Telcos Not Keen On Complete Rolling Out 5G Expansion
Telecom Minister Ashwini Vaishnaw inaugurated Nokia's 6G research laboratory
Telcos Still Busy In Strengthening 4G Networks
By Sanjay Singh
New Delhi, October 7: Even as the government is working on creating an ecosystem for 6G to further widen its digital reach and keeping pace with telcos globally, telecom companies may be holding off on 5G expansion to strengthen 4G.
Major telecom service providers in India appear to be prioritizing 4G expansion over 5G. Telcos are adopting a cautious approach to expanding their 5G network. Reports indicate low-capacity utilization and delayed monetization have slowed the rollout. Instead, Reliance Jio is placing greater emphasis on transitioning its 4G users to the more expensive, next-generation service. For now, telecom majors are prioritizing need-based 5G expansion over aggressive growth.
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According to a news report Reliance Jio’s operations indicate that the company’s 5G network utilization is estimated to be around 15 per cent. However, Jio disputes this figure, claiming it is significantly higher. The telecom giant, supported by network equipment suppliers such as Finland’s Nokia and Sweden’s Ericsson, has already rolled out its 5G network to cover over 90 per cent of India’s population, outpacing its competition in terms of both coverage and capacity.
Jio’s current strategy revolves around migrating its 4G users to the 5G platform. However, this transition will not be immediate, and further investment in 5G infrastructure will depend on increased demand and network utilization. The next phase of Jio’s 5G expansion could be delayed by several quarters until these factors improve.
Despite this, Jio has made significant headway, boasting 130 million 5G users out of its total 490 million mobile user-base in the first quarter of financial year 2024-25. Its 5G-based fixed wireless access (FWA) service, Jio AirFiber, has also gained traction, but experts suggest that Jio’s standalone 5G network still has considerable excess capacity.
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On the other hand, Bharti Airtel, is also concentrating on upgrading its 4G network, with the primary aim of transitioning its feature phone users to smartphones. Airtel has reportedly issued orders worth around $1 billion for 4G network equipment from global suppliers including Ericsson, Nokia, and Samsung, spread over the next three years. These contracts are expected to enhance Airtel’s revenue per user by improving smartphone penetration.
Like Jio, Airtel is also considering expansion of 5G network but remains focused on expanding its 4G coverage in the immediate future. The company is engaging with international suppliers to procure additional 5G network equipment, though monetisation of next-gen services remains a challenge without widespread use cases.
For Vodafone Idea’s 4G and 5G expansion, has its focus on expanding its 4G network while planning a gradual rollout of 5G. The financially-troubled company finalised a $3.6 billion deal with Nokia, Ericsson, and Samsung for network equipment last month. This deal forms part of a larger $6.6 billion capital expenditure plan aimed at boosting 4G population coverage from 1.03 billion to 1.2 billion and launching 5G services in key markets.
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For now, Vi’s priority remains the expansion of its 4G coverage, with 5G implementation likely to follow in the coming years as the company works to stabilise its financial position.
Meanwhile, state-run Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) are preparing to roll out 4G services after several delays. With the support of a government fund of Rs 6,000 crore, BSNL plans to install 100,000 new mobile towers to improve 4G coverage across the country, with 75,000 towers expected to be operational by Diwali.
MTNL has recently formalised a 10-year partnership with BSNL to introduce 4G services for its user base, marking a significant step forward in its efforts to enhance network connectivity. The decision to launch 4G services follows long-standing delays in BSNL and MTNL’s entry into the market, which has left the two public sector firms lagging behind private competitors.
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