Date: 07/10/2022

Relevance: GS-3: Infrastructure; Awareness in the fields of IT.

Key Phrases: 5G services, Telecom operators, Internet of Things, Mobile communication, Reliable communication, Ultra-low latency, Long Term Evolution, Affordable phones, Cost of subscribing, Commercial use, Duopoly, Levies and taxes, AGR payments.

Why in News?

• 5G must be inclusive to realise its full potential. The biggest challenge to the mass adoption of 5G services is the availability of affordable phones.

Context:

• The Centre should be commended for enabling telecom operators to launch 5G services within just two months of auctioning spectrum.
• However, now that the launch euphoria is over, it is time for a reality check on the challenges that could come in the way of making 5G available to the masses.
• While there is an expectation that 5G technology will enable the delivery of critical services such as digital learning, tele-surgery and the Internet of Things over a mobile network with unprecedented efficiency, there are some major issues that need to be addressed if the Centre wants the benefits of this technology to reach every citizen.

What is 5G technology?

• 5G stands for 5th Generation mobile communication technology.
• It is next generation of mobile broadband that will eventually replace 4G LTE connection.
• It is the next-generation cellular technology that will provide
  • Faster and more reliable communication.
  • Communication with ultra-low latency.
• It is the latest upgrade to the LTE (Long Term Evolution) mobile broadband network.

Challenge to the mass adoption of 5G services:

• Availability of affordable phones:
  • The biggest challenge to the mass adoption of 5G services is the availability of affordable phones.
  • The cheapest 5G-enabled phone is priced at ₹10,000 which makes it beyond the means of the majority of the population.
  • The lack of a cheap handset had also slowed down the adoption of 4G services as many consumers found it tough to migrate from their 2G voice-only services to 4G. As a result, there are still over 300 million 2G subscribers in the country.
  • One way of overcoming this issue is for the Centre to use the money lying idle in the Universal Services Obligation Fund to offer direct subsidies to consumers to buy 5G devices.
• Cost of subscribing 5G services:
  • Even though some operators have said that they will not be charging a higher tariff for 5G, the reality is that the telecom companies are under huge financial pressure to increase their average revenue per user from ₹180 at present to ₹250 a month.
  • More can be done to reduce regulatory levies and taxes so that the operators don’t have to increase tariffs.
• Lack of use cases:
  • The other important aspect is the lack of use cases. Globally and in India there are a number of pilots being done in different areas, including telemedicine, warehouse management, and surveillance.
  • The DoT is spearheading an inter-ministerial committee to explore the incorporation of the benefits of 5G technology into public infrastructure that includes a private network for police communications, incorporation in hazardous applications such as mining, and also in public waterworks systems for agriculture.
  • But there is no clarity on when these services will be ready for commercial use. This needs to be taken up on a mission mode. This will ensure that telecom operators have a separate revenue stream to recover their investments.
• Duopoly in the telecom sector
  • An area of concern is the emergence of a duopoly in the telecom sector. The Centre has made provisions to help financially stressed operators under the Telecom Bill but there is no clarity on many of these aspects.

Duopoly in the telecom sector

• India’s telecom market is on the brink of becoming a duopoly with two of the four major operators struggling to stay afloat.
• Bharat Sanchar Nigam Ltd (market share of 10 per cent in the wireless segment, including MTNL) is in such a dire situation that it cannot even pay salaries to its employees, Vodafone Idea (market share of about 25 per cent but falling rapidly) is fast running out of cash, raising concerns about its survival.
• Affordable telecom services are crucial to ensure equitable access to data — online educational resources, general information, health services, consumer goods and other services.
• Now, consumers have limited options with Reliance Jio and Airtel cornering two-thirds (a rising figure) of the telecom market.
• In this context, the Centre must take four steps to ensure that the telecom market does not become a duopoly.
  • First, bring down levies and taxes on telecom companies. Telecom companies pay nearly 30 per cent of their revenues to the Centre in addition to the upfront spectrum fees after each round of auction. The concept of revenue share, which was introduced in 1999 when the spectrum was given on subscriber-based criteria, should be done away with.
  • Second, appoint a credible, independent management to run BSNL. The once-dominant public sector company has been reduced to a mere footnote, thanks to years of bureaucratic inefficiencies in decision making.
  • Third, all operators should be given a one-year moratorium on AGR payments (adjusted gross revenue) so that cash generated from operations can be invested back into rolling out much-needed broadband infrastructure.
  • Finally, reduce the spectrum price for the next round of auction to keep services affordable.
• This would ensure that the consumers will benefit from competitive intensity in the market.

Way Forward:

• From super-ultra-fast broadband, to smart and autonomous cars, to enormous networks of Internet of Things (IoT), 5G could be the catalyst that brings about a much smarter and more connected planet.
• There is no doubt that the fifth-generation wireless technology will bring massive improvements in consumer broadband services and industrial applications with the potential to drastically alter societies through its wider impact.
• It is important to ensure that the industry is well-positioned to put the infrastructure in place to bring the benefits of this new technology to consumers.
• Finally, the telecom regulator must review the quality of service parameters. Consumers are still grappling with basic network issues like voice call drops and interrupted data services. The focus on 5G will have no meaning if this remains unchanged.

Source: The Hindu BL

Mains Question:

Q. What do you understand by 5G Technology and what are the challenges to the mass adoption of 5G services in India?