Technology trends that will define the Indian telecom industry

Year 2021 saw some major changes for the Indian telecom sector with the central Cabinet’s announcement of reforms. This move promises to open a plethora of revenue-generating opportunities and social benefits in this year. The focus of telecom is expected to shift toward gaining competitive edge in driving digital transformation and innovative tech solutions rather than just being an enabler. With India being the second largest telecom market in the world, global giants are looking forward to partner with Indian telcos.

Post pandemic, dynamics have been challenging for the telecom industry, which emerged as an essential service provider to cater to the spike in data consumption. Technologies like 5G and satellite broadband are set to shape up the next generation of networks by enabling bandwidth-hungry applications, which require high throughput and ultra-low latency. The Indian telecom sector has ventured into space with satellite broadband, which aims at connecting the most remote and rural areas. Till now Satcom was being exclusively used for defense, maritime, aviation, etc. But now global companies are partnering with Indian telecom providers to launch commercial broadband services in 2022. Satellite broadband market will be USD 500 million+ market opportunity in near term according to Satcom Industry Association-India.

Year 2022 will see convergence of industries with telecom becoming the center, and collaborations will be the key strategy to drive revenues from enterprises and commercial sector. The cultural shift driving demand for data services, where products and services are more focused toward digital engagement, will be the key highlight. The manufacturing sector is expected to be an early adapter with automation already in process shape up Industry 4.0. Smart factories will connect production lines across the facility, enabled by massive machine to machine communication. Industrial Internet of Things (IIoT) will revolutionize the way manufacturers run their operations.

Cloud deployments are likely to pave the way for most of the digital initiatives. Cloud-native platforms help communication service providers (CSPs) in optimizing network throughput and minimize capital expenditure. Such technology can facilitate operators to adopt the pay-as-you-grow business model, where they only pay for the services being used to remain relevant in a highly competitive market.

With the increasing bandwidth, latency, and heightened security demands, enterprises are looking forward to private networks, which have the ability to harness the potential of 5G in India. A comprehensive policy on partnerships between operators and private network infrastructure companies, including spectrum distribution, is required before the auctions in 2022.

The past year has also seen a major shift in the Indian gaming sector which has become more interactive and real-time. Meeting customer demand for providing immersive experience also requires robust connectivity, eliminating lags. 5G holds the key for such services due to features like higher internet speed and ultra-low latency. The Indian gaming industry is currently valued at USD 1.5 billion, and is likely to triple by 2025.

With the emergence of IoT technologies like 5G, cloud, and edge computing, integrated devices will handle huge amounts of data, which will make businesses and consumers vulnerable to threats.

Cybersecurity requirements will go beyond current practices with devices and users becoming mobile and computations happening closer to the source. Hence, CSPs need to secure data against increasing number of cybercrime.

Outlook. Proliferation of network usage is a key milestone for digital transformation in India. As we are on the cusp of revolutionizing the networks with the launch of 5G, the question is on its auction prices and affordability, which is critical for massive adoption. However, such technological advancements in the telecom sector will continue to drive revenues and subscriber growth. Operators will need to support these advancements by opting for partnerships within other sectors and offer next-generation applications and personalized experience to their customers.