India to remain 2nd largest revenue market, says Ericsson's SE Asia head: Report

India is set to retain its position as Ericsson's second-largest market globally, despite a decline in revenue contribution, which fell from 13% last year to 5% in the September quarter. This decrease is attributed to a reduction in capital expenditure by telecom companies on 5G infrastructure.

Andres Vicente, Senior Vice President for the South East Asia, Oceania, and India market at Ericsson, expressed confidence in India's telecom landscape, according to a report by Livemint. He highlighted that the gradual rollout of 5G by Vodafone, alongside competitors like Jio and Airtel, will contribute to maintaining this market status.

Vicente stressed that Ericsson is prepared to support all operators, as he believes 5G will emerge as a more cost-effective solution for them in the long term. He highlighted that investments in 5G technology have resulted in a 30% improvement in spectrum efficiency and cost savings, which will drive telecom operators to transition from 4G to 5G networks in the coming years, ultimately benefiting Ericsson’s revenue.

Recently, Ericsson secured a contract with Vodafone Idea for both 4G and 5G deployment as part of a $3.6 billion agreement announced on September 22. 

Vicente said that both Jio and Airtel have already launched 5G services, with Vodafone Idea expected to follow suit. As data usage is projected to rise from an average of 29GB to 68GB per user by 2030, operators will need to enhance their network capacity through increased site density and bandwidth.

The advent of 5G brings substantial improvements over 4G, particularly in low-latency applications critical for technologies such as virtual reality, autonomous vehicles, and the Internet of Things (IoT). Additionally, 5G supports a greater number of connected devices, paving the way for advancements in sectors like energy distribution, environmental monitoring, and industrial automation.

Ericsson's supplies to Vodafone Idea will be managed from its Pune factory, which is operated by Jabil, a partner company that also supplies equipment to Airtel and Jio. Regarding export plans, Vicente mentioned that while Ericsson is open to the idea of exporting 5G equipment from India in the future, their immediate focus remains on supporting local telecom operators in their 5G rollouts.

On the monetisation front, Vicente pointed out that Fixed Wireless Access (FWA) could present opportunities for 100 million connections by 2030, up from the current 6 million. He also highlighted the growing interest among enterprises in private 5G networks and network slicing to meet their specific needs.

Additionally, Vicente noted that allowing app developers access to networks through APIs (application programming interfaces) could further spur innovation and monetization. He revealed that Ericsson is currently in talks with telecom operators to explore GenAI-based dynamic network slicing opportunities, which could position Indian telecom companies among the leaders globally in adopting innovative technologies.

Vicente expressed optimism about India's role in technological advancement, stating that it is one of the few countries with a significant 5G user base and is proactive about leading in innovation. He mentioned that India's commitment to 5G, artificial intelligence, and digitalisation aligns with Ericsson's vision.

To strengthen its research and development initiatives in India, Ericsson has established a new R&D team in Bengaluru focused on network APIs that can serve various industry sectors. The company also announced a collaboration with multiple global telecom operators, including Bharti Airtel and Reliance Jio, to create and market APIs worldwide, boosting innovation among Indian developers and facilitating their entry into global markets.