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The Department of Telecommunications (DoT)’s nod to conduct trials for fifth generation (5G) for six months in India is a move towards implementation of 5G in India over the medium term. However, there are still a lot of variables and unknows that need to be addressed for the successful implementation of 5G in India, says a research note.
In a report, India Ratings and Research (Ind-Ra) says, The reserve prices for 5G auctions are too high. Although the 5G auctions are not yet announced, the reserve price could yield a return on capital employed of only 7%.
Secondly, the number of users willing to switch to 5G from 4G or 2G and the incremental average revenue per user (ARPU) that they are willing to pay need to be watched out for. With the current ARPU ranging between Rs121 to Rs166 per user per month, and more than 350 million subscribers still using voice only or 2G services with significantly lower ARPU, the viability of 5G for the telcos remains to be seen. Thir
Telecom stocks were trading in green, with the S&P BSE Telecom index increasing 18.4 points or 1.34% at 1388.31 at 09:48 IST. Among the components of the S&P BSE Telecom index, GTPL Hathway Ltd (up 2.75%), HFCL Ltd (up 2.72%),Vindhya Telelinks Ltd (up 2%),OnMobile Global Ltd (up 1.83%),Bharti Airtel Ltd (up 1.78%), were the top gainers. Among the other gainers were Vodafone Idea Ltd (up 1.33%), Mahanagar Telephone Nigam Ltd (up 1.25%), Tejas Networks Ltd (up 0.99%), ITI Ltd (up 0.84%), and Tata Communications Ltd (up 0.36%). On the other hand, Reliance Communications Ltd (down 1.8%), and Sterlite Technologies Ltd (down 1.27%) turned lower.
At 09:48 IST, the S&P BSE Sensex was up 203.24 or 0.42% at 48456.75.
Ragini Saxena and P R Sanjai, Bloomberg News
(Bloomberg) Indiaâs wireless carriers have avoided partnering with Chinese telecom players for 5G services, the fallout of a bloody border standoff between the neighbors, as they start trial operations in the South Asian nation.
Bharti Airtel Ltd., Reliance Jio Infocomm Ltd., Vodafone Idea Ltd. and state-run Mahanagar Telephone Nigam Ltd. have tied up with equipment makers Ericsson AB, Nokia Oyj, Samsung Electronics Co. and state-run Centre for Development of Telematics, the telecom department said in a statement on Tuesday. Reliance Jio will also conduct trials using its own technology. The trial duration will be for six months, including a two-month period for procurement and setting up of equipment.
Read more about Telecom shares slide on Business Standard. Telecom stocks were trading with losses, with the S&P BSE Telecom index falling 8.72 points or 0.64% at 1355.31 at 13:48 IST.