Connectivity offered through resilient networks is the backbone of technological innovation and change in today’s world. A connected society can unlock the true potential of digital convergence by driving transformation and advancement in industry and re-imagining traditional systems. The next era of digital connectivity will be brought forward by 5G, which will serve as the pillar supporting hyper-connectivity that brings together people, devices, industrial and physical ecosystems seamlessly through key technologies. The facilitation of digital transformation through 5G will require ecosystem collaboration between Telcos, OEMs, Infrastructure companies and Government to increase consumer adoption and market readiness so that the benefits of 5G are realized flourishingly. The NASSCOM-Arthur D Little report “5G – Unfolding India’s Era of Digital Convergence” aims to present a holistic view of 5G in India, analyzing its impact on the economy and related opportunities for different industries while assessing the challenges for ecosystem players in its implementation. The analysis of the ecosystem gives keen insight into the way forward on how to effectively deploy, advance and capture the potential of 5G and this report also provides recommendations on how various players can join forces to achieve this.
The Global 5G story
- By 2025, number of 5G connections is estimated to be in excess of 4 bn, representing 35% of total connections; 5G mobile subscriptions are expected to grow at a CAGR of over 50% across the globe.
- 5G is expected to accelerate global GDP growth and enable a $1.5 Tn revenue potential by 2030
- Key sectors that are expected to benefit the most from 5G include healthcare, energy & utilities, manufacturing, and retail
The India 5G story
- At ~1.1 Bn, India has 2nd highest number of telecom users in the world, of which 740 Mn are 4G customers
- Indian telecom ARPU is on an accelerated path, with 3X growth expected between 2018-2025
- India expected to have 500 Mn+ 5G users by 2027
- 5G can contribute up-to 2% of India’s GDP by 2030, a~$180 bn impact5G opportunity is expected to be spread across consumers and enterprises in different verticals, involving both public and private 5G networks
Top Sector wise 5G use cases
- Energy & Utilities – Smart metering, smart grids, efficient consumption, predictive O&M
- Retail- Efficient customer journey, data analytics, and virtual shopping
- Healthcare- Online consultation, robotic surgeries, cloud-based patient profiling and wearables
- Manufacturing- Digital transformation, smart factories, intelligent supply & planning
Implementation Challenges –
- Infrastructure Upgradation- Adequate infrastructure upgradation and fiberisation for 5G deployment, along with network densification to be addressed.
- Consumer adoption- Optimal pricing of 5G services is required to shift customers from 4G networks. This may be a challenge for operators looking to recover spectrum investments and drive ARPU related profits
- Comprehensive policy reforms- GOI to work with stakeholders to implement comprehensive policies to address issues such as fiberisation, skill-development, cybersecurity & ensure 5G services can be incorporated for the digitalization of all sectors in an efficient manner.
- Ecosystem collaboration- Operators, tech-companies, and OEMs must work together to advance and commercialize effective use-cases across different industry verticals