5G Rollout in India Could Face Potential Delay Due to Coronavirus

Analysts predict that Coronavirus will be a massive threat for 5G rollout not only in India but globally as well

By February 11th, 2020 AT 8:00 PM
Highlights
  • The government is aiming to conduct 5G spectrum in Q1 FY21
  • Coronavirus will have a major impact on 5G rollout in India and globally
  • Telecom operators in India have major network deployment deals with Chinese vendors

While telecom operators in India are not interested in participating 5G spectrum auction, analysts now predict that the government itself will have a tough time in auctioning the ‘costly’ 5G spectrum. An ET Telecom report says the government will likely face difficulties in selling the 5G spectrum because of Coronavirus. A few months ago, the DoT approved all the vendors to participate in 5G trials in India, including Huawei. With the Coronavirus outbreak in China, telecom gear makers will face difficulties in manufacturing the required 5G gear. Telcos were bullish on the fact that they do have other vendors like Ericsson and Nokia, which will help in 5G rollout, but Chinese makers like Huawei and ZTE are leading the 5G deployment race.

5G Launch in India Will Face a Potential Delay

The government is planning to conduct the next spectrum auction in Q1 FY21, where it will auction both 4G and 5G airwaves. However, with the ongoing Coronavirus outbreak in China, the business case will likely to be spoiled and it will put already struggling telcos to stay away from the auction.

“If the coronavirus menace continues for a few more months, the government may find it challenging to auction expensive 5G spectrum before January-February 2021 since a prolonged epidemic would hit 5G network deployments and devices availability in India too, further reducing the business case for local telcos to participate meaningfully in any early 5G airwaves sale this year,” Rajiv Sharma, research head at SBICap Securities said to the publication.

In addition, the production of 5G telecom gear will be affected in China, due to which the rollout may further get delayed. Huawei is actively working with Indian telcos Bharti Airtel and Vodafone Idea for deploying new network technologies. Even without Coronavirus, 5G rollout in India is expected to be delayed as telcos are reeling under heavy debt with the fresh setback being given by the Supreme Court regarding AGR dues.

Telcos Say Coronavirus Will Not Impact 5G Rollout in India

Analysts predict that Coronavirus will be a massive threat for 5G rollout not only in India but globally as well. However, the Cellular Operators Association of India (COAI) which represents private telcos like Bharti Airtel, Vodafone Idea and Reliance Jio vouched that the 5G rollout will not be delayed as they have deals with non-Chinese telecom gear makers as well. However, COAI said that 5G smartphone business might be impacted in India and globally.

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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Bharat KhannaNikhilChetan-bengaluruLoveAirtelSenthil Recent comment authors
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bharat khanna
bharat khanna

Let them better their 4g, by next year they should start shutting down 2g to make indoor coverage better. Bring up the ARPU so that the price point for airwaves is justified!

City
Mumbai
Chetan-bengaluru
Chetan-bengaluru

Airtel hopefully will start switching off 2G as well as and when it’s non liberlised spectrum gets expired

Nikhil
Nikhil

They need sub-Ghz spectrum to improve their indoor coverage. They need either 900Mhz or 850Mhz or 700Mhz. All this need time. So blanket coverage from Airtel is distant dream.

LoveAirtel
LoveAirtel

No one is going to make large investments in telecom in India at the moment. We are lucky we got 4g. The obsession of getting things free or very cheap has made 5g unviable. Who will pay tens of thousands of crores for spectrum and then invest lakhs of crores for new equipment only to charge 150 per month to a few lakh people? For a couple of years, 5g handsets will be expensive. Just like most people in India are too cheap to get proper high speed home broadband and make do with mobile Internet, similarly, most will make… Read more »

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Airtel
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