Making 5G work for India

5G technology is a qualitative leap from the wireless technologies, e.g., 2G, 3G, 4G, and Wi-Fi, in use today. Compared to 4G, 5G offers exponentially greater data speeds, lower latency, and enhanced support for machine-to-machine (M2M) or Internet of Things (IoT). With the auction of spectrum now over, 5G services will soon be available in India, albeit later than it was hoped.

The Department of Telecommunications (DoT) officials have frequently shared their ambition in 5G that India does not lose out to countries that dominated earlier generations of wireless technologies. It took several measures before any commercial 5G networks were operational elsewhere. It set up a high-level committee as early as 2017 to advise on how India could exploit the immense potential of 5G.

The committee provided elaborate recommendations on spectrum management, regulatory policy, applications, use cases, trials, and much else. The National Digital Communications Policy, 2018, emphasized harnessing the potential of 5G.

The delay in spectrum auctions has undone much of our early effort to be a 5G pioneer. Over 250 networks are now operational globally. 5G services are available in all developed and many developing countries, even if access is variable. Projections indicate that the world could have a billion 5G users by the year-end. While this is a setback for our plans, the technology is more mature and the equipment cheaper.

The auction of spectrum is, however, an important milestone. All existing private mobile players now claim to have the spectrum they need to deploy 5G services. In addition, the Adani group bid for and obtained spectrum to support captive private 5G networks for its businesses, including airports, ports, and mining. The government is pleased that the companies have bid a mammoth ₹1.5 trillion in a transparent auction.

However, there are aspects of the 5G auction that must worry us. While the auction was manifestly successful, recall that all 5G spectrum received no bids beyond the reserve price determined (administratively) by the government, on the advice of the Telecom Regulatory Authority of India (TRAI).

The absence of any competing bids for 5G frequencies reflects weakness of the auction design. Bidders faced a take-it-or-leave-it predicament. Will the high price encourage them to target more lucrative customers or regions? The focus on exchequer revenues may have cost India its ambitious 5G targets.

The speed and extent of 5G rollout will inevitably reflect the realities of the market. The business case for delivering 5G to retail users is weak. The service features may not have wide appeal, and affordability would be an issue if 5G services are costlier, as widely expected.

The services would interest enterprises most. For instance, industries like manufacturing, logistics, health, gaming, and entertainment can exploit many of the above-mentioned 5G features, and will find them value for money. The operators would inevitably prioritize them, at least in the beginning.

The new 5G market will pose new challenges too. 5G services could transform other sectors, besides telecommunications. They include highly regulated ones like health, education, gaming, transport, etc. For instance, accountability in remote surgery and driverless vehicles will require serious engagement between diverse regulatory bodies, and will take time, effort, and political will.

5G markets will also test India’s telecom licensing regime. A 5G feature, like network slicing, enables a player to seed several independent networks and services, which currently require a license to deploy.

Similarly, determining the terms for deploying standalone private networks will be a challenge as well as their enforcement. A rigid licensing regime will severely curtail the value that 5G can deliver. India will need to fix it to mitigate its late entry into 5G services.

[Dr Mahesh Uppal heads Com First (India), a consulting company, specializing in regulatory aspects of telecommunications and India. [email protected]]