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    TRAI: 5G will Create Cumulative Economic Impact of $1 Trillion by 2035

    The fifth-generation or 5G technology is expected to make a cumulative economic impact of $1 trillion by 2035, and would facilitate people to become digitally empowered, a top regulatory official said.

    “In India, 5G is predicted to create a cumulative economic impact of $1 trillion by 2035. Implementation of 5G and associated technologies will help unlock the transformative power of digital communication networks and enable us to achieve the digital empowerment goal and improve the well-being of the people,” Telecom Regulatory Authority of India (TRAI) chairman PD Vaghela said.

    The top official, however, seconded the view of a high-level government-led panel that in its 2018 finding stressed upon a similar quantum of an economic impact once the next generation of services is launched nationally.

    The sectoral watchdog had recommended airwaves in the 3300 MHz – 3600 MHz bands for the commercial rollout of the next generation of networks but following the partial unavailability, telecom carriers have also demanded spectrum in multiple bands including mmWave frequencies.

    Vaghela said that 5G technology would offer significant improvements in network performance over the previous generations. “It is expected to also add other new service dimensions beyond the traditional voice and data through enabling technologies like the Internet of Things, artificial intelligence, robotics, automation, augmented reality and virtual reality.”

    On the back of potential economic benefits, the Department of Telecommunications (DoT) had in 2016 formed a high-level forum under the US-based Stanford University’s AJ Paulraj with multiple working groups to create a roadmap of 5G deployments in India.

    The group that had participation from telecom companies, felt the volume of licensed mobile spectrum in India was much lower as compared to developed countries like the US and the UK, and suggested strategies for the effective deployment of 5G networks.

    The official, however, said that the government has been working hard to ensure that the country would be benefitted by launching 5G services in a timely manner.

    “5G is likely to transform industries and Indian society, putting the country on an unprecedented growth trajectory. It will be used not only by the telecom sector but by other sectors as well, and this will also help in building the urban-rural gap,” he said, adding that a significant economic and social value could be generated by enabling use cases activated by new technology.

    Further, Vaghela said that 5G would have a massive impact on various industry verticals, and on the overall economy and effective spectrum and pricing will play a vital role in promoting healthy investment in the networks.

    The regulator had though tagged the 5G spectrum unit at a base price of Rs 492-crore which the telecom operators felt was too high and sought a pricing revision.

    Telecom is a capital-intensive sector, according to him, and believes that optimal utilisation of infrastructure and resources increased would help in bringing down capital and operational costs and improving the affordability of services.

    “5G calls for the adoption of a collaborative approach between the center and the states, local bodies and authorities on one hand, and industry and other stakeholders on the other, and merely putting in place 5G technology will not make the difference,” Vaghela added.

    TRAI had already initiated a dialogue with different ministries and departments for the early adoption of 5G use cases.

    While the DoT is yet to firm its plan for 5G field trials and spectrum auction, the Parliamentary Committee headed by lawmaker Shashi Tharoor has recently rapped the department for delaying the launch of 5G services in the country.

    ELE Times Research Desk
    ELE Times Research Desk
    ELE Times provides extensive global coverage of Electronics, Technology and the Market. In addition to providing in-depth articles, ELE Times attracts the industry’s largest, qualified and highly engaged audiences, who appreciate our timely, relevant content and popular formats. ELE Times helps you build experience, drive traffic, communicate your contributions to the right audience, generate leads and market your products favourably.

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