Private 5G: India is lagging behind – Opinion News

The recent news that a telecom sector committee has been set up to consider direct allocation of 5G spectrum to companies such as Infosys, Tejas, Tata, L&T, GMR and Capgemini is encouraging for the industry. However, this comes more than 19 months after the Union Cabinet’s approval based on TRAI’s recommendations.

Policy initiatives like this that enable industry are truly amazing.-Broad digitalization powered by 5G propels India The transition to global manufacturing hub status through efficiency gains and cost reductions should proceed very slowly, even after approval from the Union Cabinet. Furthermore, this comes at a time when there is concern about the lack of significant public 5G (individual consumer market) penetration, and at the same time there is a huge opportunity to leverage geopolitical advantage in manufacturing. I am. So why did we miss out despite the highest level of approval? Industries such as healthcare, manufacturing, automotive, transportation, mining, and even agriculture stand to benefit tremendously from digitalization with 5G. It is located in

According to Ericsson, when manufacturers digitize their processes, they can increase throughput and quality, potentially increasing revenues by 2-3%, while capital efficiency improvements can reduce costs by 5-10%, increasing manufacturing Costs are reduced by 4-8%. With a strategic location and a large workforce well-aligned with improved 5G digitized production, our country’s ambition to become a global manufacturing hub will come closer to reality. . But while many major countries are far ahead, India remains an outlier in civilian 5G/LTE deployment.

China offers an incredible growth story for private networks. 5G-connected factories are being set up everywhere. It is reported that by the end of 2023, China’s industry will have developed a total of 31,600 5G virtual private networks, 2.2 times more than at the end of the previous year. 5G industrial applications have evolved from point-based demonstrations to large-scale replication in some areas. The number of 5G applications exceeds 94,000, and it is included in 71 of the 97 major categories of China’s national economy., covering nearly 70% of major industries such as mining, power, and ports. This is completely unprecedented and far ahead of India, even if he ironically discounts the progress by 90%.

Outside of China, Berg Insight predicts there will be 13,500 private wireless networks by 2026. This is 10 times the number of deployments in 2021. According to another expert organization, Analysys Mason, the number of private LTE/5G networks around the world currently stands at 95 private 5G networks in the European Union alone, which is home to just one-third of India’s population. Of these, 34 networks (36% of such networks) did not involve a mobile carrier. So even assuming that these include all cellular and WiFi networks except 5G. On the other hand, there are only two such networks. If we look at China and other countries, we see that there is huge scope for India to catch up with its peers. There is no doubt that the lack of direct allocation of frequencies to users in businesses and other industries is a major reason for the delay. According to the company, it is not practical to set up his 5G through a carrier (telco). Businesses require very strict service level agreements (SLAs) to meet performance requirements, and using public networks or having a carrier set up a network can help meet those requirements. I feel like I can’t.

We believe that businesses undoubtedly know their requirements best and can better plan and configure them through vendors such as Cisco, Ericsson, Nokia, Samsung, and TCS. Directly so, as the carriers themselves set up and maintain their networks through such vendors. Additionally, telcos reportedly add up to 40% margin when providing spectrum to businesses. To counter this, at least 16 major countries in the world are currently allocating their 5G frequencies directly to companies. For NCRTC/RRTS/metro networks that have already been applied for, and for telco networks where spectrum is not available across licensed services, there is an existing precedent of charging spectrum according to the area used as a percentage of the total licensed area. there is. area. The same applies to frequencies allocated to private companies. There are many questions surrounding the issue of private 5G in India. Have you conducted a public 5G, 4G, 3G or 2G demand study?Is it a worldwide standard to conduct a private his 5G demand study?

Since each company’s case is unique and each company’s requirements are narrowly localized, why is demand research needed here? Different industries have completely different requirements. As companies become more globally competitive through private 5G, will voice and data traffic to public 5G networks also surge, benefiting carriers? Aren’t carrier licenses non-exclusive? Is it therefore entirely appropriate to introduce competition through private 5G with different contract terms?Each case is unique and involves the use of non-conflicting spectrum, so why is an allocation study conducted? Is it necessary? Might these costly delays in themselves undermine good efforts? These and several other important questions remain unanswered. India needs to wake up and not stop until it is on par with its global peers in Industry 4.0 through private 5G/LTE.

Leverage research findings by Neha Hathiari

TV Ramachandran, Honorary Fellow of IET (London) and Chairman, Broadband India Forum.views are personal