Interest in 5G technology remains strong among both consumers and enterprises in India, with 5G subscriptions projected to soar to about 700 million by 2028. “Indian enterprises see 5G as the crucial enabler for their digital transformation journey,” Nitin Bansal, MD, India & head of Networks, Southeast Asia, Oceania & India, Ericsson, tells Sudhir Chowdhary in a recent interview. Excerpts:
How does Ericsson foresee 5G proliferation in the country? How has Ericsson’s business grown since 5G was launched in India?
India has seen a rapid deployment of 5G networks with the 5G services available in more than 380 districts in India. As per the recent Ericsson Mobility Report, 5G is projected to comprise roughly 57% of mobile subscriptions, totalling around 700 million, by 2028, positioning India as a significant global 5G market.
India remains a strategic market for Ericsson. In the last quarter ending June 30, 2023, India stood second amongst the top five countries in net sales, contributing 14% to the overall revenue after the United States. In the market area of Southeast Asia, Oceania, and India, sales adjusted for comparable units and currency experienced a remarkable 71% Y-o-Y growth, primarily attributed to gains in the 5G market share in India.
In the enterprise segment, how do you see the adoption of 5G? With regard to private 5G, what use cases are in demand?
Indian enterprises are embracing digital transformation and are making required investments in modernising their legacy systems with new technologies to drive innovations, operational efficiencies, growth, etc. According to an Omdia survey, 52% of the 316 enterprises surveyed see 5G as the crucial enabler for their digital transformation journey, indicating a strong interest in adopting 5G in the near future.
The primary 5G use case for enterprises is to enhance operational flexibility, efficiency, and reliability. Industries like manufacturing aim to implement features such as smart manufacturing and robotic process automation for improved efficiency. Ericsson’s 5G for Business — a 2030 market compass study predicts the global industry digitalisation market for service providers to reach $700 billion by 2030. In India, 5G enabled digitalisation revenues for service providers is predicted at $17 billion by 2030.
What are the various data consumption trends that you foresee in the Indian market with 5G in the next few years?
Interest in 5G technology in India remains strong, with approximately 31 million 5G subscriptions recorded by the end of 2022. The benefits of 5G are expected to drive consumer loyalty, with seven out of ten current smartphone users eager for improved video streaming quality when they switch to 5G. Those already equipped with 5G-ready devices are embracing digital services at a higher rate than 4G users, engaging in over three digital services.
Moreover, as per the June edition of the Ericsson Mobility Report, average data traffic per smartphone in the India market is projected to grow from 26 GB per month in 2022 to around 62 GB per month in 2028. Further, total mobile data traffic is estimated to grow from 18 EB per month in 2022 to 58 EB per month in 2028, growing at a CAGR of 22 percent. This data shows that as 5G infrastructure continues to expand and gain momentum, it is expected to revolutionise the way consumers interact with digital services, enhancing their experiences and driving widespread adoption across the region.
With 5G launched in the country, what are the key areas that you looking to hire for?
Ericsson has its largest workforce based out of India and the India market has the complete breadth of operations. We are now adding around 2000 people to establish a technology centre in Pune and ramp up our production capacity and operations with our partner, Jabil. Additionally, we are hiring for roles like data analysts, data scientists, artificial intelligence, machine learning, and people who can do network slicing and manage cloud applications.