The 5G tug of war

DoT is in a hurry, but the industry should be given time

The department of telecommunications (DoT) is unhappy with mobile phone operators for pushing back 5G auctions, when the government is trying hard to ensure that India doesn’t trail the world on the commercial roll-out of the new technology, like it did with 3G and 4G. India has been pushing for a roll-out of 5G telecom services ahead of the International Telecommunication Union (ITU) finalising the tech standards in 2019. The DoT’s ambition is laudable as telcos in India cannot ignore future technologies such as 5G at a time when the US, the UK, China, Singapore and others are planning pilots in the next few months. For instance, recently, M1 and Huawei announced that they would conduct a live demonstration of a 360-degree virtual reality content broadcast soon, using 5G capabilities. There have already been trials by SingTel and StarHub. In the UK, Ofcom started the process of selling 5G packages earlier this year and the first big trial, in East London, is expected this autumn. The US and China are, meanwhile, locked in a race as to who will do it first. According to a report released by the CTIA, a trade association for the US wireless industry, China is most prepared to launch the next generation of super-fast wireless technology, South Korea is second, and the US third.

In India, 5G mobile services, which could be used for anything from powering self-driving cars to an effective roll-out of smart cities, are expected to create a more than $27-billion business opportunity by 2026, according to an Ericsson study. That’s an opportunity that should not be missed. But the DoT should be realistic. Without adequate preparation, the promise of 5G — ultra high-speed mobile broadband and efficient internet of things deployment — may not be realised. In fact, the Cellular Operators Association of India (COAI), representing a large number of telecom firms including Airtel, Vodafone and Idea, has asked for a deferment of the 5G spectrum auction till at least the middle of next year. Any high-priced large-scale auction, critical for the success of 5G, may not get an overwhelming response from the industry this year because of the financial stress it is in. 

It is true that India may lose the 5G first-runner advantage if the spectrum auction is delayed, but such a step may be in the best interests of the industry at a time when most top telcos are bleeding. If there is an auction this year, telcos would be forced to participate to stay competitive. But they can ill afford any extravaganza, especially as their current networks are crying for significant investments. As it is, the existing 2G, 3G and 4G networks of most incumbent operators provide less than satisfactory services. Telcos need to urgently address the issue of call drops, and enhance data connectivity. Backers of 5G say if the government decides to defer the spectrum auction, 5G roll-out by 2020 is unlikely to happen in the country as the Lok Sabha elections, slated for 2019, would possibly delay the process even more. That may well be true, but it is perhaps better late than never. The telecom operators need to put their house and the current networks in order first before leapfrogging technology and trying to aggressively bid for 5G spectrum.