Exploring 5G Monetisation in India: Reliance Jio, Bharti Airtel, and FWA Services
5G Monetisation Challenges in India
In the landscape of Indian telecommunications, Reliance Jio and Bharti Airtel are at a pivotal juncture, where monetising 5G networks remains a struggle. Despite the commercial launch of 5G two years ago, significant breakthroughs in profitability have not yet emerged. The introduction of Fixed Wireless Access (FWA) services offers a glimmer of hope for telecom operators.
The Role of FWA as a Key Application
FWA has become a fundamental service, breaking through the barriers of low fiber broadband penetration in India. Now, telecom giants are actively implementing FWA to reach underserved markets. Airtel aims to expand its coverage, already operating in over 1,300 cities, while Jio targets connecting 100 million households to its broadband networks.
- 10% revenue growth projected from FWA offerings by 2027.
- Neil Shah of Counterpoint Research anticipates a major market shift.
- Focus on both consumer and enterprise clients for increased adoption.
Addressing Consumer Concerns and Market Dynamics
Despite the promising outlook of 5G networks, adoption challenges persist. Consumer price sensitivity limits the uptake of affordable devices and plans. SP Kochhar underscores that for true market penetration, 5G devices should be priced akin to earlier technologies. This will facilitate the transition from 4G to 5G.
- High costs of spectrum acquisitions continue to pressure telecom finances.
- Standardisation in Right of Way (RoW) permissions is crucial for planning.
- Potential for private 5G networks arises but remains contentious within the industry.
Conclusion: The Path to Future 5G Monetisation
As the 5.5G era approaches, telecom players must continue to refine their strategies. The integration of artificial intelligence and machine learning within new network architectures could prove transformative. The landscape remains challenging, yet FWA services hold promise for reshaping how Indian telecom companies capitalise on emerging opportunities.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.