Expectedly, a large proportion of the user base is the younger audience, for whom technology is a big attraction. Satish Meena, an independent technology analyst, points out that a quarter of all smartphones currently used in India are 5G compatible.
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The interesting part is how the shift to 5G in India has quietly taken place at the consumer’s end. While the purchased spectrum is sufficient for coverage across the country, achievement of complete coverage is expected to take a couple of years,” says a recent report by rating and research firm CareEdge.
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“The government expects spectrum allocation to conclude by the second week of August 2022 and the roll-out of 5G services to begin from October 2022. The immediate outgo was the first instalment, which was paid within 10 days of the auction concluding. “Yes, debt will increase but with the payment terms relaxed or distributed over 20 years, the stress on cash flow may not be material,” points out Dalal. “Their fibre infrastructure coupled with spectrum can place them in a very strong position.”Ī major concern has been the debt levels that the telcos are taking on at a time when tariffs in India are amongst the lowest in the world. The 5G option will also help the company monetise the digital broadcasting rights for the showpiece Indian Premier League (IPL) cricket tournament that are with Viacom18-which is backed by Reliance. Over time, mobility will be a small part of their business,” says Choksey. “There is a story in creating an information highway or just upping the 5G game with dedicated bandwidth. For those looking at larger opportunities, like Reliance, it gives them a shot at being a larger infrastructure player. The Adani Group’s decision to buy 5G spectrum (they have spent a relatively small sum of Rs 212 crore) is viewed as largely for captive use.
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With India’s mobility story already on a good wicket, the focus now shifts to the enterprise.