Telcos, gaming companies gearing up to boost revenue as 5G approaches

Gaming firms in India are planning for new features and services ahead of the rollout of the 5G service in the country. The sector, which includes makers of games for mobile phones and PCs, streaming firms and even venture capital (VC) firms, sees 5G as a potential inflection point that could inspire new revenue streams. .

French cloud gaming firm Blacknut, for example, is in talks with Reliance Jio and Airtel to synchronize the launch of cloud gaming services with 5G networks in India, according to Olivier Avaro, Founder and CEO Blacknut. . In September 2021, Blacknut partnered with Airtel to organize India’s first cloud gaming demonstration in a 5G environment. Jio did not comment on the conversation with Blacknut.

Cloud gaming is a platform-agnostic form of gaming where gamers are not required to install games or purchase high-end devices. Games are streamed directly from servers, which handle the heavy processing tasks, allowing resource-intensive games to be played on comparatively flimsy and cheap devices.

“Telecoms have tried to create content, but have not been successful. They think we can help by bringing an inventory of gaming content along with the infrastructure,” Avaro said.

Airtel did not comment on its plans to launch cloud gaming on 5G with Blacknut. However, the telecom operator said that it is also looking at 5G to provide new revenue options. Adarsh ​​Nair, CEO, Airtel Digital, said, “Gaming will be a core focus of our business strategy as we look to increase our Average Revenue Per User (ARPU).”

He added that cloud gaming will be one of the biggest use cases for 5G, thanks to a “combination of high speed and low latency.”

The low latency enables the data to travel faster from the source to the user. This allows high video resolutions to be streamed smoothly on 5G phones, and use features like chat without lags and breakdowns.

Avaro said Indian telcos currently do not want to incur capital expenditure for cloud gaming. He said there is a need for massive dedicated graphics processing units (GPU) deployments on the cloud end, and added that the company is aiming to bring that infrastructure into the operating expense model for telecommunications.

According to the November 2021 report by Boston Consulting Group and VC, India’s overall gaming industry generated revenue of $1.8 billion in 2020 at a compound annual growth rate of 38%, compared to the US (10%) and China (8%). is also fast. Firm Sequoia.

Cloud gaming is not exclusive to telecom companies and firms only in India. Globally tech firms like Google and Microsoft have been running cloud gaming projects for more than two years. Google began testing its Stadia cloud gaming on 4G and 5G networks in the US back in 2020, while Microsoft joined hands with South Korea’s SK Telecom in early 2019. Google and Microsoft did not comment on this story.

Meanwhile, game streaming startup Rutgers said it is upgrading its streaming feature for gamers. “We are working on bringing an option to stream in higher resolution. We will also add audio interactions to improve the chat experience,” said Piyush Kumar, Founder and CEO, Rutgers.

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