New Telecommunications Minister Ravi Shankar Prasad announced earlier this month that testing will begin in less than four months. And, then the upcoming spectrum auction will include 5G bands. And, then we will decide on a 5G networks launch date in India.
India has set a date for the first 5G license auction this year. Despite being surrounded by unknowns, complaints from major telecommunications companies about the high price. And the role of Chinese corporation Huawei, a technology leader that the US has vetoed.
This technology makes it possible to multiply speeds and the number of connected devices with low latency. Well beyond the capabilities of 4G and will accelerate the Internet of Things or the vehicles of the future.
The Indian “Telecos” have been in a price war for three years since the break-in of the Jio company. Which belongs to the Indian giant Reliance The Mukesh Ambani.
Many Companies Competing for Each Other
Vodafone Idea and Bharti Airtel are the other two companies competing for a cake of around 1.3 billion people in which “only” a quarter owns a smartphone.
The problem is that telecommunications are losing money. Because of the price war and the implementation of 5th generation technology.
“The industry has pledged to invest 555,000 million rupees (around 70,604 million euros) in the infrastructure of the 5G network.” The director-general of the Association of Mobile Operators of India (COAI) Rajan S. Mathews said.
Large Amount of Investment to be Used In Launching 5G Network
A good part of the money is to be used to expand the previously limited fiber-optic network. According to the report of consulting firm Crisil, the bill could rise to almost 12,000 million euros in the next two or three years.
With so high costs and skyrocketing debts, it is not surprising that telecommunications companies are demanding the price of 62 million euros per megahertz in the 3.5 GHz band proposed by the Indian regulatory authority.
“The recommended price for the 5G band is almost 30 to 40% higher than in markets like South Korea or the USA,” said Mathews
Questions from Participants
These complaints, which question Bharti Airtel and Vodafone Idea’s participation in the auction. According to analyst Hugh Unjhazy of the consulting firm International Data Corporation (IDC), is unfounded.
“I think companies are genetically predisposed to complain that they overpay regulators.” He said before warning that he expected the price to be normal in the region “or a little cheaper in India.”
But beyond the protests, there is an Indian company that is particularly enthusiastic about 5G: Reliance Jio.
Jio is Leading Network Industries in India
The company, which caused a real earthquake in the industry by entering the industry and making mobile broadband prices the cheapest in the world. The company has announced that it will launch 5G commercially 90 days after the auction.
“Jio has a high-quality user base because it doesn’t have legacy 2G or 3G connections. They’ve spent a lot only on LTE networks (aka 4G),” said analyst Parv Sharma of counterpoint, a consulting firm in India.
The giant Reliance Jio’s company, given the vast size of the Asian nation. And, the fact that the “Telecom” is not even remotely complete the transition to 4G, is better positioned than its competitors. To begin a rollout that is undoubtedly gradual will take place.
Indian Government may Ban Chinese Network Company Huawei
In addition to the challenges facing businesses, the role that Indian authorities are leaving to Chinese multinational Huawei may also affect the adoption of 5G.
The global leader in the development of this technology is facing a US veto accused of espionage amid the trade war with China.
The Indian government has not yet decided whether to ban Huawei from participating in the development of 5G. The Finnish Nokia and the Swedish Ericsson are also competing.
Telecommunications companies are backing Huawei after working very closely with no incident and with technology. With the high quality adapted to Indian needs, according to COAI.
Much of India’s 4G infrastructure comes from Huawei. What if the Indian authorities close the door on the Chinese company now?
“There are many things that are not yet clear. What if Huawei vetoed and stopped supporting infrastructure?