Telecom players Airtel, Reliance Jio, and Vodafone Idea are reportedly keen to participate in the 5G spectrum audition in India to expand their service and increase revenues.
The Indian government hopes that 5G networks will cover at least 20 towns and cities across the country by the end of 2022.
“Airtel is already testing 5G equipment. However, questions remain over whether it can afford to build 5G meaningfully,” says GlobalData analyst thematic intelligence team Priya Toppo.
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“Reliance Jio's massive financial resources and existing market position will likely allow it to gain a market-leading position. Vodafone Idea, on the other hand, is likely to struggle due to its weakening customer base and financial position.”
GlobalData says majority of Indian consumers are still uncertain about 5G considering data charges and smartphone prices in rural regions.
Many are still accustomed to using 4G services.
As a result, GlobalData forecasts only 27% of the country’s mobile subscribers (around 329 million) will be using 5G services by 2026.
“Despite higher data prices, 5G promises superior service quality compared to the existing 4G networks. This should encourage digital businesses including edtech, healthtech, agritech, fintech, and e-commerce to further accelerate 5G adoption in India,” Toppo concludes.
This first appeared in the subscription newsletter CommsWire on 1 July 2022.
