“The spectrum valuation methods need to be tweaked a bit to get to the optimal pricing. The recommended 5G price is at least 4-6 times the international level.”
TV Ramachandran,
optimal pricing of spectrum. The spectrum valuation methods need to be tweaked a bit to get to the optimal pricing. The 5G prices recommended from the government and regulator are at least 4-6 times the international level. It is something that could make 5G appear as a poor show here. If it is so costly, how will it go to the other verticals? 5G will go outside of telecom. It will go to healthcare, education, manufacturing, R&D, logistics, etc. With that level of spread, you need affordability.
In Germany, there are about 90 licences given to public and private parties for private networks. There is a huge opportunity for 5G in private networks, as well. You can have a 5G network at AIIMS, or, at the Honda factory. Germany has shown the way, and the other European countries are also doing it. So, you need to relook at the spectrum, not only by way of valuation of the pricing. Here, we are all for an auction. If the reserve price is unrealistically high, then, the outcome is not good. We need to have a reasonable reserve price, and let the market discover the true value.
The quantum of spectrum is also important. The spectrum being provided in India is very low, probably, less than half. We will not be able to realise the benefits of 5G unless we give away even more spectrum. With the right pricing and the right quantity of spectrum, we are very confident that India can be among the leaders, as we have done with the mobile. We can do it in 5G.
Gupta said that tomorro’’s networks can be softwaredefined. If that is the case, can we do something to define a leading position for India?
According to Gaurav Basra, In Germany, as an enterprise, you can simply walk into a post office and apply for spectrum, which you can get for Euro 300. That is one example of how easy it is for an enterprise to get spectrum for private 5G network.
The new networks will be software-defined. India has an edge. You will see fully made in India networks. A typical 5G network will have semiconductors, hardware, software and system integration. In software, India is a global leader. There are strong companies in system integration. There is lot of talent in semiconductor design in India, where a lot of chips are being designed for global companies.
India has a very strong edge in at least three out of four areas. We are confident that new types of players will emerge. We will also see lot of effort being made in semiconductor design. Dominance of Indian players in the networks of tomorrow should happen.
For the future agenda for a Self-Reliant India, there should be programs dedicated to each one of these ecosystems. The models are very well understood. We need focused program in software, system integration and semiconductors. The entire stack should be a Made in India stack. We have the capabilities.
TV Ramachandran added that India can get into every aspect of this value chain. We have the skills, and probably, some honing is required. We have number of startups who have fantastic potential. The government should also do something to help the economy of the industry. Telecom is the backbone. Telecom should be looked at as a generator of wide spread of economic benefits. When that is done, we can be leaders. Some countries are already developing 6G. India should also start some research work on standards. 6G is expected to materialize somewhere around the early 2030s. India can be a front-runner in 6G. We must improve the economic health of the sector. That’s when the benefits will start flowing.
The discussion highlighted the present situation of 5G network, the kind of challenges that exist before the telecom industry today and their impact on the society and economy. Instances were given from the West to show how the West was solving these challenges. Suggestions were also made about how the industry can contribute to help India move forward. Overall, the discussion set the roadmap for the future.
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