In Short:
The government official emphasized the need for sustainable development in the digital telecom network as activities shift to digital formats due to the expansion of bandwidth and the transition to 5G networks. It is crucial to make these services affordable and explore new revenue streams like advertising. Telecom operators need to find a balance between innovation and maintaining network capacity to ensure ongoing investments in the networks.
Digital Telecom Networks Must Ensure Sustainable Growth, Says Senior Government Official
With the expanding bandwidth and the ongoing transition to 5G networks, more activities are moving to digital formats. It is crucial to ensure sustainable development with these innovations, as emphasized by Manish Sinha, Member (Finance), Digital Communications Commission, during a Keynote Address at the ETTelecom’s virtual conference on World Telecom Day.
Focus on Affordability and Accessibility
Sinha highlighted the importance of making services on digital networks affordable to a larger population. Building economies of scale, maintaining reasonable tariffs, and identifying new revenue streams are essential steps to ensure the sustainability of these networks.
Balancing Revenue Streams
The concept of advertising revenue on digital networks is gaining prominence, and the debate revolves around whether operators should share in the revenue generated by content providers. Achieving a balance between revenue streams and ensuring adequate returns for telecom operators is crucial for sustaining these networks amidst evolving technology life cycles.
Challenges and Investments
Shortened technology life cycles present challenges in achieving quick returns and investing in the next generation of technology. Significant investments in 5G capacity and spectrum costs, combined with competition from satellite technology and unlicensed networks, have impacted telecom operators’ ability to secure returns. Furthermore, the rapid advancement of technology means that telecom operators must constantly upgrade their infrastructure to stay competitive, further increasing their investment burden. However, while these challenges may seem daunting, there are opportunities for growth and success in the telecommunications industry. For example, India achieves 99% 4G coverage, demonstrating the potential for significant returns on investment in the right market conditions. As technology continues to evolve, telecom operators will need to carefully assess the risks and benefits of investing in the next generation of technology to remain competitive in the market.
Ensuring Continued Returns on Investments
To sustain ongoing investments in networks, it is vital for telecom operators to receive returns on their investments. Balancing innovation with maintaining network capacity will enable greater utilization of digital platforms, leading to increased economic and informational activities.
