The revolution started by 4G technology can be scaled up but the country cannot bridge the digital divide
NS fifth generation mobile network, or 5G, is the next tier of mobile networks that will shape the Fourth Industrial Revolution, or Industrial 4.0, by facilitating smart and developing societies, quality of service delivery, innovation, etc. Commercial 5G networks began to be deployed in 2020 and are expected to reach 12% of the world’s mobile connections (1.1 billion) and generate up to US$1.3 trillion in revenue for operators by 2025. The technology used by 5G will improve data transfer speeds to unexpectedly high levels – nearly 100 times higher – and reduce latency times helping mission-critical services. Thus, 5G is essential but are we ready for it?
some obstacles
India’s telecom sector, which has revolutionized the digital space and facilitated services-led growth and quality of life, has been projected to be one of the top performers globally for many years; But this too has been in limbo for the last few years. Moreover, the Supreme Court of India’s decision on dues being sought by the Department of Telecom (estimated to be over ₹90,000 crore) has further worsened the financial position of telecom companies. No surprise there. That is, the number of telecom operators has come down a handful from around 15 a few years ago. In this scenario, the huge investment required for 5G may raise their concerns. With 5G testing in developed countries like Japan and the United States of America. Turns out the investment is enormous, ranging from $6 million per small city to $60 million per large or densely populated city.
lots of possibilities
The new generation mobile networks have the transformative potential of providing massive benefits to the Indian economy, which when augmented with artificial intelligence, provides a new dimension to connected and autonomous systems. Its use is an opportunity for Indian policy makers to educate and empower citizens and businesses and transform existing cities into smart and innovative cities. This could allow citizens and communities to reap the socio-economic benefits and comforts provided by a well-advanced, more data-intensive, digital economy. Broadly, 5G uses in India include advanced outdoor and indoor broadband, Internet of Things, smart cities, smart agriculture, energy monitoring, remote monitoring, smart grids, telehealth, industrial automation, remote patient monitoring and industrial automation. can. certain areas. There is great potential for India to move towards an advanced digital revolution.
However, to assess the commercial viability for 5G deployment in India, it is imperative to conduct an independent economic assessment, starting with metro cities. Until that happens, we can continue to enhance the existing quality of 4G networks. Singapore had planned four 5G networks – two with extensive 5G networks and two others with smaller and limited coverage, due to the high cost of fiber cable deployment and the lack of 5G airwaves.
what needs to be done
The immediate priority for India will be to identify the end users and population to be covered, analyze existing networks and operators, identify cities for 5G roll out, develop an investment model and reduce digital risk and pricing. Exteriority and use of different areas. There is a need to carefully plan the deployment of 5G in India after a cost benefit analysis by independent experts which will create a level playing field through market mechanisms such as facilitation, simulation, auction, ensuring competitiveness, functioning markets etc.
Once the case for 5G is made, the Telecom Regulatory Authority of India (TRAI) may consider preparing a foolproof spectrum road map with a predictable renewal process that will offset the huge investment required for deployment and ensure coverage. A level playing field should be created for all telecom companies, with more focus on companies that have experience in ensuring telecom networks in remote areas and have the ability to provide affordable coverage. Global testing shows that the key areas for 5G deployment are 5G spectrum band harmonization, pricing and spectrum sharing. There is a need to consider spectrum allocation processes in favor of sharing and investment of available spectrum to maximize its efficient utilization, especially in rural areas.
Steps suited to the required area
Since deployment of 5G networks is costly, both the central and state governments may need to consider measures that encourage fiber investment, attract investment through public private partnerships (PPPs) and are of modest interest. Provides facility of investment fund on the basis of Fortunately, the big telecom package along with the reforms announced by the government in mid-September brings relief and creates an enabling environment for investment in the sector. Steps like moratorium on dues, redefining adjusted gross revenue and reducing spectrum charges will help all telcos, especially Airtel and Vodafone Idea, which face uncertain financial conditions. Moreover, these policy reforms as well as allowing 100% FDI in the telecom sector under the automatic route augurs well for the sector to attract investments. Implementation of 5G requires huge investment and the relief package is a welcome step.
tax issues as well
The government also needs to address information asymmetry and negative externalities through laws and regulations/taxes and subsidies. Deployment of 5G technology will also require access rights to government infrastructure such as traffic lights, lamp posts, etc., where wireless operators can deploy electronic small cell equipment. Additionally, operators may be charged reasonable fees by state and local governments for cost-effective deployment of 5G equipment. In addition, the removal of tax burden for deployment of fiber networks reduces associated costs, thereby encouraging investment. As done by the Singapore government, may help in smooth deployment of fiber in India.
As India has already witnessed a digital revolution even in its remotest areas due to cost-effective 4G technology, the use of 5G can play a vital role in expanding the region and facilitating India’s goal of emerging as a manufacturing and innovation hub. . The negative impact of 5G is further widening the ‘digital divide’. Therefore, government policies should also focus on affordable coverage through synchronization of bandwidth.
Surjit Karthikeyan, Deputy Secretary, Ministry of Finance, Government of India. Pravakar Sahu, Professor, Institute of Economic Development (IEG), Delhi. Views expressed are personal
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