Bridging India's digital horizon: A deep dive into 5G and Fixed Wireless Access with Ericsson India head Nitin Bansal

India's voyage into the realm of 5G has been extraordinary. In just 18 months, the nation has emerged as a global frontrunner in 5G proliferation, with services spanning 738 districts. Indian telcos' concerted efforts, deploying over 4.25 lakh Base Transceiver Stations (BTS), have propelled India into the top 15 markets globally for 5G media download speeds, as affirmed by Ookla.

Ericsson's latest Mobility Report highlights India's voracious appetite for data, averaging 31GB per smartphone per month by 2023. Projections indicate that 5G subscriptions will surge to 68% within five years, with data traffic per smartphone reaching 75GB per month by 2029.

Beyond speed, 5G heralds economic revitalisation, fostering innovation and growth through use cases like Enhanced Mobile Broadband (eMBB) and FWA. FWA, particularly, bridges digital divides by providing reliable, high-speed internet to underserved areas cost-effectively.

Globally, FWA deployment and spectrum strategies offer valuable lessons. From Norway's District Development model to Oman's FWA subscriber surge, nations leverage FWA for connectivity, transcending barriers and fostering prosperity. India's upcoming spectrum auctions in June 2024 beckon telcos to seize connectivity opportunities across diverse frequency bands.

As India strides towards a connected future, the convergence of 5G and FWA promises unparalleled innovation, inclusivity, and prosperity. Here's a conversation with Nitin Bansal, Head of Ericsson India and Head of Network Solutions, Southeast Asia, Oceania & India around how India is poised to redefine telecommunications, paving the path for a brighter, more connected tomorrow.

PD: How has been the 5G proliferation in India? What are the data consumption trends and how 5G is going to grow in the market? What are the 5G use cases in India?

Nitin Bansal: India has witnessed the fastest 5G proliferation in the world within 18 months of its launch with services currently live across 738 districts. Indian telcos have been deploying the next-generation technology across the country with around 4.25 lakh BTS already installed. India is now part of the top 15 markets globally with the fastest reported 5G media download speeds as per Ookla. The latest Ericsson Mobility Report indicates that India has the highest Data traffic per smartphone at 31GB/month at the end of 2023.

The latest Ericsson Mobility Report indicates that 5G will represent around 68% of mobile subscriptions in the next five years. The report further highlights that the average data traffic per smartphone in India is expected to reach around 75 GB per month by 2029.

5G is a platform for innovation and is set to unlock the next phase of economic growth for the nation. The initial use cases like eMBB and FWA will address the fibre gap in the country and improve consumers' mobile data experiences. Apart from these, other 5G use cases that are coming up in the consumer segment include AR VR shopping, cloud gaming, and 360-degree live streaming amongst others.

PD: FWA being one of the early use cases, how do you see its criticality in bridging the digital divide?

Nitin Bansal: Given the low fibre penetration in India, FWA will play a significant role in providing reliable and high-speed internet connectivity to underserved areas thus, helping bridge the digital divide and improve digital inclusion in these areas. FWA eliminates the need for costly and time-consuming physical infrastructure such as fibre optic cables or copper lines. Instead, it utilises wireless technology to deliver broadband internet access. This makes it easier and more cost-effective to deploy in rural or remote regions where laying traditional cables may not be feasible.

According to Ericsson’s FWA handbook 2024 Insights, from 130 million at the end of 2023, FWA connections worldwide are projected to increase to 330 million by the end of 2029. This represents 18 per cent of all fixed broadband connections. Of the 330 million projected connections, close to 85 per cent are expected to be over 5G. JioFiber and Airtel Xstream Fibre are now being deployed in India, covering almost all the major cities and towns in the country. Recently, Bharti Airtel and Ericsson successfully demonstrated 5G FWA functionality on mmWave. Peak speeds of 4.7Gbps were achieved during the testing, demonstrating the applicability of mmWave for high network capacity requirements.

PD: How will FWA help Indian operators increase their ARPU?

Nitin Bansal: In India, ARPU has already increased with the 4G technology as it delivered quality of service- speed, reliability, and capacity which made customers willing to pay more. We see this continuing with 5G as well.

The fact that India has low broadband penetration presents CSPs with an opportunity to enhance their coverage with FWA since it allows for broadband expansion in rural areas, enhanced connectivity options (over DSL/fibre), cost-effective deployment (over wired networks), service bundling opportunities (voice calling, digital TV, or content streaming platforms), and can be leveraged by enterprises – all this showcases FWA’s potential to help increase ARPU for operators in India.

As per a recent Ericsson report ‘Capturing the 5G FWA opportunity: A household view’, 3 in 5 households in India today are buying FWA as a full replacement for previous connectivity used as the network satisfaction for 5G FWA is on par with fibre. The findings reveal that the main driver for choosing FWA is to get higher speed and that FWA outperforms wired solutions in areas of flexibility, customisation and ease of installation. Further, nearly 3 in 5 of interested households are prepared to increase their monthly connectivity payment to get 5G FWA.

According to industry estimates, revenue from fixed communication services in India is expected to grow at a rate of 2.9% compounded annually, to $13.2 billion 2028 from $11.5 billion in 2023, primarily driven by fixed broadband services.

PD: How is FWA deployment going on in other geographies across the world?

Nitin Bansal: Governments across the globe are fuelling connectivity and broadband rollouts through various programs and subsidies, as there is a clear link between increased broadband penetration and economic growth. For example, Norway has implemented a unique model to foster FWA deployment as part of its latest 5G spectrum auction. The District Development model was launched in conjunction with the 2.6GHz and 3.6GHz spectrum auction, where operators could apply for spectrum auction discounts for providing 100/10Mbps DL/UL connectivity to 62,000 premises (including homes, businesses, and schools) up to NOK 560 m.

In Oman, FWA subscribers have surged fourfold since the deployment of 5G in 2020, with 82 per cent of them now leveraging 5G capabilities. Despite robust fibre infrastructure in Oman, Bahrain, and Qatar, operators are pulling in users to FWA networks by offering complementary packages.

According to an Ericsson FWA study, a belief that 5G network performance is on par with fibre is motivating households that have tried, tested and proven the benefits of 5G FWA to opt for it as their main connectivity, with 7 in 10 purchasing 5G FWA as a full replacement for their previous means of connectivity.

The number of service providers offering Fixed Wireless Access (FWA) over 5G is growing in all regions, creating global economies of scale. It is currently the largest 5G use case after mobile broadband in terms of uptake, around 60% (92 out of 158, February 2024) of Ericsson 5G live networks with commercial 5G FWA offerings representing an estimated 20-25 per cent of recent revenue growth for service providers and is projected to reach USD 75bn in service provider revenues by 2029 (Ericsson, November 2023). The availability of speed-based tariff plans is increasingly popular and enables service providers to fully bring out the value of 5G FWA. About 30 per cent of FWA service providers now offer speed-based tariff plans, up from 25 per cent a year ago.

PD: Fiber footprint remains a challenge in India. Do you think the E&V band can bridge the gap?

Nitin Bansal: India faces challenges due to its inadequate fibre connectivity. Allowing Indian telecom businesses access to the E-band (71-76 GHz and 81-86 GHz) and V-band (57-64 GHz) frequencies appears to be a strong way to alleviate congestion in the transport network and improve customer satisfaction. With these bands, data can be transmitted at extremely fast speeds—up to 1,000 megabits per second.

For high-capacity backhaul and last-mile connection, the E and V bands can serve as reliable substitutes, particularly in areas where establishing traditional fibre infrastructure is challenging and prohibitively expensive. With the potential to deliver gigabit-level speeds, these bands are well-positioned to satisfy India's growing need for data services. Telecom companies can develop their networks efficiently by using these spectrum bands, catering to densely populated urban areas as well as distant locations that have been hindered by infrastructure. By bridging connectivity gaps, this method helps to eliminate access disparities to communication services.

PD: With the upcoming spectrum auctions, what bands should telcos buy to offer seamless connectivity across the country?

Nitin Bansal: It is anticipated that the upcoming spectrum auction in June 2024 will accelerate the 5G rollout to every corner of the country. With the DoT announcing 8 bands in auction i.e., 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands (link), acquiring spectrum across these bands will ensure seamless connectivity nationwide. These frequency bands encompass a wide range suitable for different purposes, from providing widespread coverage in rural areas to supporting high-speed data services in urban regions. By acquiring spectrum across these bands, telcos can leverage the diversity of frequencies to optimise their network performance, enhance capacity, and meet the growing demands for connectivity and data services across the country.