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NEW DELHI: Enterprise use cases will drive 5G<\/a> revenues for Indian telecom operators intially but retail use cases will pick up with mass adoption of 5G<\/a> smartphones in the country, consulting firm Deloitte<\/a> India's top analyst said.
\"But initially, a major share of the revenue from 5G will be contributed by enterprises rather than consumers. The trend is likely to change in the future considering the efforts by smartphone makers to increase mass adoption of 5G devices,\" Peeyush Vaish, Partner & Telecom Sector Leader, Deloitte<\/a> India, told ETTelecom.
He cautioned that sharp returns on investments are unlikely from mass-market 5G offerings in the country.
\"They will rather come from specific use cases such as the Internet of Things (IoT), ultra-reliable, low-latency communications (URLLC), and fixed wireless access (FWA), etc,\" he added. “But when those will start bringing in significant new streams of revenue, and customers are still uncertain.
\"...enterprise customers can have private networks and can also have edge to support their secure enterprise 4.0 use cases...there will be common threads of automation, there will be common threads of cloud and there will be common threads of 5G use cases<\/a> of lower latencies and higher speeds and mass contingencies,\" Airtel CTO Randeep Sekhon previously told ETTelecom.
Indian telecom operators are expected to spend a considerable amount on small cell sites and fiber for a full-scale commercial 5G rollout in addition to spending on spectrum. Telcos also need to consider the willingness of users to migrate to 5G from 4G and the increased tariff they are willing to pay, he said.
India will continue to utilize Private 4G LTE for at least 10 more years even as 5G is on the anvil and can contribute $2.2 billion to the global economy during the next 15 years, as per the consulting firm.
“5G has been designed in a way to extend the life of 4G LTE…The growth of IoT devices and the adoption of automation by industries has increased the demand for faster data transmission and lower latency so the time to transition from 4G LTE to Private 5G will be relatively short. With Dynamic Spectrum Sharing<\/a> (DSS), 4G LTE can last for at least another decade before any sunset announcements are made,” Vaish said.
India is expected to have both public and private 5G instead of solely relying on the latter.
Private 5G, however, may gain traction among early adopters such as the manufacturing industry<\/a> in the run-up to Industry<\/a> 4.0; healthcare sector; education sector; and the transportation sector such as for enabling autonomous vehicles, Vaish said. “Indian Railways is also looking to capitalize on 5G for locomotive as well as passenger safety”.