The upcoming year is poised to be pivotal for the Indian telecom industry, grappling with the imperative to realize returns on 5G investments while witnessing the growth of the satellite communication (satcom) ecosystem. The year could also accentuate India’s telecom duopoly, with a potential focus on rural connectivity by telecommunication companies.
5G Monetization: Year of FWA and Private Networks
As Reliance Jio and Bharti Airtel near completion of the pan-India 5G rollout, attention shifts to 5G monetization. The absence of compelling 5G use cases and the high cost of 5G smartphones have hindered revenue growth for telecom providers. The introduction of 5G-specific tariffs is anticipated soon. The enterprise segment is expected to play a crucial role in 5G monetization, particularly through private networks. However, the allocation of spectrum to enterprises remains a critical uncertainty. The fixed wireless access (FWA) segment is poised for intensified competition between the top two telcos, driving activity in the market.
Rural Connectivity?
A study by IAMAI and Kantar suggests that 56% of new telecom users from 2022 to 2025 will likely come from rural India. With more social media users in rural areas than in urban centers, service providers need to reevaluate their strategy for rural India. The expansion of 4G and 5G networks could finally bring quality connectivity to rural and remote regions.
How Do You Solve a Problem Like Vodafone Idea?
Vodafone Idea, facing substantial debt and struggling to attract investment, continues to grapple with financial challenges. With its diminishing profile, the industry is trending toward a duopoly, intensifying in the coming year. The lack of 5G vendor announcements further complicates Vodafone Idea’s prospects, making subscriber retention challenging amid the mainstream adoption of 5G services in 2024.
Will Jio Start Selling Its 5G Solution in 2024?
Jio’s plans for its 5G solution are eagerly awaited. Jio’s president, Matthew Oommen, has indicated the company’s readiness to collaborate globally for its 5G stack, set to be available as an integrated solution in 2024.
Growing Satellite Communications Ecosystem
The approval of India Space Policy 2023 and Eutelsat OneWeb’s authorization for satellite-based connectivity services in 2023 set the stage for significant developments in the satcom ecosystem. Players like JioSpaceFiber, SpaceX, and Amazon’s Project Kuiper are expected to secure licenses, potentially offering satellite-based services in 2024.
