India’s Growing Telecom Story
Even as India is rolling out 5G, the government has set its sights on garnering a share of the 6G technology market
India’s growth story in the telecom sector has been noteworthy, being home to one of the world’s fastest 5G rollouts as well as the second largest global market for handsets and mobile telephony. Even as this growth story is being played out, the government has set its sights on acquiring at least 10% of the intellectual property rights associated with 6G technology.
The domestic telecom industry has invested upwards of Rs.2.25 lakh crore in the 5G technology as part of the large-scale rollout and India’s IP was recognized for the first time when 5Gi standards were included in the global 3GPP standards. “Now the focus is on 5G and advanced 5G tech and when it shifts to 6G, India must be well prepared with the IPRs, says Ashwini Vaishnaw, India’s telecom minister.
The minister made these comments after launching the Bharat 6G Alliance and set the target of ensuring that at least 10% of the IPRs for 6G should be with India by 2029-2030. The minister noted that India is already among the top three 5G ecosystems in the world with over 2.7 lakh 5G sites having been installed since launch last October.
Bharat Alliance could be the harbinger of a new wave
Vaishnaw described the launch of the 6G Bharat Alliance as a step in moving the country towards the goal of developing a 6G ecosystem. He underscored the importance of going from being consumers to manufacturers of technology. The Alliance comprises industry, academia and government working jointly to lead the way in 6G technology and its manufacture.
The Bharat 6G Alliance will serve as a platform for comprehensive discussions on various facets of emerging telecom technologies and platforms that will shape the next decade. It will facilitate collaboration, knowledge sharing, and strategic planning to ensure India remains at the forefront of technological advancements.
India has the markets, now for the technology
Of course, India’s role as a consumer of mobile telephony is scaling new heights not just in terms of all the top handset makers setting up contract manufacturing units in the country but also from the point of view of becoming the second largest market for these instruments. Reports suggest that top brands such as Samsung, Motorola, OnePlus and Oppo have already lined up a series of handsets in the mid-to-high-end price spectrum.
Industry observers note that this is a welcome change from yore where most big brands were only pushing handsets in the lower end of the price bracket, given that persistent demand from smaller towns and cities. However, research now suggests that mid-range devices have become the go-to segment even for this customer segment.
Demand for handsets could be on the upswing this year
A report from Counterpoint Research notes that pent-up demand for new handsets could drive sales up for the first time in the past two years. Macroeconomic headwinds and the post-Covid impact had resulted in sales dipping to their lowest levels in some time. The opening up of 5G networks further boosted this demand.
The report also noted a change in consumer behavior whereby demand is more focused around promotional periods where one in every two consumers wait for these events to utilize the value for money offers that they seem to generate. Quite obviously the new launches are being timed to coincide with the festival season that starts in August.
In fact, some brands are aiming to launch new devices in July itself to cash in on the festival demand. The second half of the year usually contributes more than two-fifths of the annual sales generated from India. Given that the last such spurt in buying happened immediately after the pandemic, the chances are that these customers would be looking for upgrades now.
