Breaking News

5G launch in India possible on 3.5GHz spectrum band

Implementation of 5G launch in India for commercial use in a couple of years and the average revenue per user (ARPU) is "very low" in India, Motilal Oswal said.

Motilal Oswal Financial Services said that the launch of 5G in India for commercial use is "still more than a couple of years away". The company said in a report that the extended time frame for 5G is due to multiple factors such as "spectrum availability" and that "ecosystem development would take much longer." 

5G launch in India possible on 3.5GHz spectrum band

The report follows in the footsteps when Airtel 5G launch in India and Bharti Airtel announcing that it has become the "first" operator in India to "successfully demonstrate" and "orchestrate live 5G service through the commercial network in Hyderabad". Airtel said its 5G demonstration was on its "existing liberalized spectrum in the 1800 MHz band" via non-autonomous network technology (NSA).

Motilal Oswal says true 5G power would be possible in the 3.5 GHz spectrum band
Motilal Oswal said Airtel's demonstration is "showing its capabilities in 5G and empowering the 5G ecosystem", such as applications, content and services.

"There are no incremental investments as they would ultimately offset the 4G investments and part of the investment would be fungible," Motilal Oswal said in a report Thursday.

However, the diversified Indian financial services firm said Airtel needs a "wider slice of spectrum" currently available in the 3.5 GHz spectrum band to "roll out" on an NSA network.

"Without the 3.5 spectrum Airtel may start its 5G services," Motilal Oswal said in a report. "But the latter would play an important role as the true power of 5G would only be achieved with [a] good amount of spectrum at 3.5 GHz."

The company also noted that India's second largest wireless operator has a "large slice of spectrum between the 1800 MHz and 2100 MHz bands" along with the sub-Giga band spectrum in most circles. Motilal Oswal said Airtel's proprietary spectrum can be "reformulated over time for 5G" across India.
"The implementation of the NSA could be better as it would complement its existing 4G network," 

Motilal Oswal said in a report Thursday. “The implementation of the autonomous network (SA) would require a new core. So the initial implementation would be on NSA and then for some pockets it would be implemented on an SA network. "

Motilal Oswal says ARPU is very low in India
Motilal Oswal said the launch of 5G services in India will only happen "when operators can offer a true 5G experience".

"This will depend on the availability of reasonable amounts of spectrum in the 3.5 GHz band," Motilal Oswal said in a report Thursday. "It can also be implemented by restructuring the lower spectrum bands, but it would be premature to do so at this point given the availability of 4G over 5G today."
It should be noted that Airtel said Thursday that the 5G experience will be "available" to its users "when the right spectrum is available" and when it receives government approvals.

Motilal Oswal also said that the 5G ecosystem in India should be a "common global system", as it would ensure that "device prices are lower and interoperable". The company said "an ecosystem of devices, content and applications is needed" and that Airtel is "working with partners to create specific solutions for India".

It was also noted that Airtel has one million "5G ready" users on its network with a telephone cost of Rs 20,000. The company said prices for 5G devices should be between Rs 10,000 and Rs 15,000 for the "masses adopting this technology". Motilal Oswal noted that Airtel is partnering with "more device OEMs" with 5G capabilities, while Ericsson is partnering with Airtel for the 5G implementation.

Basically, Motilal Oswal said that the average revenue per user (ARPU) in India is "very low" and that it "must increase" to Rs 200 and then Rs 300.

No comments

Do not Add Links to Comments - Spam Comments will be Deleted