5G propels Digital India’s watershed moment

Despite challenges, India’s telecom market shows promising signs for the 5G rollout, with the potential to become a leading global market.

The Economic Survey 2022-23 stated that the rollout of 5G services in India can unleash new economic opportunities and help the country leapfrog the traditional barriers to development, spur innovation through startups and established businesses and advance the Digital India vision.

Since the 1980s, when 1G was introduced, the country has come a long way from the bulky phones and communication that was limited to a few people for professional purposes. 2G brought in the demand for personal use, and 3G ushered in phones that could fit in one’s pocket. 4G gave India fast-streaming smartphones, app stores and video streaming and 5G is going to be a game changer that would reshape both our professional and personal lives by enabling new use cases like connected vehicles, augmented reality (AR), enhanced video and gaming, among several others.

India’s digital transformation journey has been spectacular. While its initial phases were marred by delayed deployments of the latest mobile telephony (there was a gap of around six years between the auction and mass deployment of 4G waves) and regulatory and other roadblocks, the ecosystem came together and 5G is witnessing a comparatively quicker and smoother rollout. Government initiatives like Digital India have also helped in the transformation.

All these factors have led to an exponential increase in demand for data in India. Accelerated by low tariffs and easy availability of low-cost 4G smartphones, India’s mobile-first broadband has witnessed tremendous growth.

THE SECTORAL OUTLOOK

Connectivity is an enabler that allows technologies to realise their full potential. The Fourth Industrial Revolution offers an opportunity for sectors to enhance their competitiveness and contribution to regional economies. Its full potential will be realised through the wide-scale deployment of 5G communication networks, as they will transform many sectors, such as manufacturing, transportation, public services, healthcare, agriculture, education, banking, etc. 5G networks will make smart cities, smart hospitals and smart factories a reality.

Smart cities: City governments use 5G networks to provide better services to citizens, track public utilities, and monitor city infrastructure proactively. IoT-enabled dumpsters and trucks can monitor fleet inventory and help cities understand how much waste they produce and where that waste accumulates. Transportation departments can use 5G to monitor highway congestion and reliably access high-definition, live video feeds of traffic cameras across the city, with the ability to span hundreds of miles and support millions of devices.

By the end of 2028, India is likely to have 700 million 5G subscriptions, accounting for 57% of overall mobile subscriptions in the world.

The 5G use cases in cities are fleet tracking, infrastructure monitoring with IoT sensors, city-wide video surveillance and traffic cameras and secure and controlled internet access for residents.

Healthcare: The healthcare sector is poised to undergo a transformative shift with the integration of 5G technology. This advanced connectivity is expected to create a connected ecosystem in healthcare that is predictive, preventative, personalised, and participatory. There are several key use cases where 5G can revolutionise healthcare services.

One prominent use case is connected healthcare, which encompasses remote patient monitoring and telemedicine. With 5G, healthcare providers can remotely monitor patients’ vital signs in real time, enabling timely interventions and personalised care. Additionally, 5G facilitates online consultations and digital prescriptions, offering secure and efficient healthcare delivery, particularly in rural areas where access to medical services is limited.

Smart hospitals are another area where 5G can make a significant impact. By digitalising and centralising medical records, 5G enables quick and secure access to patient information, expediting the diagnosis and treatment process. Internet of Things (IoT) devices play a crucial role in smart hospitals, streamlining processes, improving crisis management, and providing real-time information on the availability of hospital beds. This enhances operational efficiency and patient care.

Healthcare automation is a promising application of 5G technology. Remote robotic surgeries can be conducted with the precision and expertise of specialised surgeons, regardless of geographical limitations. Augmented and virtual reality (AR/VR) technologies can assist in medical procedures and training by providing immersive visualisations and simulations. Medical professionals can even learn complex procedures online using haptic gloves equipped with sensors. Moreover, drones can be employed for medical service delivery, enabling faster delivery of medicines, vaccines, and the collection of medical samples.

The integration of 5G technology in healthcare holds tremendous potential for improving patient care, outcomes, and accessibility, particularly in underserved areas. By leveraging the power of 5G, healthcare providers can create a healthcare ecosystem that embraces innovation and empowers patients in their healthcare journey.

Education: The high-speed connectivity of 5G, lower latency and the ability to connect a massive number of mobile devices, could enable new and improved opportunities to increase equal access to education with distance and remote learning.

One compelling use case is the integration of AR and VR technologies into new learning platforms to significantly enhance the learning experience for students. Another impactful application of 5G is the real-time live streaming of lessons with ultra-high-definition (UHD) 8K resolution. This advancement can greatly improve access to education in remote and rural areas.

The use of robots in education is another area where 5G can play a transformative role. By leveraging the high-speed connectivity and low latency of 5G networks, robots can be employed to make higher education more inclusive. It can also be leveraged to establish smart classrooms, campuses and universities.

INDIA VS. GLOBAL

As the rollout of 5G network services picks up pace in the country, India has moved up by four positions from #64 in March to #60 in April on the Speedtest Global Index, according to a report by Ookla, moving ahead of some G20 nations including Russia and Argentina.

As of April 2023, 5G network access was available in 503 cities in the United States, the highest globally. China followed in second, with availability in 356 cities. While in North America the addition of mid-band spectrum now enables superior multi-band 5G experiences for many users, India is experiencing massive network deployments, making it the fastest-growing 5G market globally. According to the June 2023 edition of Ericsson’s Mobility Report, by the end of 2028, India is likely to have 700 million 5G subscriptions, accounting for 57% of overall mobile subscriptions in the world.

REFORMS AND INITIATIVES

As a major reform measure, the Government of India by releasing the Draft Telecommunications Bill 2022, has addressed the industry’s need to consolidate and revamp the existing legal framework for the telecommunication sector.

The bill proposes efficient policy-making to smoothen the right of way clearances, licencing requirements, enhanced security of the end-user, and efficient utilisation of the spectrum-and-innovation-led Initiatives.

As telcos penetrate the rural landscape, the 5G sentiment is changing, creating more complexities for pricing and eventual investments.

The bill proposes a regulatory sandbox that promulgates innovation. The related provisions of the bill allow established organisations and startups to use the sandbox for developing and testing new technology and facilitate innovation under a suitably flexible framework. Such a framework will provide special terms and conditions, and exemptions from terms and conditions of any licence, assignment, registration or authorisation. This not only empowers start-ups but also generates employment, reduces the time-to-market for new and complex technologies and helps secure funding for a long-term commitment.

To facilitate design-led manufacturing of 5G products in India under the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products, the central government amended the existing PLI scheme to extend its scope as well as timeline. In the Union Budget 2023-24, the government reduced customs duty on imports of some mobile phone parts.

FUTURE OF 5G IN INDIA

Despite the growth of the 5G ecosystem, 5G smartphones are yet to form a substantial part of the total smartphones used in India. There also remains the question of commercial viability as telecom is one of the most heavily taxed sectors, and low tariffs add fuel to the fire. As telcos penetrate deeper into the country’s rural landscape, the 5G sentiment is changing, creating more complexities for pricing and eventual investments.

The ecosystem demands contributions from various sectors, especially start-ups that can be providers of new-age solutions to propel holistic multi-dimensional growth.

To sum up, despite the challenges, the Indian telecom market has shown some promising signs of 5G rollout and adoption with the potential to become one of the leading markets in the future.

By Anita Somani

The author is a Partner at BDO India.

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