Swedish telecom equipment maker Ericsson anticipates that network densification in India will drive its next growth phase, fueled by a sharp rise in data consumption. Nitin Bansal, Ericsson's managing director for India and head of networks for Southeast Asia, Oceania, and India, noted the significant potential for growth in the fixed wireless access (FWA) market in India, which he believes could soon outpace that of the US, according to a PTI report.
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Growth Opportunity in Network Densification
Ericsson projects a substantial increase in data traffic, rising from 29 GB to 68 GB per smartphone user monthly by 2029. To meet this surge, the company expects telecom providers to enhance network density, thereby improving the user experience.
"The next phase of growth will focus on meeting increasing traffic demands, primarily through network densification to improve network utilization. Network densification will result from higher network utilization," Bansal said, adding, "If this trend continues, service providers will densify networks to enhance the user experience," according to the report.
India's 5G Rollout and Revenue Impact
Following a revenue boost from India's rapid 5G rollout in 2022 and early 2023, Ericsson reported a 44 percent year-over-year revenue decline in Q3 2024 for Southeast Asia, Oceania, and India but remains optimistic about ongoing 4G and 5G opportunities.
"Even though 5G demand may have tapered down, there are still opportunities in 4G and 5G services, particularly as the company looks to expand its aggressive approach in the market. The business is cyclic - with data consumption expected to grow from 29 GB to 68 GB by 2029, there will be a need for capacity enhancements across networks," Bansal was quoted as saying.
Vodafone Idea's Expansion Plan
Vodafone Idea (VIL) recently announced a Rs 30,000 crore capex plan to expand 4G and 5G networks across 17 telecom circles, awarding Ericsson two additional circles, bringing Ericsson's management coverage to 10 of VIL's 17 circles.
Bansal reportedly said that in addition to network build-out and densification, Ericsson is optimistic about business growth in India by focusing on network development and network APIs. The Application Programming Interfaces (APIs) project will involve startups that will develop technologies and platforms to enhance telecom network utilisation.
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Network APIs and Startup Collaborations
Ericsson's strategy in India also emphasises network Application Programming Interfaces (APIs) and collaboration with startups to unlock new telecom capabilities. A recent initiative by major operators, including Jio and Bharti Airtel, aims to scale API-driven digital services globally, opening new revenue streams and fostering innovation.
"The recent announcement about all leading operators, including Jio and Bharti Airtel, joining a new venture to combine and sell network Application Programming Interfaces (APIs) on a global scale to spur innovation in digital services is seen as a potential game changer. Exposing network APIs to startups is expected to drive network usage significantly. Interest from startups is increasing, particularly for enterprise solutions," he reportedly said.
Also Read: GSMA Says 750 Million Gained 5G Access Globally in 2023, Largely Driven by India
AI in Telecom
Talking about the demand for artificial intelligence technology in the telecom sector Bansal reportedly said operators are primarily looking for AI solutions that enhance efficiency and performance in their networks.
"The focus is on passive network management and improvements and other applications of AI. There are efforts to embed neuromorphic technology to significantly reduce power consumption, suggesting a push towards greener solutions," the report quoted Bansal as saying.
