Transforming digital infrastructure through Innovations!
Investment to the tune of INR 2.2 lakh core is required in the next five years to build digital infrastructure.Post 5G launch, towercos can unlock new growth opportunities in setting up the digital infrastructure by monetizing existing assets and exploring business adjacencies. The PM GatiShakti National Master Plan is a visionary step to further enhance ease of doing business in India.
India stands in the throes of a digital revolution. Pan-India 5G rollout would transform India into a broadband super-highway and uplift the socio-economic fabric of the country. 5G is expected to lead to a surge in data traffic, which will necessitate upgrading existing networks and build new greenfield ones. The opportunity is ripe to really accelerate digital infrastructure deployment in the country.
5G to necessitate investments in digital infrastructure.
Significant investment is required over the next five years in setting up the underlying digital infrastructure to support 5G launch. This would entail a cumulative investment of INR92,100 to INR141,100 crore during the period 2022 to 2027 in various building blocks of 5G, in addition to macro tower investments.
Network densification will be a key feature to support high-bandwidth applications and surge in data traffic in a 5G network. Towercos’ ownership of shared infrastructure and expertise in Right-of-Way (RoW) makes them ideally placed to deploy small cells. Small cell deployments are expected to increase capacity, improve coverage and energy efficiency while reducing risk of radiation. Street furniture can be utilized to mount small cells for providing telecom services as well. Considering the costs involved, complexity, and time frames for densification of the proposed 5G network infrastructure, there is a need to put in place a mechanism for using the existing street resources for large-scale deployment of small cells.
Increased adoption of low latency and high bandwidth applications has necessitated the need for edge data centers.
- Proactive measures by the Government of India (GoI) to enable a faster rollout of digital infrastructure and enhance ease of doing business
- In August 2022, the government amended the Indian telegraph RoW rules 2016, to enable quicker and easier rollout of digital infrastructure such as small cells and fiber. Furthermore, they have rationalized the administrative fees for telecom infrastructure, which will help in reducing operating cost.
The PM GatiShakti — National Master Plan, with an estimated investment of INR100 lakh crore and bringing 16 Ministries together, is truly a transformative moment for India. Seamless coordination between different government departments is expected to bring in significant efficiencies in delivering projects. For the telecoms sector in India, the PM GatiShakti National Master Plan will be instrumental in boosting the digital infrastructure rollout.