Documente Academic
Documente Profesional
Documente Cultură
Strategic Consulting
July 05, 2019
Group 8
PGP09125 Abhimanyu Sharma
PGP09224 Risha Agarwal
PGP09225 Ritu Singh
PGP09226 Sagar Rastogi
PGP09228 Sameet Ahzam Khan
PGP09237 Shreyans Jain
2 Which communication technology is on the radar? Its key technical and business
implications? .............................................................................................................................. 3
3 In what ways are the Telecom operators expected to approach it? Reimagine themselves?6
5 How could the Govt approach Spectrum pricing given the financial condition of the telecom
industry and uncertainties associated with use cases/business models/ROI? ............................ 9
6 How could Infra Sharing happen among operators so as to reduce Capex in their books? . 9
7 How could the Sector specific new services be developed and for which value add
applications? .............................................................................................................................10
8 Are Telcos likely to face “organizational” and “cultural” challenges in monetizing 5G? .......11
9 What could the business models be for Telcos for the 5G era?..........................................11
10 References .......................................................................................................................13
Executive Summary
Fifth generation technology (5G) is the next communication technology on the radar and is going to
replace the prevalent 4G LTE network. Apart from faster data speeds, 5G will change our ecosystem to a
“Hyper-Connected Society”. It will connect newer industries, from retail to education, transport to
entertainment, and more. It is also expected to play a very transformative role in major industries.
Though operators recognize the potential for 5G to transform aspects of the consumer and enterprise
experience, they also have concerns around identifying specific business models and how much scope
there is to monetize the new services that 5G will enable. Several countries are already leading the way
with early launch plans for 5G, some of which have already taken place, while others appear more willing
to be followers and allow the technology to mature.
5G technology has the potential for ushering a major societal transformation in India by enabling a rapid
expansion of the role of information technology across manufacturing, educational, healthcare,
agricultural, financial and social sectors. 5G will create new opportunities for operators with new revenue
streams and potential cost advantages. 5G, which is all set to succeed the 4G standard over the next few
years, offers an exponential improvement in functionality over 4G — it is 100 times faster and has 1,000
times more capacity.
Introduction
The next generation is here, the smart wireless 5G technology is here. It is evident that the full
technological potential of 5G will be realized over a five- to 10- year horizon due to the timing of the
relevant standards and the required scale of investment. Telecom companies around the world are poised
to invest tens of billions of dollars in 5G. This huge transition of the wireless technology requires a
significant departure from the way telecom companies have operated in the past. To capitalize this
transition successfully, the operators need to specify three elements: first, the services and use cases that
consumers, businesses, and public agencies will value; second, the optimal way to play to monetize and
create value; and third, the capabilities needed to succeed.
Which communication technology is on the radar? Its key
technical and business implications?
5G networks are digital cellular networks, in which the service area covered by providers is categorized
into small geographical areas called cells. Analog signals of sounds and images are digitized in the phone,
transformed by an analog to digital converter and sent as a stream of bits. All the 5G wireless devices in a
cell interact by radio waves with a local antenna array and low power automated transmitter and receiver
in the cell, over frequency carriers assigned by the transceiver from a shared pool of frequencies, which
are used again in geographically separated cells. The local antennas are connected with the phone
network and the Internet by a high bandwidth optical fiber or wireless backhaul connection.
5G networks will operate on three broad-spectrum bands, namely – low, mid and high band spectrums.
The low band spectrum is the sub-1 GHz spectrum, which provides great penetrative power, and speeds
generally max out at 100 Mbps. Sub-1GHz bands are suitable to support IoT services and extend mobile
broadband coverage from urban to suburban and rural areas. This is because the propagation properties
of the signal at these frequencies enable 5G to create vast coverage areas and deep in-building
penetration.
The mid-band spectrum is known for lower latency and faster coverage, but has lower penetrative power;
speeds top out at about 1 Gbps. There is a moderate amount of existing mobile broadband spectrum
identified with this range, which could be used for initial 5G deployments.
The high band spectrum also called the millimeter wave, is the cherry on top, with speeds going up to 10
Gbps and low latencies. This range can be allocated to mobile communications and thus enable enhanced
mobile broadband applications. The only drawback is the low coverage area that it can cater to.
Indian operators are currently investing heavily in their LTE networks; Jio has built a greenfield LTE
network over the last four years, while Bharti Airtel and Vodafone Idea are investing in adding coverage
and capacity to their LTE networks. All the operators are therefore deploying the most advanced versions
of LTE which should enable an easier and more cost-effective migration to 5G. Bharti Airtel and Jio are
deploying LTE Advanced, which uses carrier aggregation to increase data speeds. Vodafone Idea is
deploying massive MIMO in several cities while looking to increase ‘cloudification’ of the network core
and trialing software-defined networking (SDN) and network function virtualization (NFV) as it looks to
ready its network for 5G.
The Indian government is hoping to raise close to Rs 6 trillion from the 5G spectrum auction which will be
the biggest till date, but the telcos are of the opinion that the planned base price for the auction is set
too high. Different telecom operators are expected to approach strategically keeping in mind their existing
technological capabilities and finances available to them. Failing revenues and lack of killer use cases for
5G in India market most Indian Telecom operators are not fully prepared for 5G right now.
In the current scenario with the prices recommended by the telecom regulators, Jio is the only operator
in the market ready to buy the 5G spectrum. The company is also looking to make a 5G upgrade to make
the 4G redundant to other telcos like Airtel and Vodafone Idea and benefit any 4G-led data monetization.
This move can be seen a step to maintain the leadership of fast broadband technology and revenues. Jio’s
interest to early 5G upgrade compared to the competitors will lead to even greater and sustained market
share gains. They are also looking forward to launch NextGen wireless broadband technology by 2020,
3rd quarter. Currently, JioPhone and JioPhone 2 are available with 4G VoLTE. Once the network is fully
functional in India the company is also looking towards bringing a 5G support Jio phone once prices of 5G
devices come down, which might take years.
Bharti Airtel in contrast is looking to slash the price of some sub-GHz bands. Airtel is not very keen
towards the upcoming 5G spectrum sale. On the same boat with Airtel is Vodafone Idea (VIL), country’s
largest telecom operator by subscribers, who wants the sale to be pushed a little. Airtel and VIL are more
in favor of an upgrade from existing 4G LTE towards 4G LTE A Pro.
Bharti Airtel and VIL are raising around Rs 50,000 crore to bridge the gap with Jio in terms of 4G services
in the urban areas. This fund raise will not prove to be a good move for Jio, especially if they put all this
cash in 4G as this would lead to increase in subscribers by around 425 million for these two together.
According to Vodafone Idea, there is no need for 5G for IoT in 95% of use cases and that they use 2G, 3G
and 4g for their IoT solutions. Though 5G will be used in some select cases such as Virtual Reality (VR),
high definition gaming or remote surgery because these cases require lower latency and high throughput.
For these select cases some spectrum will be required but the general 5G services can be used by 2021-
22.
VIL has agreed with Ericsson to deploy its Cloud Packet Core which will enhance its network. Under the
deal, VIL will be benefited from the network applications of Ericsson and functions such as the virtual
Evolved Packet Gateway (vEPG), Service Aware Policy Controller (vSAPC) and Virtualization Infrastructure
(NFVi) solution which will enable fast introduction of the new services and also provide continuity of the
full service.
Airtel is planning to revise the mobile tariffs higher in the medium term to sustain the $8 billion initial
investments that it will make over the next 3-5 years in 5G rollouts and in expanding existing 4G networks.
Vodafone Idea as well as Bharti Airtel have begun talks with Samsung to supply equipment for their 4G
and 5G networks. These two telcos do not want to get stuck in the midst of two vendors namely Ericsson
and Nokia in case Huawei is banned from India from the 5G trials.
Bharti Airtel and Huawei have successfully conducted India’s first 5G network trial under a test
setup at Airtel’s network experience center in Manesar, Gurgaon, achieving a user throughput of
more than 3 Gbps. Bharti Airtel has signed a memorandum of understanding (MoU) with Nokia
and Ericsson to support the company in its preparations for 5G rollout.
Vodafone Idea in partnership with various OEMs such as Huawei and Ericsson have also
proposed 5G trials.
Samsung has already conducted 5G field trials in New Delhi in 2019. They are also working closely
with the Department of Telecommunication, Government of India. For the upcoming 5G trials,
Samsung is also likely to be one of Jio's partners .
BSNL has also signed a Memorandum of Understanding with Ciena to conduct field trials with
the goal of a commercial launch by 2020.
Ciena and BSNL intend to jointly evaluate fronthaul, midhaul and backhaul transport-based use
cases and scenarios to address resiliency requirements and latency concerns.
Value to end Customer: Combined with the manifold benefits of 5G, the technology opens the
way to a far superior experience for customers using 5G networks across all application types like
video calling, gaming, interactions with smart devices and more
New Revenue Streams: Features like 5G’s ultra-reliable low latency communications and massive
machine type communications, which involve sensor network and IoT, will enable Operators to
develop cutting edge applications to address multiple market segments. This opens up new
avenues for Operators to develop digital applications to address Industries 4.0, Smart Cities, Smart
homes, Healthcare, Utilities, Retail, Entertainment etc.
References
1. https://m.dailyhunt.in/news/india/english/trak+in-epaper-
trakin/reliance+jio+will+launch+5g+in+2020+4+things+you+need+to+know-newsid-
97859920
2. https://www.tomsguide.com/us/5g-release-date,review-5063.html
3. https://www.thehindu.com/news/national/on-5g-and-data-india-stands-with-developing-
world-not-us-japan-at-g20/article28207169.ece
4. https://www.techradar.com/news/the-perfect-stream-dream