The Chronicles of 5G deployment in India : News and Updates

So the recently inaugurated submarine cable from Chennai to A&N Islands will help 4G and eventually 5G deployment on the island. Airtel has already launched 4G services.



It looks like we are seeing some consolidation in the FTTH market. The consolidation maybe driven by increasing competition in the market. That might eventually lead to nationwide deployment of FTTH, just like we saw nationwide deployment of 4G. Optic fibre network is still patchy in many parts of the country, especially in the NE. Case in point is the FTTH network in Tripura :


Oh and it seems the Chinese vendors are out of 5G in India. This is second time I am reading this from 2 different prominent newspapers. Not sure if the ban will be officially announced or not. I really hope it is officially announced and its not some unofficial sanction :



Now on to the main event. In a previous post I anticipated VVDN's local 5G manufacturing capabilities to come in handy for Jio, Airtel and other telecom companies. That was a pretty accurate guess it seems :

India's VVDN aims to expand local manufacturing for 5G equipment

The original equipment maker (OEM) is also working with Airtel and Japan’s Rakuten through its partners to provide WiFi and 5G products. It is going to follow a partner-led model to work with telecom operators across the globe

By Danish Khan, ET Telecom
Updated: August 10, 2020, 18:53 IST

NEW DELHI: VVDN Technologies, home-bred telecom contract manufacturer, is expanding its local manufacturing for 5G equipment for local and global telecom operators.

The company will start a PCB plant with an investment of Rs 60-70 crore, having invested around Rs 75 crore on the manufacturing side in 12-15 months, Puneet Agarwal. Founder and Global Sales head at VVDN Technologies said. “The plant will not only assemble the PCB but will also be able to fabricate the bare PCB in India,” he said. "Importing finished 5G and WiFi products will be difficult going forward and that will pave the path for local designing and manufacturing and help companies like us."

The original equipment maker (OEM) is also working with Airtel and Japan’s Rakuten through its partners to provide WiFi and 5G products. It is going to follow a partner-led model to work with telecom operators across the globe. VVDN recently inked a 5G manufacturing deal from Sterlite Technologies to make 5G radio products including small cells and macro RU. Both companies are in talks to secure business for 5G macro and small cells from Japan’s 5G telco Rakuten, the executive revealed.


The company is also in talks with Bharti Airtel to provide Internet of Things (IoT) products like smart cameras. “We are providing point to point last mile connectivity solution and are supplying hardware and software through HFCL. These products are designed and manufactured in India completely,” Puneet Agarwal. Founder and Global Sales head at VVDN Technologies.


VVDN recently raised Rs 250 crore from Motilal Oswal private equity to fund its manufacturing and R&D expansion in India, especially in the 5G space.

“…for the next few years, we are actually seeing a multi-fold growth right over the top line and bottom line. That is where the company management is able to see everything coming along. We might look for more funding over the next two years,” the executive said.

VVDN is shipping close to a million units in the telecom space and claims it has an order booking for full of next year. On the manufacturing side, it has around 2000 employees, which is growing 30-40% every quarter. “During the COVID quarter we have hired more than 500 people,” he said, adding the company has 300 people who are looking into product engineering.



This article seems a bit outdated. As the article in the post above will show, Rakuten has already signed a deal with Sterlite for "hardware". The "hardware" seems to be 5G macro and small cell radio units. In India almost all radio units are imported. Great to see that we have grown design and manufacturing capabilities enough to secure export orders that too for cutting edge 5G networks.

Given how Rakuten & Jio are both going for O-RAN based 5G, any piece of hardware/software that one deploys can be used by the other too. Essentially Rakuten's playbook in Japan will be repeated by Jio in India. Even more interesting is Airtel's connection with VVDN, the company has shown no previous initiatives on O-RAN. I have mentioned in the previous post of the economic trouble that awaits Airtel and Vodafone-Idea if they miss the O-RAN bus while Jio makes O-RAN work. This is the first mention of Airtel engaging anyone beyond their traditional suppliers Ericsson and Nokia.

In any case, the 5G space is heating up in India. It is wonderful to see domestic IT giants like TCS, Wipro, Infosys, Tech Mahindra take on the challenge. 5G is primarily an IP/software driven network and this it plays into our strength. Also it is good to see manufacturers pulling up their socks : State owned ITI with the BSNL 4G bid, Sterlite and VVDN with Rakuten 5G.

The only problem is the semiconductor chips. We do have the likes of Signalchip designing 5G NR chips but those are manufactured in South Korea at Samsung's 22nm foundry. We need to have domestic chip making tech with in reasonable tech limits. SCL's foundry makes chips on 180nm CMOS tech, that's very old tech. This is where GoI needs to step up.
 
State-run ITI, Tech Mahindra to run 4G pilot program on BSNL's network

State-owned ITI Limited and Tech Mahindra are planning to run a fourth-generation or 4G pilot program to demonstrate high-speed data utility on Bharat Sanchar Nigam Limited (BSNL) network, and manufacture critical telecom equipment locally, dashing hopes for multinational vendors such as Nokia and Ericsson.

By Muntazir Abbas, ET Telecom
Updated: August 11, 2020, 14:51 IST
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NEW DELHI: State-owned ITI Limited and Tech Mahindra are planning to run a fourth-generation or 4G pilot program to demonstrate high-speed data utility on Bharat Sanchar Nigam Limited (BSNL) network, and manufacture critical telecom equipment locally, dashing hopes for multinational vendors such as Nokia and Ericsson.

"ITI has been discussing with various leading technology companies and startups to build a Make in India framework for 4G upgradeable to 5G technology," RM Agarwal, chairman of ITI told ET Telecom, and added that the two Indian-origin giants have a plan to conduct Proof of Concept (PoC) of the 4G solution on BSNL network. The state-backed telecom carrier offers 3G services in the 2100 MHz frequency band and demanded additional 5 units to launch commercial 4G services. The Cabinet has though approved 4G spectrum allocation in October 2019, as a part of revival package.

In June, both ITI and Tech Mahindra have entered into a pact to work together in the areas of 4G and 5G networks, as well as Smart City programs, as a part of Centre's Atmanirbhar Bharat or self-reliant India initiative.

The state-controlled enterprise, according to Agarwal would manufacture the 4G and 5G eNodeB, an LTE Radio Access Network element, and develop other related network capabilities. The company aims to leverage its previous experience of base transceiver Station (BTS) equipment manufacturing in addition to antenna, shelters and microwave equipment production, it had undertaken for the public-sector telecom company's GSM expansion program. Earlier, it had supplied nearly 25 million lines of 2G, 2.5G, and 3G network which, according to the official is operational and is being used by BSNL's subscribers even today.

Following the allegations of homegrown companies of restrictive conditions and India-China border standoff, state-backed BSNL had to cancel its request for proposals (RFP), floated in March for a network upgrade to 4G as well as the deployment of new sites.

Both, Finnish Nokia and Chinese ZTE being suppliers of 2G and 3G equipment, were though hopeful to bag further orders from the state-driven telco for the 'proprietary migration' to the 4G network which, however, now look bleak.

"BSNL tender will come out only after the acceptance of the Department of Telecommunications (DoT) committee, and ITI will be a key player to watch for as it leads the Atmanirbhar Bharat consortium," RK Bhatnagar, former advisor, DoT said. The Bengaluru-based company has also inked deals with startups such as Lekha Wireless, Resonous, Signal Chip, Nivetti Systems and Sooktha, and is in discussion with other domestic firms to meet the entire end-to-end current 4G and the future 5G requirements through consortiums. "The effort is aimed at consolidating the various components for upcoming technologies of 4G and 5G so that the Indian telecom sector relies on local companies to achieve self-reliance," Agarwal added.


BSNL, as a part of phase - IX network expansion, wanted to upgrade as many as 49,300 sites to 4G and the addition of 7,000 new sites in two metropolitans- Delhi and Mumbai for Mahanagar Telephone Nigam Limited (MTNL).

.


Is this the end of the road for Nokia & Ericsson in BSNL's 4G network ? If they are going to do pilot runs soon, the 4G tech is almost ready for deployment.

Also, Signalship is getting a play🥳🥳
That means we aren't going to import foreign designed chips. It is likely going to be foreign made though.


Oh and more good news for A&N Islands :

 
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They really ought to hurry up with the schemes. Some countries are already rolling out 5G, although we don't have a lot of use cases for 5G in India yet. Well better late than never. The domestic companies already have substantial manufacturing capabilities. This will boost it certainly.

Govt to roll out PLI scheme to boost domestic telecom equipment production

By Ajith Athrady, DHNS, New Delhi, AUG 12 2020, 19:44 IST
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The Department of Telecom is working on rolling out a Rs 15,000-crore worth production-linked incentive (PLI) scheme to promote the domestic production of telecom equipment. The DoT is preparing the draft cabinet note to provide financial incentives

The DoT is preparing the draft cabinet note to provide financial incentives to companies that produce 5G telecom equipment. The scheme is expected to be launched in 3 to 4 weeks, said a DoT official.

The scheme's primary aim would be to boost the domestic production of telecom equipment and reduce the dependence of Chinese suppliers.

State-run Indian Telephone Industries Limited (ITI), Sterlite Technology, Tejas Network, and Himachal Futuristic Communications Ltd. (HFCL) are some of the domestic players involved in the manufacturing of telecom equipment.

 
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Tech Mahindra & Sterlite seem to have more capabilities than previously estimated(read post #59 above). Tech Mahinda is competing for BSNL 4G tender. Given the interplay between 4G and 5G tech, I wouldn't be surprised if Tech Mahindra is pitching O-RAN 4G to BSNL. O-RAN tech is significantly cheaper than branded tech from the traditional vendors and it allows significant modifications to telecom network which is not possible with branded solutions.

If Tech Mahindra wins the BSNL tender, BSNL along with Jio will be the 2 users of O-RAN in India. That leaves Airtel and Vodafone-Idea, both of which have been bleeding money for a while. Neither of the two have shown any inclinations towards O-RAN, this could land them in serious trouble in the future. Most of the cost of running a telecom network is in acquiring and maintaining the patented tech from traditional vendors. With O-RAN tech, Jio and BSNL wont have this problem. This could lead Jio to put out ultra-cheap 5G data in India while BSNL will probably just be happy with 4G.

Just like ultra-cheap data caused an unprecedented increase in 4G data consumption through out India. Jio with O-RAN could do the same with 5G too.
As I previously speculated :


Jio's plans to build 5G software, deploy Open-RAN to help it cut payouts to vendors: Bernstein

Last month, Reliance Industries Ltd (RIL) chairman Mukesh Ambani had said Jio had developed a homegrown 5G technology solution and planned to offer it to other telcos worldwide, a move that would pit it against the likes of global vendors, Nokia, Ericsson, Huawei and Samsung, in what experts said was the first such initiative by a mobile carrier.

By ET Telecom
August 13, 2020, 12:45 IST
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Kolkata: Reliance Jio’s plans to build its own 5G software stack and embrace Open-RAN techniques will help it save up on hefty premium payouts to existing 4G networks supplier, Samsung, brokerage Sanford C. Bernstein said, adding that the Mukesh Ambani-led telco’s pact with Qualcomm Inc would also help it roll out advanced 5G infrastructure and services.

“It’s possible Jio has managed to build its own 5G software stack and is likely embracing Open-RAN techniques or possibly even Cloud-RAN as an architecture, which would allow them to avoid paying expensive premium to existing equipment providers -- Samsung in Jio's case for 4G -- and potentially allow it to export its expertise to other developing markets that have not yet started to upgrade to 5G,” Bernstein said in a note.

Further, the global push-back on China’s Huawei as a provider of 5G networking components, it said, “could be the catalyst that might allow Open-RAN architecture to gain a stronger foothold into existing operator networks”.

Last month, Reliance Industries Ltd (RIL) chairman Mukesh Ambani had said Jio had developed a homegrown 5G technology solution and planned to offer it to other telcos worldwide, a move that would pit it against the likes of global vendors, Nokia, Ericsson, Huawei and Samsung, in what experts said was the first such initiative by a mobile carrier.

Bernstein though said there would be some external dependence for Jio as most of the semiconductors used to power radio access networks (RANs) are likely to be foreign developed and produced.


The global brokerage though sees a possibility of Jio leveraging the work of TIP (the Telecoms Infrastructure Project), founded by its partner, Facebook.

While Jio, it said, “is not listed as a member of TIP, it is listed as a member of the Open-RAN Policy coalition whose stated goal is to promote policies that will advance the adoption of open and interoperable solutions in the Radio Access Network (RAN) as a means to create innovation, spur competition and expand the supply chain for advanced wireless technologies including 5G”.

The TIP’s objective, the brokerage said, is to develop, test and deploy open, disaggregated, and standards-based solutions that deliver the high-quality connectivity that the world needs, with the aim of connecting the 50% of humanity which remains unconnected.

 
They really ought to hurry up with the schemes. Some countries are already rolling out 5G, although we don't have a lot of use cases for 5G in India yet. Well better late than never. The domestic companies already have substantial manufacturing capabilities. This will boost it certainly.

Govt to roll out PLI scheme to boost domestic telecom equipment production

By Ajith Athrady, DHNS, New Delhi, AUG 12 2020, 19:44 IST
View attachment 17141

The Department of Telecom is working on rolling out a Rs 15,000-crore worth production-linked incentive (PLI) scheme to promote the domestic production of telecom equipment. The DoT is preparing the draft cabinet note to provide financial incentives

The DoT is preparing the draft cabinet note to provide financial incentives to companies that produce 5G telecom equipment. The scheme is expected to be launched in 3 to 4 weeks, said a DoT official.

The scheme's primary aim would be to boost the domestic production of telecom equipment and reduce the dependence of Chinese suppliers.

State-run Indian Telephone Industries Limited (ITI), Sterlite Technology, Tejas Network, and Himachal Futuristic Communications Ltd. (HFCL) are some of the domestic players involved in the manufacturing of telecom equipment.


These incentives might not be enough it seems :


Aaaand this just happened :


:ROFLMAO: :ROFLMAO: :ROFLMAO:
 
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Except the vendors like VVDN already mentioned here, two Indian telecom manufacturers to watch out from :



Both of these companies are involved in the deployment of BharatNet optic fibre network.

Especially Tejas as they have a number of product in the 5G space already. They have been supplying critical network elements to Jio for over 3 years now and have gathered enough industry experience. They also have substantial business abroad and seem ready to capitalise on the restrictions imposed on Chinese vendors globally.


They also get defence contracts :

 
As I previously speculated :


Jio's plans to build 5G software, deploy Open-RAN to help it cut payouts to vendors: Bernstein

Last month, Reliance Industries Ltd (RIL) chairman Mukesh Ambani had said Jio had developed a homegrown 5G technology solution and planned to offer it to other telcos worldwide, a move that would pit it against the likes of global vendors, Nokia, Ericsson, Huawei and Samsung, in what experts said was the first such initiative by a mobile carrier.

By ET Telecom
August 13, 2020, 12:45 IST
View attachment 17147

Kolkata: Reliance Jio’s plans to build its own 5G software stack and embrace Open-RAN techniques will help it save up on hefty premium payouts to existing 4G networks supplier, Samsung, brokerage Sanford C. Bernstein said, adding that the Mukesh Ambani-led telco’s pact with Qualcomm Inc would also help it roll out advanced 5G infrastructure and services.

“It’s possible Jio has managed to build its own 5G software stack and is likely embracing Open-RAN techniques or possibly even Cloud-RAN as an architecture, which would allow them to avoid paying expensive premium to existing equipment providers -- Samsung in Jio's case for 4G -- and potentially allow it to export its expertise to other developing markets that have not yet started to upgrade to 5G,” Bernstein said in a note.

Further, the global push-back on China’s Huawei as a provider of 5G networking components, it said, “could be the catalyst that might allow Open-RAN architecture to gain a stronger foothold into existing operator networks”.

Last month, Reliance Industries Ltd (RIL) chairman Mukesh Ambani had said Jio had developed a homegrown 5G technology solution and planned to offer it to other telcos worldwide, a move that would pit it against the likes of global vendors, Nokia, Ericsson, Huawei and Samsung, in what experts said was the first such initiative by a mobile carrier.

Bernstein though said there would be some external dependence for Jio as most of the semiconductors used to power radio access networks (RANs) are likely to be foreign developed and produced.

The global brokerage though sees a possibility of Jio leveraging the work of TIP (the Telecoms Infrastructure Project), founded by its partner, Facebook.

While Jio, it said, “is not listed as a member of TIP, it is listed as a member of the Open-RAN Policy coalition whose stated goal is to promote policies that will advance the adoption of open and interoperable solutions in the Radio Access Network (RAN) as a means to create innovation, spur competition and expand the supply chain for advanced wireless technologies including 5G”.

The TIP’s objective, the brokerage said, is to develop, test and deploy open, disaggregated, and standards-based solutions that deliver the high-quality connectivity that the world needs, with the aim of connecting the 50% of humanity which remains unconnected.

Jio's plans of offering these systems to other networks will be stillborn. No network would ever commit to buying it's gears from a rival network even if they're not rivals today. I thought Ambani would know better than that which he does. This in turn brings me to the question what exactly is his game plan then.
 
5G trial: DoT may provide spectrum to telecom companies by September

5G testing was originally scheduled for March, but got delayed because of the COVID-19 pandemic.

By Kritika Saxena
Last Updated : Aug 13, 2020 02:18 PM IST | Source: CNBC-TV18
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The Department of Telecommunications (DoT) is expected to provide the spectrum needed by telecom service providers for testing their 5G networks, by September, CNBC-TV18 learns from sources. 5G is the fifth generation technology standard for cellular networks, superior to the 4G networks which currently provide connectivity to most cellphones.

The testing was originally scheduled for March but got delayed because of the COVID-19 pandemic.

"Telecom operators will need six months of testing 5G devices and spectrum before we begin auctions," said a DoT official who did not want to be named. "We are looking at providing the companies with the spectrum for the testing by September so that they can begin the process," the official said.

Will Chinese companies be excluded from 5G Trials ?


CNBC-TV18 had earlier reported that a DoT committee had recommended banning Chinese telecom equipment companies from participating in the 5G trials and the subsequent auctions. The DoT official confirmed that Chinese companies will not be allowed to participate in the trials and auctions. This means that Indian telecom service providers cannot partner with Chinese telecom equipment makers. The two Chinese players with a strong presence in the telecom equipment segment in India are Huawei and ZTE.

"From the companies that had submitted applications in December 2019, we are considering allowing only Nokia, Ericsson and Samsung to participate in the 5G trials;" said the official.

Bharti Airtel had submitted its application to conduct trials in partnership with Samsung, Nokia, Huawei, and Ericsson.

Vodafone Idea had listed Samsung, Nokia, Ericsson and Huawei as its partners. Jio mentioned Samsung as its partner but it also submitted an application to use its own 5G gear.

"Banning Huawei and ZTE from 5G will increase our procurement costs and reduce competitiveness in the 5G space. Huawei had started roadshows in India and has a lead amongst most of its peers in the global 5G ecosystem;" said a senior executive from a telecom operator.

Spectrum for testing to be provided at a subsidised cost

The cost of the spectrum to be provided for testing will be much lower than initially expected. DoT has simplified the testing method and will provide spectrum for demonstration and testing purposes at a nominal charge of Rs 5000 a year. Speaking at a webinar earlier, Kishore Babu the DG at DoT had confirmed that spectrum for testing will be provided through a self-declaration and operators don't need to go through an elaborate approval process.


 

Voda-Idea and Airtel are apparently not interested in 5G spectrum right now because of high price of spectrum & lack of use cases in India. In either case spectrum sales are delayed to 2021.

I remember similar reasons being cited by the then incumbents against deployment of 4G in India. Some industry executives suggested a 100% exhaustion of 3G capabilities before moving to 4G. This lack of initiative made them vulnerable to Jio. I do hope they aren't planning on repeating their history.
Jio's plans of offering these systems to other networks will be stillborn. No network would ever commit to buying it's gears from a rival network even if they're not rivals today. I thought Ambani would know better than that which he does. This in turn brings me to the question what exactly is his game plan then.
I disagree. I can see plenty of opportunities.

Jio is present only in India for now. Airtel is in 18 countries & is a dominant market player in many of them. In other words, plenty of foreign telecom services companies compete with Airtel directly and don't compete with Jio at any level, directly or indirectly. These companies don't seem to have the intention or the financial guns needed to become a telecom player in India.

Jio on the other hand has global intentions and Ambani has made that pretty well known. Partnering with these telecom companies abroad and providing them financial and technological backing will most certainly erode Airtel's market shares in those countries. Which in turn will cause pain to Airtel India in the long run, further solidifying Jio's market position in India.

Traditional telecom gear makers sell tech to many companies in many countries. That's how they recover R&D costs and make profits. While Jio is a telecom service provider and is now getting into their own 5G tech in India, abroad they will approach other telecom service providers as traditional gear makers not as a rival telco.
 
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Traditional telecom gear makers sell tech to many companies in many countries. That's how they recover R&D costs and make profits. While Jio is a telecom service provider and is now getting into their own 5G tech in India, abroad they will approach other telecom service providers as traditional gear makers not as a rival telco.


Jio on the other hand has global intentions and Ambani has made that pretty well known. Partnering with these telecom companies abroad and providing them financial and technological backing will most certainly erode Airtel's market shares in those countries. Which in turn will cause pain to Airtel India in the long run, further solidifying Jio's market position in India.
This dichotomy isn't lost on other telco operators. Ambani could well offer his gears to telcos across the world in a mix of cash upfront + equity stakes. Those with financially sound balance sheets won't even touch Ambani with a barge pole. The others would be vulnerable.

I think I've just found my answer as to what Jio's game plan is for 5th Gen & future generations of mobile telephony across the globe .
 
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From the time RIL chairman Mukesh Ambani visited Korea in 2011 to now, when Jio has 400 million subscribers, Samsung has been a silent sentinel in Reliance Jio’s telecom march. Partly also because the Korean giant had an eight-year exclusivity deal, which has since ended. That may explain why the unthinkable happened last month.

Samsung pulled out all stops to convince India’s state-owned telco, BSNL, to go full-scale on 4G and dump its rickety remnants of 2G and 3G. The telco is tendering for $1 billion to build out a 4G network but it also requires support for its older generation networks—something a 4G/5G-only Samsung cannot provide.

Securing the BSNL contract could be critical to the future of Samsung’s networks business in India. It has earned ~$5 billion from Jio, building out its 4G network from the ground up, but it needs new deals to keep its networks business growing. The group’s mainstay, consumer electronics, has slowed in India.

To build its network, in 2011, RIL wanted a telecoms vendor small enough to play by its rules, but big enough to build out a pan-India network. It signed up Samsung and went to great lengths to make the relationship thrive, even adapting its work culture to better suit the Koreans. Between 2012 and 2016, Samsung’s networks team grew from a few hundred workers to 6,000, including contractual staff. It’s down to less than half that now.

For 5G, though, Jio has said it’d be a DIY + open source network. That may not be entirely possible in the near-to-medium term. Still, it has sent Samsung prowling for deals. It’s putting out feelers. But the next biggest telco, Bharti Airtel, is wary.

On 23 July, executives from Samsung Electronics met with the top executives of Bharat Sanchar Nigam Limited (BSNL). Its pitch to the state-owned telecom operator, which is in the process of setting up a pan-country 4G network, was simple—you have a $1 billion opportunity for telecom equipment vendors, we’re the right company for the job.

To make a case for the South Korean electronics major, Samsung executives used a ten-slide deck, which The Ken accessed. It highlighted the futility of continuing legacy 2G and 3G networks. Instead, Samsung encouraged to redirect all proposed investments to 4G networks. It even handed over a strategy, sourced from a global consulting firm, to transition subscribers to 4G.

The thoroughness of Samsung’s pitch was matched only by its urgency. For Samsung, securing the BSNL contract could be critical to the future of its networks business in India.

The Seoul-headquartered company set sail in India’s telecom infrastructure seas almost a decade ago; its vessel, telecom operator Reliance Jio, which was more concept than telco at the time. Now, though, its voyage with Jio could be at an end. Having built Jio’s 4G LTE network from the ground up, it has seen its role diminished as the telco’s spend on 4G network building is largely complete.

The two companies were locked in an eight-year exclusive contract, which would end in 2020. But in 2019, this was extended by three years, sans an exclusivity clause. With its Jio charter possibly winding to its conclusion, Samsung is on the hunt for its next Indian expedition.

Read more at
 
Tech Mahindra, HCL Tech, Wipro and likes are hoping global 5G race resumes next year⁠ — bringing some large deals before that

By PRABHJOTE GILL
AUG 17, 2020, 09:18 IST
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Indian IT companies are hoping 5G will bring in some large deals as new telecom contracts flow in this financial year

  • Tech Mahindra, HCL Technologies, Wipro and other Indian IT companies will have to wait another two quarters before they see any revenue from 5G spend.
  • The uncertainty caused by the coronavirus pandemic has IT companies hesitant to commit to full 5G network rollout.
  • The rollout of 5G will mean big deals in the offing for Indian IT services companies.

Indian IT companies were betting on 5G to fill their coffers this year until the coronavirus pandemic threw a spanner in everyone’s plans. Even though 5G rollouts across the world have been delayed, IT services firms like Tech Mahindra, HCL Technologies, Wipro and others are betting that 5G is still set to boom — but not before the next financial year.

“5G will happen towards the second half of this year, maybe it gets pushed by six months. That’s where we will probably start seeing some of the operators commit and clearly enter 5G,” Tech Mahindra CFO told Business Insider in an interview.

GlobalData shows that the value and volume of new global IT services contracts are shrinking. The uncertainty around coronavirus has led to operators hitting pause on the full rollout of 5G networks, even if they’ve successfully run trials because they’re waiting for the right time.

But, many deals are already in the works and research firm Omdia estimates that there are 56 deals that are set to come up for renewal in the telecom space before December worth nearly $13.9 billion — including those of Nokia and IBM.

New deals in the making

“In 2025, we believe there will be 2.8 billion 5G subscriptions in the world,” said Ericsson’s APAC CTO Mark Ewerbring. “The total number of subscriptions is even higher at 8.9 billion. So 5G in itself is 31% of the connections,” he added.

HCL Tech is currently in the progress of acquiring Cisco’s self-optimizing network called SAN. “This along with some of the products that we have in the telecom space under our ER&D segment is gradually helping us create a niche portfolio of telecom products which are particularly relevant in the 5G world,” said the company’s CEO C Vijayakumar.

HCL Tech already beat TCS for a $600 million deal with Ericsson — one of the early adopters of 5G — to provide infrastructure management, cloud and application services.

Wipro’s new CEO Theirry Delaporte with his impetus on ‘profitable growth’, is also looking at the potential of 5G not just in terms of communications, but also in other verticals like accelerating the adoption of cloud in different markets.

Gartner estimates that the worldwide 5G network infrastructure market revenue will almost double in 2020 to reach $8.1 billion. For IT services companies, this means bigger deals in the making.

For instance, Tech Mahindra grabbed a $1 billion deal with AT&T Communication last year — its largest deal ever. And, the company is also reportedly working with ITI Limited to create a 4G solution for BSNL that can be upgraded to 5G.

“The way we are looking at 5G is that it will be additional growth. On top of whatever we’re already doing. And that’s what I think we’ll get as a slip into the financial year 2021-22,” said Bhat.

Tensions against China

Bhat believes that geopolitical tension between the US and China won’t play a big factor in the US but could have an impact on other markets. In India, for instance, China’s Huawei and ZTE will reportedly be kept out of the upcoming 5G trials scheduled for September.

India’s actions follow in the footsteps of other countries like the UK and Australia, which have also raised concerns against including Chinese companies in their 5G trials due to data security concerns highlighted by the US.

 
After blocking Huawei and ZTE, Centre plans multi-vendor-led model for BSNL 4G

By: Kiran Rathee | Published: August 16, 2020 7:30 AM

Under this model, the 4G network will be built and managed by a system integrator, which will basically buy hardware and software from different companies like Nokia, Ericsson and other foreign vendors and assemble them.

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Analysts feel that given the poor financial condition of BSNL, trying this new approach will be detrimental, particularly since the company is a late starter in the 4G business.

After cancelling the Rs 8,697-crore 4G tender and blocking Chinese vendors like Huawei and ZTE under new guidelines which prohibit procurement by government and public sector undertakings from companies based in countries which share land border with India, the government is exploring a multi-vendor-led model for rolling out the new network of BSNL.

Under this model, the 4G network will be built and managed by a system integrator, which will basically buy hardware and software from different companies like Nokia, Ericsson and other foreign vendors and assemble them.

This is a new model which is being tried globally and for BSNL, since the system integrator will be an Indian player, it will give the touch of a domestic company having built the network.

Analysts feel that given the poor financial condition of BSNL, trying this new approach will be detrimental, particularly since the company is a late starter in the 4G business.

Most of the private mobile operators have built their networks through turnkey contracts to a single vendor, which after commissioning it also manages it under managed services agreement. It saves cost and improves network efficiency. In the system integrator model, the network will have components of several players, basically by way of assembling, which may increase costs and lead to quality issues or technical glitches.

A DoT committee is finalising the technical details for the rollout of the BSNL network and is expected to submit its report soon.

Recently, the Niti Aayog had recommended that only locally designed and manufactured products should be deployed by BSNL for its 4G roll-out, and the state-run firm should draft its new tender to support local models of equipment.

 
The audacity of it all. I love it. :love:

TEMA appoints VSNL veteran BK Syngal as chairman of 6G Council

Domestic telecom gear makers body TEMA on Friday appointed BK Syngal, founder chairman of VSNL, as the chairman of TEMA 6G Council.

ET Telecom
August 14, 2020, 14:39 IST
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NEW DELHI: Domestic telecom gear makers body TEMA on Friday appointed BK Syngal, founder chairman of VSNL, as the chairman of TEMA 6G Council.

“TEMA feels it is the right time for India to start planning for 6G with focus on technology and domestic manufacturing,” TEMA said in a statement, stressing that 5G technology has not gained much attention across industrial and utility use cases in India.

TEMA said to enable this it has formed the TEMA 6G Council.

“The focus of Telecom is Broadband now and India can take a center stage in the development of future technology like 6G. This would make India Atma Nirbhar in technology and manufacturing both. TEMA has decided to lead this movement and appointed BK Syngal as the Chairman of TEMA 6G Council,” said Ravi Sharma, Chairman TEMA.

Sharma added that the government should commence the policymaking process for 6G to harness the technology and manufacturing strength of the country.

“We are being made zombies by the 5G phobia. We must shift gears to go into 6G or any G by redefining Gs. We need to talk in terms of bandwidth delivery, device applications, etc with always on the internet. 80% of the world is for mixed high bandwidths, a minuscule for high bandwidth when on the move,” said BK Syngal.

“However, we can't force expensive mobility and spectrum guzzlers solutions on fixed users. I am happy to lead the TEMA initiative of TEMA 6G Council,” added Syngal.

“Together with BK Syngal, TEMA is committed to making India one of the leaders in the world for 6G with support from government and other stakeholders,” said NK Goyal, Chairman Emeritus, TEMA.

 
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Eye on China, DoT to direct full network audit by telcos

State-owned telecom companies, BSNL and MTNL, have already been asked to complete such an audit. The two have floated a request for proposal for the audit work.


Written by Aashish Aryan | New Delhi | Updated: August 18, 2020 7:01:02 am
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“There have been reports that Chinese vendors have installed back doors and trap doors in telecom networks of other countries where they have worked on 4G and other older technologies. We just want to be doubly sure there are no such gaps in our networks,” an official told The Indian Express. (File photo)

The Department of Telecommunications (DoT) is set to direct all telecom operators to undertake an ‘information security audit’ of their networks and submit the report by October end.

The objective of the audit, according to sources in the know of the development, is to specifically check for any ‘backdoor’ or ‘trap door’ vulnerabilities in the telecom networks, which can be exploited to extract information and pass on illegally to agencies around the world. A ‘backdoor’ or a ‘trap door’ is a bug installed in the telecom hardware which allows companies to listen in or collect data being shared on the network.

“There have been reports that Chinese vendors have installed back doors and trap doors in telecom networks of other countries where they have worked on 4G and other older technologies. We just want to be doubly sure there are no such gaps in our networks,” an official told The Indian Express.

State-owned telecom companies, BSNL and MTNL, have already been asked to complete such an audit. The two have floated a request for proposal for the audit work. While almost 30 per cent of Bharti Airtel’s network comprises Chinese telecom equipment, it is as much as 40 per cent for Vodafone Idea. State-run Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) also have equipment from Chinese vendors, including Huawei and ZTE in their 3G and older networks.

As far as 5G trials in India are concerned, while Telecom Minister Ravi Shankar Prasad had, in December 2019, said all telecom vendors, including Huawei and ZTE, would be allowed to participate, given the increased scrutiny on Chinese investment and technology, it is unclear now if Huawei and ZTE will be allowed to participate.

After a border skirmish at Galwan Valley in Ladakh the government moved to bar all Chinese companies from India. As a part of its measures, the DoT had asked state-run telcos BSNL and MTNL not to use Chinese equipment for the roll-out of its 4G network. The DoT had then also hinted it would announce guidelines asking even private telcos to refrain from using Chinese equipment. No such guidelines have, however, been issued till now.

Subsequently, the Ministry of Electronics and Information Technology (MeitY) had banned 59 Chinese apps from operating in India, while other ministries of the government also cancelled tenders which had been awarded to Chinese companies. Later, MeitY also banned operations of the lite versions of the Chinese apps.

Under the fresh audit, the DoT may also ask the telcos to get the checking done only by agencies or auditors empanelled with the Indian computer emergency response team (Cert-IN), the officials said. The report, to be submitted by companies, would also detail the corrective measures suggested during auditing.

In January, the US had released a report alleging that Huawei had inserted ‘backdoors’ in telecom networks it had helped build in mobile phone networks in the US and across the world. Subsequently, on June 30, the US Federal Communications Commission (FCC) had formally designated Huawei and ZTE, their parent and subsidiaries as well as affiliate firms, as “national security threats”.

The same day, Federal Communications Commission Chairperson Ajit Pai had, in a webinar, said that countries must be wary of vendors which could bring “digital pandemic”. “Equipment at heart of 5G networks currently comes from just a few global suppliers, and the largest of course right now is the Chinese company Huawei. This has raised concerns given that Chinese law requires all companies subject to its jurisdiction to comply with request from the country’s intelligence services,” had said.

 
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The BharatNet/National Optical Fibre Network(NOFN) is a rarely talked about project and yet it is a crucial one. The Gigabit Passive Optical Network(GPON) used is a C-DOT designed and United Telecoms Limited (UTL) manufactured G.984 complaint network capable of max 2.4Gbits/s speeds. The network is connected to the core internet infrastructure by means of the 4G base stations of the various ISPs(Airtel, Jio et al)

The architecture is as follows:

Core network > 4G base stations > NOFN's GOPN > Optical line terminals > Network terminals > WiFi/FTTH in villages

Core Network :
Submerged intercontinental cables connecting servers/data centres in various countries with each other. The servers/data centres are accessed by means of virtual switching channels. These networks are upgraded and complemented all the time. If user count remains stagnant, adding a complimentary networks will reduce server load. In India's case it was the opposite, 4G adoption led to an explosive increase in data usage within a very short period of time. This exponentially increased server loads and reduced the connectivity speeds that every individual user experienced.

4G base stations : Owned by the Internet Service Providers(ISPs), these stations are the gateway to the internet for every single user. Upgrading from 4G to 5G would require the ISPs to upgrade the hardware & software here. When the ISPs move to 5G the NOFN network will automatically switch to 5G network and improve speed accordingly. If one ISP switches to 5G quicker than the rest their base stations will likely see increased demand and the govt. would have to pay them more.

NOFN's GOPN : Plugged into the base stations, these fibres use the ISPs base stations to allow the users to access the internet. Pretty much like getting a JioFibre or Airtel Xtreme FTTH, except the govt. pays the ISPs and gives users internet access at prices so low(76% less than normal price) that it is commercially unviable for ISPs themselves to do the same.

Optical line terminals : Splitting the optical line by means of passive beam splitter and thus creating a number of Passive Optical Network(PON) terminals.

Network terminals : Sets the throughput rates for a particular locality to stabilize the internet speed across the area and prevent overload on any particular network equipment.

WiFi/FTTH : This is where an individual user get an access to network from.

And the best part the BharatNet is built under the Make in India initiative with no involvement of foreign companies. All components, fibres, terminals, splitters used are made in India. To the end users Broadband speeds are going to be not less than 100Mbits/sec. For most villages that will be more than sufficient for all uses. A move the 5G base station might not even be needed.

Implementation of the project has been patchy at best. Multiple project completion date over-runs. Multiple times the deadlines have been shifted back. This is from a Parliament report by Telecom and IT Minister Ravi Shankar Prasad on 7 Nov 2019 :


State-wise detail:

These are the 5 states with the highest connectivity under the ongoing BharatNet Project:
  • Kerala: 100%
  • Haryana: 99.7%
  • Karnataka: 99.6%
  • Tripura: 90.2%
  • Bihar: 88.29%
These are the 5 states with the lowest connectivity under BharatNet Project:
  • Himachal Pradesh: 7.73%
  • Telangana: 15.25%
  • Sikkim: 19.80%
  • Uttarakhand: 20.30%
  • Andhra Pradesh: 30.08%
State-wise funding from USOF under BharatNet project:

These are the 5 states with the highest funds’ disbursement/utilisation
  • Maharashtra: Rs 1,976.12 crore
  • Uttar Pradesh: Rs 1,561.2 crore
  • Chhattisgarh: Rs 939.22 crore
  • Karnataka: Rs 618.01 crore
  • Bihar: Rs 573.62 crore
These are the 5 states with the lowest funds’ disbursement/utilisation
  • Manipur: Rs 46 crore
  • Kerala: Rs 66 crore
  • Meghalaya: Rs 67.23 crore
  • Tripura: Rs 70.76 crore
  • Nagaland: Rs 74.1 crore

It is worth noting that not even a single gram panchayat has been connected with Optical Fibre Connectivity in Tamil Nadu, under the ongoing BharatNet Project Phase-2. However, in Union Territories (UTs) like Chandigarh, Dadra & Nagar Haveli, Daman and Diu, and Puducherry, all of the Gram Panchayats have been connected with OFC under the project.

While some states have completed 100% of the project, some others are yet to get started. It is hard to state when the project will be completed everywhere, but with the current progress rate it should take at few years to have good levels of connectivity everywhere.

COVID has taken away much of the working days of this year. With the lack of migrant labour it might get harder in many states. This is the more recent picture :


  • August 15, 2020: PM Modi doesn’t announce a deadline for Phase II of connecting panchayats, but says that 6 lakh villages will be connected with optical fibre in 1,000 days, that is, by May 12, 2023.
  • August 17, 2020: 1,42,740 gram panchayats are connected via optical fibre network, as per the Bharat Broadband Network Limited website.

Oh and an optical fibre to the Lakshwadeep Islands is coming up :

Modi also referenced the 400 Gbps undersea cable link, the Chennai-Andaman Nicobar Island (CANI) system, he inaugurated on August 10, through which Andaman and Nicobar Islands have optical fibre connectivity, and set a 1,000-day target for Lakshwadeep Islands: “We are aiming at providing high speed internet connectivity to Lakshadweep islands in the next 1000 days.”

India's average broadband internet speed is around 40 Mbits/sec. Internet penetration stands at 54.29% of the population(~700 million internet users by the end of 2020). 75% of the users are on 4G. The number is projected to be ~1 billion users by the end of 2025. From 2019 to 2020 we added some 120+ million new internet users. With the pandemic and rise of "Work From Home" culture, we might actually hit a billion users before the projected date.


The mobile internet penetration is urban locales are already pretty good and broadband adoption is rising. The rural locales have greater opportunities as it is still an unsaturated market. In 2019, the number of rural internet users overtook the urban. Rural India also has far more people than Urban. Thus a BharatNet like network's utility becomes clear. It is designed to boost internet connectivity in rural India.

While in Urban India, the push will be about adopting Broadband and eventually 5G. The push for Broadband is coming in by bundling of services: TV, Internet, OTT platforms so on, all bundled onto one network by the ISP.
 
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Andaman optical fiber may pitch India as alternative to China in ASEAN region

The project, inaugurated by Prime Minister Narendra Modi on Monday, promises a 2,300-km submarine optical fibre cable network that will connect the islands of Andaman and Nicobar Islands to Chennai.

Updated: Aug 11, 2020 09:14 IST

By Deeksha Bharadwaj
Hindustan Times, New Delhi
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The project launched on Monday aims to provide high-speed internet to boost the island’s capabilities in terms of disaster mitigation, relief work and enable access to high-speed internet connectivity. (Twitter/Narendra Modi)

The submarine optical fibre from Chennai to Port Blair that promises fifth-generation (5G) connectivity, the latest in cellular wireless technology, to the Andaman and Nicobar Islands could be the first step for India to set up an alternative to China for the Association of Southeast Asian Nations (ASEAN) countries to gain international connectivity, experts say.

The project, inaugurated by Prime Minister Narendra Modi on Monday, promises a 2,300-km submarine optical fibre cable network that will connect the islands of Andaman and Nicobar Islands to Chennai. The submarine fibre network is estimated to cost Rs 1,224 crore and a bulk of the fibre being sourced from NEC Corporation Japan, which also provided technical assistance during the installation, said a department of telecommunications (DoT) official.


According to experts, the move will open up a host of opportunities for India in the ASEAN region, where China provides a majority of the submarine optical fibre. “This will open up more opportunities for India to interact with ASEAN countries like Vietnam, Cambodia and Laos,” said Shyamal Ghosh, former secretary, DoT.

“The PM had set up a line of credit to explore such options in 2017, but due to bureaucratic bottlenecks there has been no progress so far,” he said. A DoT official said that the department was working towards connecting neighbouring countries with the fibre, but said it would not fall under the Universal Service Obligation Fund (USOF) project, which is providing submarine optical fibre connectivity in the Andaman & Nicobar Islands.

Ghosh cited that the inability of the countries to provide a sovereign guarantee for the line of credit because private companies mostly run the telecom sector and that proved to be a major hurdle.

“These (ASEAN) countries are also looking for an alternative, as they don’t want to put all their eggs in the same basket,” he said. “In Andaman and Nicobar Islands, the network will provide a stable connection as the previously used satellite was more dependent on the availability of bandwidth, especially because the islands emerge as an important strategic point in the Indian Ocean region (IOR),” he added. RK Bhatnagar, a former technological adviser to DoT, said the submarine network in the second phase of connections could easily extend to countries such as Singapore and Thailand.

“India is already having an offer of $1 billion line of credit for digital connectivity with ASEAN countries. Countries such as Myanmar, Laos, Cambodia, Vietnam can take advantage to have their OFC (optical fibre cable) digital highways connecting to the north-eastern states through a protected ring architecture and extension by 700 km. Myanmar and other ASEAN countries can enjoy better international bandwidth option via the north-eastern states,” said Bhatnagar. He also exuded optimism that the move would be useful after the country graduates to 5G technology.


“The cable system with the incremental submarine of 1,050 km can take connectivity to the nearest port of Thailand. Greater Nicobar, the last Indian island, is less than 175 km from Rando Island in Sumatra, Indonesia. India stands to gain politically if 1,925 km of incremental submarine cable can connect three ASEAN countries such as Myanmar, Thailand and Indonesia. This distance is even less than 2,300 km from Chennai to Andaman and Nicobar islands. The project can be funded through the ASEAN line of credit,” he added.

Both Ghosh and Bhatnagar believe that the extension of the cable network could bring in increased opportunities for trade and revenue generation for the country. “This system route, if extended, to three countries, as suggested along with OFC ring architecture in select ASEAN countries will bring in many more projects for the Indian domestic manufacturing industry,” Bhatnagar said.


The project launched on Monday aims to provide high-speed internet to boost the island’s capabilities in terms of disaster mitigation, relief work and enable access to high-speed internet connectivity. At present, this is the only undersea optical fibre cable network owned by the Indian government.

Private undersea networks already exist in Mumbai and Chennai, some of which the government had partnered earlier before Videsh Sanchar Nigam Limited (VSNL) was merged with Tata Communications.

The project has been completed under the DoT’s initiative USOF, which was set up under the Indian Telegraph (Amendment) Act, 2003. The government, in terms of policy decisions, spearheads the USOF, whose contributors include private players such as DoT licencees Airtel, Vodafone, Reliance Jio and Tata Telecom.

All these telecom companies contribute a mandatory 5% of their licence fee adjusted gross revenue (AGR) to the fund and will now be able to lease the fibre to provide connections in the Andaman and Nicobar Islands.

According to DoT officials familiar with the matter, the USOF collects nearly Rs 8,000 crore annually. The USOF has also led initiatives to connect military and paramilitary forces via satellite connectivity such as Very Small Aperture Satellites (VSAT) in the past. The project aims to establish 1,409 connections in remote areas and has already established 183 of them, said DoT officials familiar with the matter.


Mobile coverage, which is still under the tender process, would also be provided under USOF to remote villages in Andaman and Nicobar Islands, the officials added.



:eek::eek:This is some uncharacteristic levels of foresight shown by the GoI. Never thought I would see strategic thinking on anything from GoI.
 
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