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Telcos with 4G network will have to invest less for 5G services: TRAI
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SME Times News Bureau | 23 Feb, 2019
The Telecom Regulatory Authority of India (TRAI) in a white paper
released on Friday said although deployment of the 5G network would
require substantial investments, the operators which currently have 4G
network would need a lesser amount of investment as they can use their
existing 4G infrastructure for 5G services.
The white paper named 'Enabling 5G in India' said new operators would require large investments.
"Deployment
of 5G network will require substantial investment in the core, Radio
Network and Spectrum. However, the 5G services will open up many new
revenue streams also as it will cater to variety of solutions to new
verticals besides enhanced mobile broadband solutions," it said.
"Operators
with existing 4G footprints will be able to leverage their 4G
infrastructure for providing 5G services and hence their investment
requirement will be relatively less. Whereas a greenfield operator will
need to establish the network from ground level and therefore would
require huge amount of investments," TRAI said.
The three
incumbent major operators - Jio, Vodafone Idea and Airtel - have their
4G infrastructure and network ready and the investment may not be huge
for them.
Referring to an estimate by Nokia, TRAI said that 5G
coverage compared to 4G coverage using 1800 MHz (megahertz) spectrum
band would be about 60 per cent. Operators with existing 5G footprints
will be able to leverage 4G unified license (UL) coverage through the
concept of dual connectivity or UL-sharing and hence will be able to
cover larger areas with the same number of sites.
A greenfield 5G operator will need to deploy about 66 per cent more sites to compensate for penetration losses.
On
the spectrum band for 5G, TRAI said: "Spectrum requirement for 5G
network lies around three key frequencies ranges: Sub-1 GHz (gigahertz),
1-6 GHz and above 6 GHz. The choice of spectrum among these ranges will
depend on the capacity and coverage requirement of the region."
"The
3.5 GHz spectrum band is likely to be the first band to be globally
used for 5G deployment. The Department of Telecom (DoT) is yet to
auction spectrum in the 3300-3600 MHz bands. Therefore, the
telecommunications service providers (TSPs) are likely to incur
initially an additional investment while launching 5G services on
account of spectrum cost," said the White Paper.
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