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Lack of fiberization to hit 5G roll-out: CRISIL

Lack of fiberization to hit 5G roll-out: CRISIL

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  25 Jun 2019 11:20 AM GMT

New Delhi: Switching to 5G will need massive investment in fiberisation by telecom companies and such investments in fiberised backhaul infrastructure which provides unlimited capacity and higher speeds has to gain further traction if 5G has to become reality, a report by CRISIL has said.

Lack of financial bandwidth and need for massive fiberisation investment will drive telcos to hive off assets, share networks, or diversify to play the 5G game, says the CRISIL report. If switching to 4G from 3G was all about rationalising capacity by Indian telecom operators, 5G’s clarion call is fiberisation – and more fiberisation.

But fiberisation is expensive and it comes on top of spectrum costs that are sky-high at current prices. To boot, telcos are saddled with a staggering debt of Rs 4.3 lakh crore as of March 2019.

That is why India is set to witness some tectonic shifts in the fiberisation landscape and the birth of new business models among telcos and tower companies around the launch of 5G, the report cautioned. It said 5G technology dictates fiberisation levels of over 70 per cent, versus 25-30 per cent levels at present. CRISIL estimates that if each player were to reach this level individually, Indian telcos may need investments of up to Rs 1 lakh crore only in laying fibre networks over the next 2-3 years.. (IANS)

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