“There have been some experiments and some moves on standalone through slicing in some markets like the US and so on, but it is too small and too few and far between to make a meaningful difference to the overall monetization that was promised,” Vittal added.
Airtel 5G User Base
Airtel ended the quarter on September 30 with 167 million 5G users, with 5G sites handling over 40 percent of total network traffic. ARPU stood at Rs 256, the highest so far. Airtel’s 5G-based FWA has seen strong traction, with its customer base crossing 2.3 million.
Airtel Dual NSA + SA Mode
Airtel’s MD also shared an update that the company is in the process of transitioning its 5G networks towards 5G Advanced by introducing dual NSA (Non-Standalone Architecture) and SA (Standalone Architecture) mode. “We are now in the process of transitioning our 5G networks towards 5G advanced by introducing dual NSA plus SA mode and migrating our FWA users on the same. Today, our FWA customers across 13 circles are already experiencing our dual-mode 5G network with SA. For the mobile network, pilots are underway for the 5G dual mode in a couple of circles, and we plan to make it commercial in the coming months as the traffic on our 5G network grows.”
“Three to four years from now, you would see more and more frequency being refarmed to standalone and at some point non-standalone will just disappear there will just be standalone technology in the country on our networks,” Vittal said, responding to an analyst’s question on the 5G Standalone transition.
He elaborated:
“…Just to explain the standalone. Over a period of time, if you take a longer period of time, let us say over the next five or six years, as all of the 4G traffic shifts to 5G and more and more devices come in, we will be refarming band-by-band spectrum to move it to SA. This is a point that I made a few years ago. Now, as you do this transition, you need to operate some spectrum in non-standalone mode and some spectrum in standalone mode, because you are operating, what is called, a dual mode, this is a standard practice, it is standard in all markets. For example, you can see in the U.S. market, this is exactly what they are doing, even in China, this is exactly what they are doing, because you cannot refarm all of the spectrum immediately, right?
“At this point in time, when we say it is a dual mode, in 13 circles, we already have a live standalone network that is operating for fixed wireless access. One of the advantages that we are seeing on this is the fact that the time on technology that is spent is greater, because they do not sort of toggle between 4G and 5G, and that sort of frees up the networks. The second is there is a slight improvement in the uplink performance. These are the two things that we have seen, and as a consequence, these 13 circles will extend across the country for fixed wireless access. This is one part of it.
“The second part of it is, we also believe that we are now ready, given that 40 percent of the traffic that we carry is on 5G networks, to also start refarming some spectrum for standalone on mobile, and that gives all the capabilities of standalone, as you rightly mentioned. This is a work in process,” Vittal explained.
5G SA Software Upgrade
Responding to an analyst’s question from JP Morgan on whether 5G Standalone would increase capex, Vittal said there is no meaningful capex involved in 5G SA.
Question: “If I heard you correctly, there will be an increase in capex on 5G standalone, capex on home passes, as you are looking to accelerate that across CPEs and also an acceleration on the data center side, so, how does all of this layer into the overall capex guide for it to moderate in the medium term?”
Airtel: “On 5G standalone, there is really no meaningful capex, because it is all software-led, right? All our networks are capable of moving to Standalone at the flick of a button, so it is a very, very tiny amount of money that we spend for software. On homes capex, it is all built into our overall guidance of moderating on capex, so nothing changes there.”
Our Opinion:
From what we understand, the so-called 5G Standalone network is largely software-led, which should be the case for other operators as well. This means that the 5G SA network can be enabled at any time through a software upgrade on the network and on handsets to display the 5G logo on devices.
Internet or Cached Data: The Internet or Just Cached Data: What Are Users Actually Using?
While 5G does appear to offer much faster speeds and more efficient data delivery compared to 4G, the primary consumer-visible benefit has just been speed. There are not many meaningful day-to-day use cases for such high speeds, as previously discussed. The technical arrangement (or technology) allows telcos to deliver more high-speed data at lower cost, but this has not translated into new, widely adopted services or significant incremental revenue, as far as we understand.
Also Read: Monetising 4G and 5G: Key Takeaways to Date and What’s Next?
Even today, we believe telcos have not found game-changing ways to monetise 5G. The hype around new services promised by 5G—such as augmented reality, remote surgery, and others—never scaled or achieved mass-market adoption. We have already expressed our views on the limited monetisation prospects of the telecom industry back in 2024. One of the major uses of 5G networks today is simply to run speed test apps and check the speeds—beyond that, there is hardly any real-world usage for gigabit speeds, as noted earlier.
Also Read: Telcos Have Reached a Saturation Point with Limited Monetisation Prospects?
Even today, although we see a lot of hype around 5G, 6G, or whatever “G” the industry comes up with—often paired with buzzwords such as AI and sustainability—there is still very little scope for monetisation. In fact, current pricing itself is not sustainable, considering massive investments and limited monetisation, which is evident from ongoing tariff hikes by operators. If 4G or 5G had helped with meaningful monetisation, operators would not be raising tariffs or reducing plan validity.
Also Read: GSMA Calls for ARPU Increase to Support Telecom Infrastructure Growth
We believe the viable way for telcos to monetise is by increasing the prices of prepaid and postpaid plans—across voice, SMS, data, and any over-the-top telecom-layered services. The current model of bundled combo plans, introduced a few years ago, may have worked well at low tariffs or when offered for free, but will feel less attractive as prices rise. Customers have varying usage needs, and while combo plans suit some users, an a la carte approach serves another segment. Only time will tell how tariffs will evolve, especially in a market like India where the “cheapest tariffs” narrative is celebrated at every industry event.
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