Indian Telcos Will Spend $19.5 Billion On 5G Infrastructure By 2025 : GSMA

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Indian Telcos Will Spend $19.5 Billion On 5G Infrastructure By 2025 : GSMA
13 Sep 2022
min read

News Synopsis

According to a GSMA report, telecom carriers in India are expected to invest around $19.5 billion in the development of advanced infrastructure for 5G by 2025. According to the report, 5G could benefit the Indian economy by $455 billion between 2023 and 2040, or more than 0.6% of the GDP forecast for 2040, reflecting the large number of 5G use cases that could be implemented in India's important industries.

"5G benefits are expected to be realized in new applications in the manufacturing sector (representing 20 percent of the total benefit) as well as the retail, ICT, and agricultural sectors,"  according to the findings. However, while the Indian government has assigned two carriers in the E-band of 250 MHz each to address the current need for 5G rollouts, this may not be enough in the 5G era given the requirement for high-capacity backhaul to support use cases and increased data traffic.

"Clear policy guidelines on the allocation of backhaul spectrum are necessary,"  according to the report. In the country, 5G will be a key enabler of enterprise digital transformation processes in manufacturing, energy and utilities, banking, transportation, healthcare, sports, and retail.

"The consumer and enterprise segments both present significant opportunities for 5G services in India. However, further reforms are required to support the development of advanced telecom infrastructure is a fundamental driver for a digital society," the report titled "India: on the Road to a Digital Nation" stated.

There is still a significant digital divide in India, with the greatest barrier preventing large swaths of the population from participating in the digital economy and the social and economic benefits it can bring to their lives.

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