5G to generate $27 billion revenue potential for Indian telcos by 2026
Swedish communications technology firm Ericsson on Friday demonstrated the first-ever live 5G end-to-end demonstration in India using its 5G test bed and 5G New Radio (NR) delivering a throughput of 5.7 Gbps and ultra-low latency of 3 millisecond.
“We are strengthening our commitment to the Indian market by pioneering the first live 5G demonstration in the country. The 5G technology showcase has been organised in the direction of creating a robust 5G eco system in the country even as the Government plans to have 5G network roll outs by 2020. 5G research and development is natural for Ericsson thanks to our innovation, R&D focus, technology leadership and thought leadership,” said Nunzio Mirtillo, Head of Market Area – SE Asia, Oceania and India, Ericsson.
The 5G technology exhibition at the Ericsson Connect 2017 featured several 5G use cases and live demonstration of essential technologies on the road to 5G like Gigabit LTE (1 GBPS download speeds) and License Assisted Access (LAA) technology.
The LAA live demo showcased how this technology can influence wireless network resources using higher frequency bands on a small cell architecture.
Other technology innovations presented in the showcase included advancements in Radio Network Evolution, 5G Ready Transport and Network Slicing. Ericsson’s new 5G platform comprises the 5G core, radio and transport portfolios, with digital support systems, transformation services and security.
“5G will bring new level of performance and characteristics to the telecom networks, enabling new services and creating new ecosystems. New revenue streams will open for operators. 5G has the potential to enable 43 per cent incremental revenue opportunity for the Indian operators by 2026,” added Nitin Bansal, Managing Director, Ericsson India.
According to the Ericsson 5G business report, 5G technology will enable a $27.3 billion revenue potential for the Indian telecom operators by 2026. This will be besides the revenue generated from traditional services, which is expected to grow up to $63 billion by 2026.
“We have MoUs (agreements) with 36 operators globally. In India, we have recently tied up with Bharti Airtel for 5G technology,” said Mirtillo. However, he did not divulge any financial details about the partnership.
Ericsson, who is already a vendor to Bharti Airtel in areas like managed services and 4G will work with Bharti Airtel on creating a planned roadmap for evolution of the network to the next-gen 5G technology.
“The largest opportunity will be seen in sectors like manufacturing, energy and utilities followed by public safety and health sectors,” a report by Ericsson said.
“5G is expected to play a major role in digitalization of industries. 5G will bring new level of performance and characteristics to the telecom networks enabling new services and creating new ecosystems. New revenue streams will open for operators as they go beyond being Connectivity and Infrastructure providers to become service enablers and service creators,” Nitin Bansal, managing director of Ericsson India, told.
The report noted that agriculture will open up revenue opportunities up to $400 million for the telecom operators. 5G applications will be in areas such as field monitoring and mapping, livestock routing and monitoring, on-field applications, and related services.
Further, the Indian retail sector will create potential 5G-enabled revenue oppurtunity of up to $1.15 billion by 2026, the report added.
Source: Business Standard