Ericsson Sees Network Densification Driving Growth in India: Report

Ericsson Anticipates Network Densification to Propel Next Phase of Growth in India: Report
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.

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