In an exclusive interview with BW Businessworld, Nitin Bansal, Head of Network Solutions MOAI, Ericsson discusses the importance of 5G and how the capabilities of 5G will span several dimensions, including tremendous flexibility, lower energy consumption, greater capacity, higher bandwidth, security, reliability, and speed, as well as lower latency and device costs.
Given that a major portion of India still connects to 2G networks, how would that impact the transition to 5G? Is it possible for telcos to transition directly from 2G/3G to 5G networks in rural areas?
Unlike previous generations of Radio Access Network (RAN) standards, which were deployed as standalone networks, 5G NR is designed from the start to interwork fully with existing 4G LTE networks. While this provides a high degree of continuity and seamless experience for users, it also demands careful planning in order to minimize risk to existing services.
To ensure the smooth introduction of 5G, operators need to look ahead and identify the deployment approach which makes the best use of existing investments and best supports their own business strategies. The best way to start would be to build an efficient 4G network and while doing that, modernize the legacy equipment that can only operate on 2G.
At Ericsson, we enable evolution to full 5G deployment through manageable steps, based on well-designed components of multiple technologies, in a way that matches business and technology realities. Our basebands, our radio and core, and our software are built for evolution, we work with our operator partners to prepare a comprehensive strategy which ensures that their legacy equipment is modernized and not ripped and replaced. This cuts investment costs drastically, decreases time-to-market and makes operators ready to launch on day one.
How different is 5G from 4G in terms of technology? What are the features of 5G Technology that Ericsson is developing?
Previous generations of mobile networks addressed consumers’ need for voice, SMS, and Data. For instance – 2G had enabled voice & SMS, 3G enabled web browsing and 4G enables higher speed data and video streaming. The transition to 5G will add exciting new capabilities to telecom networks and will serve both consumers and multiple industries. The capabilities of 5G will span several dimensions, including tremendous flexibility, lower energy consumption, greater capacity, higher bandwidth, security, reliability, and speed, as well as lower latency and device costs. It will bring new opportunities for people, society, and businesses.
Some of the key features of a 5G network would be:
In fact, we recently showcased the first-ever live demonstration of 5G technology in India. It is part of the company’s ongoing efforts to build a robust 5G ecosystem in the country. The demonstration using Ericsson’s 5G test bed and 5G New Radio (NR) delivered a throughput of 5.7 Gbps and ultra-low latency of 3 milliseconds.
The telecom industry in India is under a lot of pressure for revenues with margins shrinking and competition becoming intense. Do you think they will have the appetite to the risk of jumping into 5G in immediate future?
While we answer this, it is important to look at the tremendous growth in data traffic that we are witnessing. The latest Ericsson Mobility Report estimates 40% CAGR growth in mobile broadband traffic primarily over the next 5 years. This growth is being driven by high video usage as well as high data consuming applications. To match this growing demand, networks need to evolve, and we are already seeing preparations for the preparation for 4G enhanced and 5G.
From Ericsson’s perspective, we can say that everything we have delivered since 2015, based on our new platform is software upgradable to 5G. What that means for telecom operators is that we are future proofing their investments that they are doing today for 4G. Whenever the time is right to launch 5G, these nodes can be remotely upgraded to 5G.
5G is expected to play a major role in digitization of industries. As per our latest 5G business potential report, Industry digitalization investments will generate an estimated USD 27 billion revenue opportunity for Indian telecom operators by 2026. The largest opportunity will be seen in sectors like manufacturing, energy and utilities followed by public safety and health sectors.
Is Ericsson exploring local partnerships/ collaborations for 5G development?
Partnerships are key for the success of 5G. Ericsson has launched world’s first 5G platform and has signed 5G collaboration agreements with 38 telecom operators, 20 industry partners and 45 universities and institutes around the world including IIT Delhi. As part of the MoU, we will set up an incubation center including a 5G test bed. The facility will be used for development of 5G technology and use cases in India.
Additionally, we have recently signed a 5G partnership with the country’s largest telecom operator – Bharti Airtel. As part of the partnership, Ericsson will work with Airtel on creating a strategic roadmap for the evolution of the network to the next-gen 5G technology.
We are ahead of the game with our 5G platform that addresses the needs of the first movers in 5G with solutions, enabling today’s networks to evolve smoothly to the next generation of networks. Together with our partners, we are continuously testing, learning and pushing the boundaries of how 5G can meet the diverse needs of the future. We are bringing the learnings and experience from our global partnerships and are working with partners in India to create the blueprint of 5G deployment in the country.
What are the use cases of 5G? Which categories will benefit from the technology?
The International Telecommunication Union’s Radiocommunication Sector (ITU-R) as part of its program to expand and support diverse usage scenarios and applications beyond 4G has defined three broad areas of usage and applications:
5G would also enable something we call the industrial internet. We recently did a study called “Industry impact of 5G” where we spoke with over 100 C-level executives from 10 industries. This study indicates that the top 3 most prominent use cases will be found in sectors like “Energy and Utilities, Manufacturing and Healthcare”.
Under Make In India, what are the plans of local manufacturing and promoting local manufacturing in 5G?
Ericsson started local manufacturing of telecom equipment in India way back in 1994. In fact, we were the first company to do so. Today, we have a state of the art manufacturing facility in Pune, Maharashtra. This facility caters to the local needs of the Indian telecom industry. We are also looking to start exporting from this facility to other markets in south-east Asia.