In News:

• Union Minister of Communications, Shri Ashwini Vaishnaw, recently said that the commercial rollout of 5G services could be expected from August-September 2022 onwards.
  
  

What’s in today’s article:

• Evolution of Wireless Tech (Journey from 1G to 5G Network)
  
  
• Advantages of 5G Technology (Low latency, high speed, etc.)
  
  
• Challenges of 5G rollout in India (Major Telecom reforms introduced in 2021)
  
  
• News Summary
  
  

Evolution of Wireless Technology:

• 5G is the fifth generation of wireless technology.
  • To understand 5G, it is important to understand what came before it.
    
    
  
  
  
• Broadly, the first generation of mobile technology, 1G, was about voice – the ability to use a phone in a car.
  
  
• The advent of 2G introduced a short-messaging service.
  
  
• 3G technology provided the core network speeds needed to launch smartphones.
  
  
• 4G, with its high data-transfer rates, gave videos with minimal buffering and gave rise to many of the connected devices and services.
  
  

Advantages of 5G Technology:

• Greater Speed in Transmissions:
  • Speed in transmissions can approach 15 or 20 GBPS (Gigabytes Per Second).
    
    
  • In comparison, 4G offers maximum real-world download speeds up to around 100 MBPS.
    
    
  
  
  
• Lower Latency:
  • Latency is the time that elapses since we give an order on our device until the action occurs.
    
    
  • In 5G the latency will be ten times less than in 4G, being able to perform remote actions in real time.
    
    
  
  
  
• Greater Number of Connected Devices:
  • All connected devices will have access to instant connections to the internet, which in real time will exchange information with each other. This will favour the IOT (Internet of Things).
    • The Internet of Things describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.
      
      
    • It is anticipated that a common home will have a hundred connected devices sending and receiving information in real time.
      
      
    
    
    
  
  
  

Challenges for 5G Roll-out in India:

• Procedural Delays:
  • India’s telecom sector is greatly affected by the procedural delays and their multiple issues.
    
    
  • Companies who faced loss in 2G spectrum scam have clearly left a lesson for other telecom companies sceptical about investing in India in any future telecom projects.
    
    
  • 5G implementation in India will not be a reality until there is a dedicated regulatory body which will develop the roadmap for 5G in India.
    
    
  
  
  
• Affordability of Spectrum:
  • Many countries around the world may already roll out 5G connectivity to its users but, in India, the 5G spectrum is yet to be allocated.
    
    
  • The country’s 5G ecosystem is underdeveloped and has yet to be matured.
    
    
  • The cost of the spectrum is exorbitant and inappropriate for telecom companies, that is why India’s debt-ridden operators are still reeling under the pressure to keep existing 4G network costs low.
    
    
  
  
  
• Last-mile Connectivity:
  • Catering to last-mile broadband connectivity in Tier-II, Tier-III cities and rural homes are challenging since India lacks optical fiber infrastructure and Greenfield deployment which has immensely affected last-mile connectivity.
    
    
  • Under BharatNet Project of the Union government, the plan is to connect all 2.5 lakh gram panchayats across the country to broadband internet.
    
    
  • However, as of February 2022, only about 1.72 lakh of the initially targeted 2.5 lakh gram panchayats had been connected to the central grid under the project.
    
    
  
  
  
• Affordable 5G Devices:
  • On the consumer front, affordable 5G devices are yet to take their place in the market.
    
    
  • The biggest roadblock in India’s 5G electronics manufacturing industry is that it lacks the world-class ‘semiconductor fabricating unit’ which is the notable denominator for device affordability.
    
    
  
  
  
• Network & Security Privacy:
  • Even in the early 80s era, 1G networks saw wireless channels for illegal cloning and masquerading.
    
    
  • As networks and applications evolve further, threats such as semantic information (info which is in some sense meaningful to the user’s system) attacks often target the location data of users.
    
    
  • On the other hand, data collection is another major concern for 5G users as practically all mobile applications demand user’s personal information during or before installation.
    
    
  
  
  

Recent Telecom Reforms:

• In September 2021, the Union Cabinet approved a set of structural and procedural reforms to address the short-term liquidity needs as well as long-term issues of telecom companies. Major reforms that have been announced are:
  • AGR (Adjusted Gross Revenue):
    • AGR definition rationalised and, unlike earlier, non-telecom revenue will be excluded.
      
      
    
    
    
  • Moratorium on Dues:
    • A much needed moratorium has been announced on statutory dues of the telecom sector for four years.
      
      
    • This will improve the cash flow which can be used in more productive areas.
      
      
    
    
    
  • Spectrum Usage Charges:
    • Spectrum usage charges will be rationalized and there will be now an annual compounding of rates rather than a monthly one.
      
      
    • Penalty on payment of licence fees, spectrum user charges and all kinds of charges have been completely scrapped.
      
      
    
    
    
  • Foreign Direct Investment:
    • In a major boost for the sector, the government has increased the FDI in the sector under automatic route from 49% to 100%.
      
      
    
    
    
  • Licence Raj scrapped:
    • Customs notification of 1953 has been done away with. It will allow telecom operators to easily import equipment.
      
      
    
    
    
  • Spectrum sharing:
    • Spectrum sharing has been allowed; telecom operator can share where they deem beneficial.
      
      
    
    
    
  
  
  

Significance:

• The telecom reforms announced by the government are the beginning of a new era for the sector as well as for boosting investment in the industry that is reeling under debt burden.
  
  
• These reforms will help bring alive the digital aspirations of 1.3 billion people and accelerate India's journey to be a digitally powered economy.
  
  

News Summary:

• The government is confident of resolving issues related to high spectrum pricing with the industry, Telecom Minister Shri Ashwini Vaishnaw said recently.
  
  
• He added that everything was “more or less” on track for auction of spectrum, including 5G airwaves, by June 2022.
  
  
• He said the main issue was the industry’s demand for a further reduction in spectrum prices, which would be “deliberated in a logical and systematic manner.”
  
  
• In all, more than 1,00,000 MHz of airwaves have been recommended to be put up for auction.
  
  
• The total spectrum on offer at reserve price is valued at around Rs. 5 lakh crore for 20 years.