5G is here

AS India embraces the fifth-generation (5G) mobile network technology, there’s a discernible buzz that faster and more reliable cellular services would be the new normal in the near future. The enthusiasm over connection speeds 10 times faster than 4G is articulated in a recent consumer survey. Almost 90 per cent said they intended to upgrade to the new network, notwithstanding the likely higher costs and adoption disruptions the telecom giants could face. Despite being hindered by 4G network bottlenecks, mobile users in India are among the world’s biggest data consumers. The switchover to 5G is expected to open a world of opportunities for various sectors of the economy, but a digital transformation would require major capital and infrastructure augmentation.

Strengthening cyber security remains a major concern. Suitable technological upgrades, increasing the fibre penetration and managing the high network expenditure are among the other challenges, as is pricing. The upgrade to 4G from 2G and 3G got a push only after a new entrant’s tariff war led to heavy data offerings. A faster transition to 5G hinges on a low price differential with 4G. However, considering the stiff expenditure involved in the augmentation processes, premium pricing could well be the only prescription for an effective and successful rollout of 5G services. India, at present, ranks at the bottom of the heap in terms of Internet speed. In a situation where the 4G network’s performance entails regular complaints, the telecom operators have an uphill task to deliver on the 5G promise.

The Union government’s production-linked incentive scheme for telecom and 5G equipment has set in motion the process of change. Sales of 5G-enabled smartphones are already on a par with those of 4G smartphones. Phasing out the earlier generation technologies could still take 10 years or even more. Amid the upbeat outlook, it becomes incumbent upon the telecom operators to present a realistic picture to the consumers, and not sell fancy dreams they are not in a position, for now, to live up to.