The Department of Telecommunications (DoT) will auction 5G spectrum on July 26 in India. Even as the government continues to work on the process of auctioning 5G spectrum, India’s leading service providers are testing 5G at multiple locations, focusing on use cases for both urban and rural consumers. And from the general user perspective, there is a huge anticipation for the rollout of 5G services, which is will happen around September.
Despite the unfounded concerns around radiation levels or worries around higher prices, the next generation of mobile broadband will drive mobile data usage in the country by 29% and data revenue by 67% between 2020 and 2026, according to GlobalData, a leading data and analytics company.
But the majority of Indian consumers still seem uncertain about the adoption of 5G, considering the imminent increase in data charges and smartphone prices, especially in rural regions, most of the mobile subscribers will still be 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.
Jio, Airtel, VI and 5G
Major telecom players in India—Airtel, Reliance Jio and Vodafone Idea— will participate in the 5G spectrum auction to expand their service offerings and increase revenues. The government hopes to see 5G networks covering at least 20 cities and town and cities across the country by the end of 2022.
Priya Toppo, Analyst in Thematic Intelligence team at GlobalData, said: "Airtel is already testing 5G equipment. However, questions remain over whether it can afford to build 5G meaningfully. 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."
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, the report said.
