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NEW DELHI: The Asia market will require nearly $270 billion in mobile infrastructure investment by 2030 to keep up with mobile data demands. Without contributions from the broader industry (read Over the Top (OTT) players), operators will struggle to meet these needs. The telecom market is big enough for everyone and collaboration is the key, says Mats Granryd , Director General, GSMA in an interview with Mansi Taneja.
Edited Excerpts: 5G monetization has been a challenge for the industry, not only in India, globally as well. So when do you see the industry getting returns on their investment? There are two things. One - 5G is really a standard, 5G radio, 5G core to 5G standalone to attract business.
If you want to download your Netflix movie in HD in five seconds instead of 25 seconds is not that big of a difference for you and me, but for businesses to be able to do ultra-low latency applications, advertising and huge amounts of IoT becomes really interesting. The monetization of 5G is predominant. Advt The second opportunity is Open Gateway, which represents a $300 million potential for the industry.
Open Gateway offers a great chance to engage software developers and hyperscalers, allowing them to access our network in a controlled way. This enables the development of authorized APIs and integration of the network, driving positive advancements in API-based network innovation. As a global business operating in places like India, Cambodia and Stockholm, you will have access to the same API everywhere.
Regardless of location, the application interface remains consistent. This is a huge advantage, but it only works within certain limits. After just 18 months, we now have 75% of all mobile connections using this technology.
That’s one key metric, but essentially, three-quarters of our global brands have already signed up for the GSMA Gateway. This, of course, will continue to expand. These two factors, I believe, really demonstrate the strength of our offering.
In India, 5G seems to have gained more traction primarily for consumers through fixed wireless access. While speaking with operators, many express that their primary focus for 5G is on consumer use, rather than enterprise or business applications. What’s your take on this? The industry is evolving, but it will take several more years before we see major changes.
As a result, the upcoming network upgrades are likely to be more incremental rather than a full generational leap. For instance, software updates are already underway. These updates will bring improvements, particularly in wireless access technologies.
In countries like India, fiber is widely used, though not universally. Fixed wireless access has already proven to be a reliable solution, as seen in markets like the US and Australia. In the Asia-Pacific region, we expect shifts in dynamics over the next five years and while not all the options are clear yet, they will emerge.
India, in particular, is poised to lead in data consumption, with average per-person usage expected to approach 30 gigabytes this year. Advt What are your views on the telecom industry’s demand for a fair share from OTT players? How is it justified? There’s now a growing recognition that the market is large enough for everyone and collaboration has become essential. The previous animosity between operators and other industries has diminished, as they now see the value of working together.
However, the issue of fair share remains a significant challenge. Data usage is increasing by 50% annually, with content providers accounting for about 80% of that traffic. When operators like Airtel or Jio are asked about network capacity, they often feel they are building infrastructure primarily to support companies like Netflix, which use a large portion of network resources without contributing to the costs.
This is seen as unfair because, while operators are heavily investing in network infrastructure, content providers are not sharing the financial burden. Due to fierce competition, telecom operators struggle to raise prices—many offer flat fees or unlimited data plans, a model also common in India. As a result, despite the increase in data consumption, operator revenues remain flat.
Looking ahead, Asia will require nearly $270 billion in mobile infrastructure investment by 2030 just to keep up with demand. Without contributions from the broader industry, operators will struggle to meet these needs. This presents an opportunity for industries and businesses to step up and support this transformation, as it's not sustainable for consumers alone to bear the cost.
This is why discussions about fair contributions from all stakeholders are becoming more urgent. What’s your take on the 6GHz spectrum? GSMA has been very active in talking to the Indian ministry but there is no final word on this. If the Indian government is not ready to allocate spectrum in the 6GHz range in a competitive way, it could limit opportunities.
The 6GHz band is extremely valuable, especially on the upper end of the mid-band spectrum.Currently, India already utilizes the 3.5GHz range, which is also part of the mid-band, but the 6GHz spectrum is crucial to keeping options open for future growth.
In addition to that, there's a millimeter-wave spectrum in the 25-26 GHz range, which can be useful for specific use cases. However, rather than focusing solely on licensing this spectrum for Wi-Fi or roaming, this high-frequency band can be a vital resource for addressing capacity needs and acting as a substitute when additional network capacity is required. Do you believe the Indian mobile industry is falling behind in terms of service quality? We encounter several issues daily, such as spam calls and network disruptions.
Although we have made significant progress in certain areas, there are still some fundamental challenges that need to be tackled. Your comments? Yes, rapid growth brings significant challenges, particularly in densely populated, high-demand areas. This puts immense pressure on spectrum availability and network capacity.
Operators in India, such as Airtel, Reliance Jio and Vodafone Idea, are tackling these issues directly. They are working to address challenges related to authentication and service reliability and I believe they are at the forefront of finding solutions.While operators are making progress, fraud remains a major concern and AI could play a pivotal role in addressing this.
Airtel and Reliance Jio are already developing an AI maturity roadmap to enhance security and build user trust. By Mansi Taneja , ETTelecom Published On Nov 14, 2024 at 08:19 AM IST Telegram Facebook Copy Link Be the first one to comment. Comment Now COMMENTS Comment Now Read Comment (1) All Comments By commenting, you agree to the Prohibited Content Policy Post By commenting, you agree to the Prohibited Content Policy Post Find this Comment Offensive? Choose your reason below and click on the submit button.
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