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Swedish telecom equipment manufacturer Ericsson anticipates that network densification will propel its next phase of growth in India, responding to the escalating data consumption trends among users. Nitin Bansal, Ericssons Managing Director for India and Head of Networks for the Southeast Asia, Oceania, and India market, shared insights on the company’s growth strategy in an interview with PTI.
Bansal noted the significant potential for fixed wireless access in India, predicting it will soon outpace deployments in the United States. He emphasized that the upcoming growth phase will concentrate on meeting increasing traffic demands, primarily through enhancing network utilization via densification. According to Ericsson’s estimates, data traffic per smartphone user in India is projected to surge from 29 GB per month to 68 GB by 2029.
"Service providers will need to densify the network to enhance user experiences if this trend continues," Bansal stated.
Despite a record surge in business attributed to a rapid 5G rollout in late 2022 and early 2023, Ericsson has recently experienced a slowdown in its operations. The company reported a 44% year-on-year decline in business for the third quarter of September 2024 in the Southeast Asia, Oceania, and India region.
Bansal acknowledged that while demand for 5G may have decreased, opportunities remain in both 4G and 5G services as the company aims to broaden its market approach. "The business is cyclical—given that data consumption is set to grow from 29 GB to 68 GB by 2029, there will be a pressing need for capacity enhancements across networks," he explained.
In a recent development, Vodafone Idea (VIL) announced a ?30,000 crore capital expenditure program to bolster 4G and 5G capacity across 17 circles in India, selecting Ericsson, Nokia, and Samsung for the contracts. Ericsson has secured management of telecom networks for 10 out of 17 active circles with VIL.
In addition to network build-out and densification, Bansal expressed optimism about business growth in India by focusing on network development and Application Programming Interfaces (APIs). He highlighted a recent initiative involving leading operators, including Jio and Bharti Airtel, to collaborate in developing and selling network APIs globally, which he believes could be a game changer for the industry.
Bansal stressed that exposing network APIs to startups could significantly enhance network usage and create new business opportunities, particularly in the enterprise solutions sector.
Regarding the demand for artificial intelligence (AI) in the telecom industry, Bansal pointed out that operators are increasingly seeking AI solutions to boost network efficiency and performance. He noted ongoing efforts to integrate neuromorphic technology to minimize power consumption, aligning with the industrys shift towards greener solutions. |
