Why 5G is the next headache for

some of India's richest

businessmen

Operators may soon decide how much more pain they can endure for a high-speed
wireless network that can offer better user experience.
After racking up $59 billion of net debt to survive a brutal war in the world’s second-
biggest phone-services market, some of India’s billionaires are bracing for more as their
next battle looms: 5G.
India seeks to raise $84 billion this year from a sale of airwaves -- most of it for the
latest technology tipped to revolutionize connectivity -- posing a conundrum for the
carriers controlled by tycoons including Mukesh Ambani, Asia’s wealthiest man.
Investment would mean more borrowings, but the reward could be revenue streams
never seen before.

Operators may soon decide how much more pain they can endure for a high-speed
wireless network that can offer better user experience in streaming, gaming and
entertainment in a market where Netflix Inc. to Amazon.com Inc. are making inroads.
With applications ranging from manufacturing to education and health care, 5G could be
the catalyst for India’s digital economy that has the potential to reach $1 trillion by 2025,
according to a report by Deloitte.

‘Competitive Parity’
“Any player missing on the 5G service offering is likely to see erosion of market share,”
said Alok Shende, a Mumbai-based principal analyst for telecom at Ascentius Insights.
“There’s all the more case for maintaining competitive parity to remain in the game.
Offering a forward path to customers is important.”
Bharti Airtel Ltd. and Vodafone Idea Ltd., the two biggest carriers, didn’t respond to
request for comments on their 5G plans, while Ambani’s Reliance Industries Ltd. said it
won’t comment on the spectrum auction.

While 5G offers potential in augmented reality, virtual reality, connected cars,

autonomous drones, smart homes and cities, the real promise for a country like India lies
in rural areas, said Prashant Singhal, global head of telecommunications at Ernst &
Young.
The technology could address some of the basic challenges due to lack of infrastructure
in health care and education. For instance, an experienced surgeon in a major urban
hospital can advise an in-theater doctor in a small town to perform a surgery over a real-
time 5G connection or a holographic image of a teacher could be beamed to a classroom
in a village, he said.
Most of Asia’s largest wireless carriers are in the process testing 5G networks, with
plans to introduce them commercially in 2020.
Business Standard