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Tuesday, November 12, 2024

Private 5G Networks Set for Growth Next Year as Major Use Case: Nokia

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In Short:

Nokia’s executive, Prashant Malkani, highlighted that private 5G networks will significantly impact India’s telecom sector. The company is working with industries like ports and manufacturing to implement these networks for better internal operations. Additionally, fixed wireless access (FWA) is gaining traction, providing high-speed broadband where fiber isn’t available. Experts predict substantial growth in FWA subscriptions in India over the coming years.


Private 5G Networks: A Key Development in Telecom

The telecom industry is poised for a significant transformation, with private 5G networks emerging as a major use case, according to Nokia‘s senior executive, Prashant Ramesh Malkani, Head of Network Infrastructure Sales – India. In an interview with ETTelecom, Malkani highlighted the global trend of implementing private LTE networks across various sectors, such as mining, industry, and manufacturing.

Collaborations in India

In India, Nokia has commenced collaborations with several companies in the ports, mining, and manufacturing sectors to establish private LTE and 5G networks. This initiative aims to empower these organizations to manage their operations internally through private LTE technology.

Future Projections

Malkani indicated that discussions with service provider customers are ongoing, emphasizing the enterprise teams’ engagement with end customers. He expressed optimism that the ports sector would be the first to witness 5G use cases materializing by next year, with expectations for several robust private LTE networks by the end of 2024.

FWA Adoption and Growth

While the Indian telecom industry faces challenges in monetizing 5G, fixed wireless access (FWA) is gaining traction. Malkani noted, “FWA is being deployed across the country where fiber cannot reach, providing users with a high-speed home broadband experience. This is largely enabled by the rapid rollout of 5G technology in India.” He predicts that FWA will be the primary 5G use case that has already commenced and will continue to grow over the next 18 months.

Market Opportunities for Telecom Players

Experts assert that the high bandwidth and low latency of 5G will facilitate a multitude of applications in the enterprise segment, thereby unlocking sustainable revenue opportunities for telecom companies. The expansion of 5G FWA may initiate the monetization journey for these players.

Both Bharti Airtel and Reliance Jio are heavily investing in the FWA segment, recognizing the immense potential in a market where home broadband penetration remains under 10% in India. According to Counterpoint Research, FWA broadband subscriptions are projected to reach 462 million by 2030, with the majority of growth stemming from high-speed 5G-based FWA connections. Nevertheless, 4G LTE technology will continue to play a pivotal role in connection sources across developing countries until 2024.

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