In Short:
Indian telecom operators are facing challenges in making money from 5G services, despite advancements in FWA and promising use cases in sectors like healthcare and education. The industry is struggling to find the key to success in monetizing 5G, with enterprises still skeptical about its impact. Experts believe that the monetization of 5G will gradually unfold over the next few years through various applications and collaborations with ecosystem partners.
Challenges in Monetizing 5G Services for Indian Telecom Operators
Indian telecom operators are facing challenges in monetizing 5G services, despite advancements in Fixed Wireless Access (FWA) service and potential use cases in sectors like healthcare, education, and manufacturing.
Lack of Transformative Use Cases
While India achieved the fastest 5G rollout in history, transformative use cases for both mobile consumers and enterprises are yet to emerge, hindering monetization opportunities for telecom operators.
Enterprise Concerns and Consumer Demand
Enterprises are skeptical about the impact of 5G on efficiency and productivity, while consumers mainly experience high data speeds as the primary benefit. The potential for applications like IoT, smart cities, and Industry 4.0 exists, but collaboration with ecosystem partners is essential for revenue generation.
Progress in FWA Services
5G FWA services have shown promise, with telecom companies launching services in major metropolitan areas. However, significant progress and returns on investment are expected to take time.
Future Monetization Strategies
Experts anticipate gradual monetization of 5G over the next few years through diverse applications. The combination of 5G, cloud, IoT, and automation will create new use cases for revenue generation.
Industry Outlook and Investments
Top telecom incumbents like Reliance Jio and Bharti Airtel have completed pan-India 5G rollouts, with over 100 million unique 5G users. As 5G technology matures and consumer demand grows, the industry will realize returns on investments.
Future Opportunities
With 1.6 billion 5G connections at the end of 2023 and expectations to rise to 5.5 billion by 2030, the industry needs to invest in network infrastructure, innovation, and adapt business models to capitalize on 5G technology.
The Long Road to 5G Monetization
The journey towards monetizing 5G services will be a marathon, requiring continuous investment and adaptation to seize the opportunities presented by evolving technology.
