5G Yet to Create New Revenue Streams for Telecom Operators, Says Airtel Executive: Report

Even after three years since its launch, 5G has yet to generate new revenue streams for telecom operators in India or elsewhere in the world, with speed being its only differentiator from 4G, according to a senior executive at Bharti Airtel. This comment comes just after Airtel announced on Tuesday that it had closed a 5G Core equipment deal with Ericsson to transition Airtel’s non-standalone (NSA) network to a 5G standalone (SA) mode.

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Also Read: Bharti Airtel Partners with Ericsson to Transition to 5G Standalone in India

Airtel’s Transition to 5G SA

Bharti Airtel may begin switching its 5G services to a 5G SA network—moving away from the NSA mode it has been using—in one or two cities within three years, The Economic Times reported, citing a senior Airtel executive. The executive noted that India’s second-largest telecom operator has significant traffic on its 4G bands, and there is no tangible benefit for users in shifting modes.

No Intention to Immediately Switch on SA

“SA…we are already doing it for our fixed wireless access (FWA) piece and all our core networks are anyway SA-ready. But we have no intention to switch on SA now for some time. We have done a long-term deal with Nokia and Ericsson, and over a period of five years, all of this will shift. But nothing on the anvil right now,” the executive reportedly said.

Also Read: Telcos Have Reached a Saturation Point with Limited Monetisation Prospects?

The Airtel executive stated that the operator has a significant traffic on existing 4G bands. “4G traffic is not growing but 5G is. But unless more and more traffic gets offloaded on the 5G bands, and the spectrum gets released for us (Airtel) to be able to use it for SA … because, for SA, you need spectrum in the mid-band, say 1800 MHz or 2100 MHz band, and therefore, until that happens, we are in no hurry,” the executive said, according to the report.