at the key initiatives undertaken in 2023 to strengthen India’s 5G ecosystem and the way ahead…

Telcos fast-track 5G deployments

The year 2023 witnessed major activity on the 5G front, especially by Reliance Jio and Bharti Airtel. Both Jio and Airtel met the minimum 5G roll-out targets for the first year in all 22 service circles across the country. While Jio deployed over 115,000 5G sites and nearly 690,000 5G cells across India, Airtel’s 5G Plus network went live in 3,000 cities and towns.

Meanwhile, Vodafone Idea Limited (Vi) successfully tested 5G services in August 2023 in both 25 GHz millimetre wave (mmWave) and 3.3 GHz mid-bands in Pune to meet the minimum roll-out obligations mandated by the Department of Telecommunications (DoT). Further, Vi recently announced that it would begin offering 5G services seven to eight months after securing funding. The telco also stated that by then it would have clarity on monetising the technology.

State-run Bharat Sanchar Nigam Limited (BSNL) also plans to start 5G roll-outs soon. In June 2023, the government had allotted 4G/5G spectrum to the telco as a part of the third revival package for BSNL, which included an infusion of Rs 890 billion for the allotment of 4G/5G spectrum through equity infusion. The spectrum allotted included 10 MHz in the 700 MHz band for 22 licensed service areas (LSAs), 70 MHz in the 3300 MHz band for 22 LSAs, 800 MHz in 21 LSAs and 650 MHz in one LSA in the 26 GHz band, 20 MHz in six LSAs and 10 MHz in two LSAs in the 2500 MHz band. While the telco has started rolling out 4G in certain areas, it aims to transition to 5G soon after strengthening its 4G coverage.

Reform measures

Reforms and regulatory measures during the year 2023 played a crucial role in providing impetus to 5G roll-outs. The terms for spectrum sharing, trading and leasing were eased while procedural reforms were introduced in wireless licensing. Moreover, in Union Budget 2023-24,

Rs 55.6 million was allocated for building a 5G test bed.

The government also took steps to scale up infrastructure deployments for 5G network roll-outs. To this end, amendments were made to the right-of-way rules for telecom infrastructure during 2023. The recent amendments are in continuation of the previous amendments made in 2017, 2021 and 2022. The latest amendments are expected to expedite 5G roll-outs by utilising existing infrastructure, enable rapid network reinstatement in the event of underground telecom infrastructure damage, simplify application procedures for multiple small cell sites and allocate central government areas for small cell deployment at no cost.

Another noteworthy move was the waiving of testing fees for meeting 5G roll-out obligations in the 3300 MHz and 26 GHz spectrum bands starting August 2023. Moreover, DoT announced plans to conduct another round of auctions for 5G spectrum worth around Rs 2.5 trillion in March 2024. This may include spectrum above the 37 GHz band. The auction will offer airwaves in 11 bands, ranging from 600 MHz to above 37 GHz.

Further, DoT is reportedly examining methodologies to allocate spectrum directly to enterprises for private 5G networks. It has set up an internal study group to suggest possible allocation methods. The mo­ve, if undertaken, would enhance the adoption of 5G private networks in the country.

Encouraging competition would be crucial to sustaining the growth momentum as 5G has the potential to reshape the socio-economic fabric of the country.

Handset players up their game

Handset players too leveraged the growing 5G network footprint. According to CyberMedia Research’s India Mobile Handset Market Review Report for the first half of 2023, India shipped around $13 billion worth of smartphones with 5G capability during the six-month period. The share of 5G smartphone shipments increased to 44 per cent as compared to 29 per cent in the first half of 2022, marking a 30 per cent year-on-year growth. Further, in the third quarter of 2023, India’s 5G smartphone shipment share rose to 57 per cent, marking a 78 per cent year-on-year growth.

Ironing out issues

However, despite the uptick in 5G deployments, certain challenges continue to hamper growth in the market. As per telecom operators’ submissions on a consultation paper released by the Telecom Regulatory Authority of India (TRAI), titled “Digital Transformation through 5G Ecosystem”, the key hurdles faced in 5G deployment include infrastructure limitations, spectrum availability and affordability, and regulatory hurdles in getting permissions and licences. All stakeholders called for easing the spectrum allocation process and the approval processes relating to installing small cells on the available street furniture.

Further, Vi asked for a reconsideration of the high spectrum prices and huge levies on operators. Meanwhile, BSNL recommended that the government should create an umbrella regulatory body that prepares a single set of policies and regulatory guidelines for the 5G ecosystem, which includes cross-sectoral stakeholders. Reliance Jio termed net neutrality and data charging rules as restrictive and called for a more agile regulatory framework to deal with 5G.

There is, moreover, a lot that needs to be done to facilitate the deployment of optical fibre and telecom towers, especially at the state level. Despite India being the second largest telecommunications market globally, the fibre km per capita in the country is relatively low. Another key challenge amidst rising investments in 5G services is monetising the 5G network optimally.

Sustaining the growth momentum

Going forward, plugging the gaps and encouraging competition would be crucial to sustaining the growth momentum as 5G has the potential to reshape the socio-economic fabric of the country. Industry experts predict that 5G will contribute about 2 per cent to India’s GDP, amounting to $180 billion by 2030. Further, as per the Ericsson Mobility Report, 5G subscriptions are expected to grow to 860 million and account for 68 per cent of the mobile subscriptions in the country by the end of 2029.

However, leveraging this potential would require multi-stakeholder collaboration. A notable step in this regard has been the recent launch of the Bharat 5G Portal, an integrated portal serving the interests of start-ups, industry and academia in the 5G, quantum communications, 6G and intellectual property rights (IPR) domains. The portal acts as a one-stop solution for all quantum, IPR, proof of concept/pilots, 5G and 6G-related works, encompassing academic research and development, industry standards, original equipment manufacturers, start-ups/mi­cro, small and medium enterprises and subject matter experts. It aims to drive India’s 5G capabilities and foster, foster innovation, collaboration and knowledge-sharing within the telecom sector.

Commenting on the launch of the Bharat 5G portal, Dr Neeraj Mittal, secretary (T), DoT, and chairman, Digital Communications Commission, said, “India’s 5G roll-out is amongst the fastest in the world and now we are already talking about 6G. India has the second-largest telecom network in the world and has surprised the world with the development of indigenous 4G/5G technologies in a short span of time. India has 100,000 start-ups today and it is a great opportunity for countries to collaborate with India. The world has realised that India is a trusted partner and everybody now wants to collaborate with India, whether it is on 5G or 6G technology.”

The collaborative efforts ushered in by the initiative will go a long way in promoting not only the 5G ecosystem but also a future-ready technology landscape essential for building a truly digital India.

Kuhu Singh Abbhi