Stories
Indias 5G Capex Shifts From Coverage to Network Intelligence and Monetisation
- •Ericsson executive Andres Vicente states that India's 5G rollout has moved from basic coverage building to network intelligence and monetisation.
- •Mid-band coverage has reached 95 percent of India's population, making a 2023-style capex spike unlikely as future spending will be incremental.
- •Fixed wireless access has gained traction with over 30 million customers, serving as an early driver of 5G monetisation and higher ARPU.
- •Ericsson remains confident in Vodafone Idea securing funding for its massive capex plan following recent government settlements and credit improvements.
- •India is emerging as a vital manufacturing and export hub for Ericsson, producing advanced 4G and 5G equipment and antennas for global markets.
Key Questions Answered
India's 5G investment has already covered much of the network rollout, with mid-band coverage reaching 95% of the population. The next investment phase will focus on incremental spending for network intelligence, core capabilities, and systems rather than a massive coverage expansion surge like in 2023.
Operators are monetising 5G through fixed wireless access (FWA), which serves over 30 million customers and significantly increases average revenue per user. Additionally, operators are introducing differentiated connectivity and commercial propositions like postpaid plans supported by India's high data usage.
Ericsson has manufactured 4G and 5G equipment in Pune since 1994 and produces antennas through a joint venture with VVDN. The company uses India as a major export hub, having already exported over 12,000 antennas and 9 million components to regions like Europe.
