Improve ARPU, Improve Financial Health of Telecom Sector, says Akhil Gupta, Bharti Enterprises

It is the duty of all stakeholders that we ensure that the ARPU which is currently the lowest in the world moves to at least 300 rupees over the next one to one to one and a half years.

Voice&Data recently concluded the fourth edition of its 5G conference under the flagship brand Telecom Leadership Forum. The theme of this year’s TLF 5G conference was “5G and the Future of Mobile Data”.

Akhil Gupta, Vice Chairman, Bharti Enterprises, spoke at the inaugural session of the conference on the theme New Age, New Needs Demand New Approaches.

"I am really pleased that finally, 5G is here", said Mr. Gupta. He mentioned, a few years ago at Barcelona GSMA (MWC) conference years before the Covid pandemic, when the 5G technology was in its fledgling stages. “It seemed as if 5G not only arrived but was done and dusted. That was very clearly the mood at that time. But like every other new technology, an evolution of new technology like 5G does take time. And it's so good that at least in India, it's going to be a reality.” 5G is indeed our new reality with two of the country’s main operators having already announced their plans and Indian metros to see 5G in the coming month. Over the next two years, 5G will have achieved deep penetration in the country. While 5G is expected to be transformational, Mr Gupta said that, “it will be a very important tool in the quest for digitization which India is looking for.”

5G Use Cases – An Industry Point of View

The telecom industry has clearly supply-led demand. As a result, there are some really good use cases that can bring huge revenue to telecom companies. Mr Gupta went on to list some of them.

Mobility: The first and foremost use case is mobility as apps that require higher speeds appear, or as gaming becomes complicated. Metaverse too, though apprehensions exist if a higher version of 5G may be needed for it. Still, it seems possible to accommodate Metaverse on 5G platforms.

Fixed Wireless Broadband: In a country like India, connecting everyone to fiber is physically and economically impossible. The only way to provide reasonably decent speeds is through 5G. “Not just for India, but for continents like Africa, where we operate in 14 countries. I think we are seriously looking at FWP,” said Mr Gupta.

Private Networks: “With the ability to slice the spectrum. I think private networks will become a big business case, in the enterprise segment. And it's my belief that instead of the private companies putting up the network themselves, they will be better served by the operators putting up the network for them,” he said.

5G Handsets: According to Mr Gupta, while 5G handsets account for just under 10% of all smartphones, what is heartening is that the current level of shipment of 5G has already reached 22%. And according to projections, within a year 40% of all smartphones shipped will be 5G. It is also expected that 5G handset availability will keep in tandem with the network rollouts.

Infrastructure: The area of infrastructure is a major concern voiced Mr Gupta. “5G being on 3.5 gigahertz and thereafter on millimeter band, the propagation is so bad that it will require a huge number of microsites and small cells. And those have got to be necessarily connected on fiber, because there will be no space. For microwave. This is a very big task, because currently, only 30% of the towers are on fiber. It's a big challenge.” Two factors play a vital role here. “Now, it is roughly estimated that within the next two years, we will need anywhere between one lakh to one 150,000 crores, for creating this new infrastructure, which will enable 5G networks. Fortunately, I can confirm on behalf of all the members of the digital infrastructure providers Association, we are absolutely ready and capable of putting in those investments. In fact, our members are very excited about the opportunity to put this investment. The other aspect in this quest is of course, the right of way, and availability of approvals. And I'm very hopeful that the recent steps taken by the government, the DoD in issuing the new RoW rules in consultation with the states and in particular extension of Gati Shakti and establishment of Gati Shakti portal should ease these,” Mr Gupta said.

Financial Health of Sector: Mr Gupta pointed out that while the telecom sector appears as if it is booming, especially with 5G rollouts, return on capital employed is at its lowest currently. “. So I think it is the duty of all stakeholders that we ensure that the ARPU which is currently the lowest in the world moves to at least 300 rupees over the next one to one to one and a half years. If we are to look for a decent ROC in this industry. I think this piece will be vital. If we want to fulfil the dream of digitization of the country. I have no doubt that together all the stakeholders with the support of TRAI and DoT will overcome all these problems and put up some real robust 5G networks over the next two years, not just in the tier one tier two cities, but deep down into the country because all technological developments need the bedrock of a solid telecom network.”