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Telecom industry grows by $12.5bn every 3 years with 5G, related innovations: Deloitte India-CII

Mumbai: India’s telecom industry is projected to grow at $12.5 billion every three years due to the rollout of 5G services and the resulting innovations.

A report by Deloitte India and CII projects that 5G will increase monthly average data usage per subscriber to 45.61 GB by 2027. Currently, Indian users are estimated to consume 17.94 GB of data per subscriber per month.

The monthly ARPU of the telecommunications industry is expected to grow by 15 to 25 percent over the next 12 to 18 months. It will continue to increase in the medium term in terms of the growth of 5G services as well as tariff increase.

Newer trends will emerge, like smartphones getting taller and slimmer and likely becoming more foldable or expandable. Demand for smartphones is expected to increase as internet usage increases; This demand is fueled by the need to adopt fintech, e-health and e-learning.

By 2026, India is expected to have one billion smartphone users. In contrast to the urban sector, which is expected to grow at a CAGR of 2.5 percent from 2021 to 2026, the rural sector is projected to drive this growth at a CAGR of six percent.

This would mean that digital experiences will transform traditional shopping behavior and focus on delivering enhanced customer experiences by combining the benefits of physical brick-and-mortar stores with immersive shopping platforms.

“Bharti has grown faster than Jio in major cities and A-countries, likely due to higher postpaid subscribers and better monetization of data usage,” ICICI Securities said in a note, analyzing financial data compiled by India’s Telecoms Regulatory Authority (Trai). .

According to the report, 90% of consumers will be looking for a digitally-enhanced shopping experience, be it at home, via mobile or in a physical location. This in turn is expected to encourage AR/VR (Augmented Reality/Virtual Reality). Technology market expected to reach USD 1.634 billion (Rs. 13,070 billion) by 2025.

Deloitte expects private network requirements in Indian industry to increase once the benefits of the shift are realized, which will ultimately solidify the B2B enterprise telco story.

Peeyush Vaish, Partner and Head of Telecoms Sector at Deloitte India, said: “With the right mindset and technological know-how, the Indian telecoms industry can leverage 5G to accelerate the country’s economic growth and resilience.”

5G is also expected to enable companies to act on rich datasets in real-time, providing greater transparency, insight and control over assets, products and services.

He added, “While the current outlook for the telecoms sector appears stable, telecoms companies need to rethink their strategies and keep up with new technologies and evolving markets.”

Aside from commercial benefits, 5G can also act as a growth driver for Industry 4.0 by facilitating the use of information and communication technology (ICT) in sectors such as manufacturing, education, healthcare, agriculture, finance and others.

One of the direct economic benefits comes from the efficiencies associated with operations, processing and communications; All of this will help reduce costs and improve margins.

The increasing demand for immersive content in various industrial sectors such as healthcare, EdTech, manufacturing and retail will require the high-speed 5G network as a driver for seamless connectivity within the ecosystem

The report added that current trends such as cloudification, orchestration and virtualization enable extremely agile and scalable networks. A typical broadband and cellular network consists of several passive infrastructure components that together form a complete ecosystem that forms the basis for all deployments in the telecommunications sector.

The approval of the Production Linked Incentive (PLI) programs is expected to improve investor sentiment, attract more investment to India, stimulate innovation and R&D (research and development) and reduce the sizeable imports of telecom equipment.



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