Airtel’s Perspective on 5G Fixed Wireless Access (FWA) Monetisation

An initial use case of 5G mobile networks, Fixed Wireless Access (FWA) will get monetised in India as telecom operators cannot use fibre in every place due to the cost and time constraints.

Telecom Operators’ Strategy

Randeep Sekhon, Chief Technology Officer (CTO) of Airtel, stated that telecom operators cannot try to fiberise every place since there are money constraints and it consumes time.

Both the prominent telecom operators in India, Reliance Jio and Airtel, are struggling to monetise the next generation of 5G services even after a year of launch. Both companies rolled out their 5G FWA services in main metro cities last year in a bid to start monetising their 5G networks.

According to the CTO of Airtel, “By the time we come down to FWA, the technology is mature. The modern prices are now reasonable. We can create a cost of home pass comparable to a home pass in FTTH (fibre-to-the-home), which means now the operators will not shy away from deploying AirFiber or FWA in large numbers.”

Some of the areas where 5G FWA will be fit are remote villages, remote locations and schools. Randeep Sekhon said use cases steered by the latest 5G networks have also started emerging in the industrial segment. He added, “One case is a factory, which is a commercial contract. The factory is 5G-first. In the first factory, it was wired (connectivity), while the second factory was a hybrid between wired and Wi-Fi.”

The telecom operator, Airtel, is also in talks with first responders to explore network slicing-based 5G use cases. For example, a high-bandwidth 5G slice could help police transmit high-resolution videos to their command-and-control centres. And the next big use case of 5G is in the healthcare sector. A 5G-connected ambulance could help medical workers on the ground to offer critical care on the way to the hospital, which can save lives.

The telecom operator’s CTO is confident that 5G use cases will emerge, offering monetisable opportunities in the near future.

As per the head of GSMA Intelligence, Peter Jarich, telecom operators globally have not been able to monetise 5G networks even after investing billions of dollars. He further added that the intention behind 5G was that it would unlock new revenues and new capabilities that the telecom operators could monetise. However, the upcoming 5G-advanced technology may find a resolution to some of the monetisation pain points.

Currently, Fixed Wireless Access seems to be the best bet.

On Monday, March 18, 2024, the share price of Bharti Airtel Ltd opened at ₹1,225.00, touching the day’s high at ₹1,230.55, as of 2:25 PM.

About Bharti Airtel Ltd

Bharti Airtel Ltd is one of the leading telecommunication services providers in the world. The company has a presence in India, Sri Lanka and Africa.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.