5g ecosystem the digital haven of opportunities · 06 5 ecosystem the digital haven of...

5G Ecosystem The digital haven of opportunities September 2019

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5G Ecosystem | The digital haven of opportunities

01


ContentsForeword 03

Message from CII 04

5G commercial launch in India: Are we ready? 05• National Digital Communications Policy (NDCP) lays the foundation

for next generation 05• Movement/transition of data traffic to 4G 06• Regulatory endeavour for 5G spectrum allocation 06• Progress made on policy front to prepare for a 5G future 08• Efforts to have an indigenous 5G technology 09• Mega cloud push will accelerate change in India’s infrastructure 09

Encircling the seamless – what is the 5G ecosystem? 10• Handset manufacturers geared up for 5G 10• Equipment manufacturers - Key for new business opportunities 12• Infrastructure providers - Expanding the network footprint 13• Mobile network operators - Supporting the 5G ecosystem 14• Rise of application/software providers 22

Digital transformation across industry verticals – no one wants to be left behind 24• Manufacturing 25• Media and entertainment 26• Automotive 27• Government 28

Current 5G ecosystem in India 29

Conclusion 31

Glossary of terms 32

About Confederation of India Industry 33

Acknowledgements 34

Contacts 34

References 35

02


03


Foreword

5G will be a game changer for India with the potential to create significant social and economic impact. As the 5G ecosystem develops in the country, telcos are expected to focus beyond connectivity towards collaboration across the telecom value chain and cross-sector, leading to the creation of new business models and innovation. India is making giant strides towards cross-sector convergence, spearheading digital transformation across industries.

As the nation prepares for the launch of 5G, favourable regulatory policies to develop digital infrastructure are expected to drive investments to fuel the growth of 5G ecosystem. With basic connectivity solutions already in store, more advanced capabilities with cloud, mobile edge computing, complex-converged automation, IoT, artificial intelligence (AI), and augmented and virtual reality, are expected to enable industries to drive efficiencies and unlock the full economic potential of 5G. Investments are being made for the impending arrival of 5G as much in the telecom sector as other industries, such as manufacturing, healthcare, government, and retail.

The adoption of these above-mentioned capabilities, along with next-generation hyper-scale solutions, will not only cause a paradigm shift from traditional services to Everything-as-a-Service (XaaS) but also challenge the existing boundaries of Quality-of-Service (QoS), and personalisation and overall customer experience.

This report presents a view on the following:• Progress made thus far to make 5G a reality in India• Ever-evolving 5G ecosystem and the rise of new value chain players• Telecom value chain and cross-sector player preparations to embrace 5G• Key considerations in facilitating the commercial launch of 5G in India during 2020

Policy roadmap addressing the spectrum, infrastructural, and business challenges, favourable investment climate, indigenous technology development, and customised use cases in the Indian context will help in the timely adoption of 5G in India, realising the industrial internet and digital aspirations across the connected society.

We hope that you find this report insightful and enriching!

Sathish GopalaiahPartnerLeader, Telecommunications Deloitte India

04


Message from CII

5G has the potential to transform our economy. It will enable wireless broadband services to be provided at gigabit speeds, and offer low latency and high reliability to support new types of applications, connecting devices and objects through internet of thing (IoT). It will fuel the development of innovative business models across multiple sectors ranging from transport, health, and manufacturing to logistics, energy, and media and entertainment.

It is an opportunity for operators to move beyond connectivity and collaborate across sectors such as finance, transport, retail, and health to deliver new and better services. It is also an opportunity for industry, society, and individuals to advance their digital ambitions, using 5G as a catalyst for innovation. 5G will naturally evolve from existing 4G networks and it will mark an inflection point in the future of communications, bringing instantaneous high-powered connectivity to billions of devices. It will enable machines to communicate without human intervention in an IoT environment capable of driving a near-endless array of services.

Although 5G will engage a new generation of consumers attracted by innovative services and seamless connectivity, new demands will be placed on finite spectrum resources. We will need greater bandwidth to meet the speed and capacity requirements of an increasingly connected society. Operators must be prepared to meet the challenges of a network designed for both people and machines. Governments and service providers must also be ready to meet demands in the future.

This transformation is not waiting for the launch of 5G. Many digital changes to our society are already underway, using existing networks. However, what additional 5G brings here is the speed, reliability, and spread they will need to reach their full potential in the future. We know where we want to go and how to get there. However, we cannot take our foot off the pedal. We need the continued commitment of industry players, policy makers, and national authorities to complete this journey.

The success of 5G depends on the adoption of common global standards to ensure that all parties can begin using 5G as a platform for innovation soon at the lowest possible cost. We should work closely with members and players across the ecosystem to define the technologies, identify spectrum bands and develop business models and policy initiatives that will bring 5G to life. Through industry collaboration, we can ensure that 5G becomes an evolutionary change with a revolutionary impact.

Umang DasChairman CII Telecom Convergence Summit’19

05


5G commercial launch in India: Are we ready?

In the previous convergence summit held in 2018, CII and Deloitte released first in the series of the thought leadership on 5G, ‘5G – The catalyst of digital revolution in India’. The thought leadership discussed various aspects of the technology, its impact on various industry stakeholders, India’s preparedness, use cases that could transform various industries and society, and implementation challenges. Last year same time, India was planning to launch 5G in line with the global commercial launch.

While the global commercial launch of 5G has been seen in countries such as the U.S., Korea, and the U.K., 5G launch in India is slated for 2020.

National Digital Communications Policy (NDCP) lays the foundation for next generation As we move forward, India aspires to unlock the digital value chain with the recently announced NDCP and 5G India 2020 forum with an emphasis on timely development of 5G infrastructure.

The policy sets directions to lay foundations for the 5G ecosystem to:

• Enhance the digital communication sector’s contribution to India’s GDP to 8%1

• Propel India to become one of the top 50 nations on the ICT development index of International Telecommunication Union (ITU)2

Figure 1: Goals to deliver a 5G-ready future3

Investment for innovation

Strengthen infrastructure setup

Build capability to deliver

• Create a roadmap for emerging technologies – 5G, AI, IoT, robotics, cloud, and M2M

• Encourage the use of open APIs for emerging technologies

• Adequate licensed and unlicensed spectrum for IoT/M2M services

• Ensure the availability of spectrum for 5G in <1 GHz, 1-6 GHz, and >6 GHz bands

• Enhance backhaul capacity to support next-generation networks

• Review industry practice for traffic prioritisation for 5G-enabled applications and services

• Attract investments of US$ 100 billion in digital communications sector

• Create innovation-led start-ups in the digital communications sector

• Create globally recognised IPRs in India

• Increase contribution to the global value chain

• Move towards Industry 4.0

• Develop standard essential patents (SEPs)

• Set up fibre first initiative fiberisation of at least 60% of telecom towers

• Establish a national grid with common service ducts and utility corridors

• Set up common RoW with standardisation of cost and timeline

• Encourage and facilitate active infrastructure sharing

• Establish a global hub for cloud computing, content hosting, and delivery

• Simplify the licensing and regulatory framework (security, data centres, and content delivery networks)

• Establish a centre of excellence for spectrum management, security, and next-generation networks

• Promote and create a fund for R&D in new technologies for start-ups and entrepreneurs

• Promote innovation by fostering the intellectual property rights regime

• Provide financial incentive to develop SEPs

• Simplify the process for obtaining experimental licences and establishing regulatory sandboxes

• Promote design-led manufacturing and strict compliance to preferential market access requirement

Connectivity goals

06


Movement/transition of data traffic to 4GWith 750 million unique subscribers, India has cemented its place as the world’s second-largest smartphone market.4

Figure 2: Transition of data traffic in India across five years over technologies Data usage/volume (in billion GB)5

The year 2018 saw users consume more data in a single month compared with the total data consumed over a period of five months in 2016.

• The continued increase in 4G data consumption has been fueled by the migration of data users from 2G and 3G to 4G. The total volume of wireless data usage increased from 20.09 billion GB in 2017 to 46.40 billion GB in 2018 at a growth rate of 131%.

• 4G data traffic increased by 132%, whereas 3G data traffic saw a de-growth of 1% (YoY).

• 99.7% of the total data traffic, carried over mobile networks in December 2018, was driven by 3G and 4G technology users.

• 4G (LTE) traffic contributed a major part i.e., 86.85% of the total data traffic with a volume of 40.30 billion GB in 2018.

• 4G data consumption has been driven by an increase in 4G device penetration, heavy discounts and offers from telecom operators and OEMs, and a growing digital ecosystem.

Regulatory endeavour for 5G spectrum allocationThe Telecom Regulatory Authority of India (TRAI) had convened a workshop “Enabling 5G in India” in May 2019.6 The workshop gave an opportunity to stakeholders to present and align their considerations for the timely implementation of 5G in India.7 A need for a more harmonised spectrum and moving to higher frequency bands for capacity fulfilment requirements were identified as key enablers.

India is finalising spectrum across the 600MHz, 1.4GHz, 2.6GHz, 4.8GHz, 26GHz, 31GHz, 47GHz, and E and V bands (for microwave – access backhaul traffic). Consensus over these bands will be further shared at the World Radiocommunication Conference 2019 (WRC-19) convened by ITU in October 2019.8

2014 2015 2016 2017 2018

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07

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08


Policy landscape

Progress has been made on policy front to prepare for a 5G future

Figure 3: Policy landscape to steer the growth of digital revolution10

National Digital Communications Policy 2018

National Manufacturing Policy

Preferential Market Access (PMA)Electronics Development Fund (EDF) policy

Draft Cloud Computing Policy

National Digital Communications Policy 2018

Promotes fiberisation and establishing global hub for cloud computing

Promotes effective use of the E and V spectrum bands and promulgation of 5G networks

Aims to set up 10 million Wi-Fi hotspots by 2022 across the rural and urban areas

Establishes a comprehensive data protection regime for digital communications

Draft Cloud Computing Policy

Mandates the localisation of data generated in India

Recommends the development of a “national cloud strategy”

Electronics Development Fund (EDF) and National Manufacturing Policy

Provides companies risk capital to develop new technologies in electronics and IT

The government of India provides a capital subsidy of up to 25% for 10 years

R&D incentives and capital subsidy for promoting manufacturing

Preferential Market Access (PMA)

Provides OEM competitive advantages in government bids and receiving tax benefits

Incentivising private operators to buy domestic telecom products

Promotes the identification of 20 locations for data centre setup

09


Figure 4: Cloud computing spend13

Efforts to have an indigenous 5G technologyITU plans to setup its first innovation centre in India. Ten Indian academic institutions are expected to join ITU; the number is expected to increase to about 40 institutions in the near future.11 Through such initiatives, India is expected to drive inclusive growth to strengthen its R&D capabilities, generate more Intellectual Property (IP), and drive the growth of indigenous manufacturers.

The government’s ‘Make in India’ campaign aims to establish India as a global manufacturing hub by bringing telecom equipment, chip, and smartphone manufacturing to the country. This will further help make 5G an indigenous technology.

Mega cloud push will accelerate change in India’s infrastructure The Indian data centre market is slated to grow at a CAGR of about 9% to reach about ~US$ 4 billion by 2018−2024.12 A key growth driver for data centre is the need for mega cloud environments, which have become commonplace for deploying automation, AI, and machine learning (ML) for driving multiple use cases for 5G service across industries.

Market entry by new players, and investment across new hyper-scale and edge facilities against the backdrop of land, power, water cooling, fibre availability, and data localisation are expected to shape the dynamics of the market over the next three years. India's data localisation bill, known as the Personal Data Protection Bill, is also likely to play a key role in increasing the number of data centres in the country.

Clou

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8

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CAGR 16.5% pa7.2

187

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Year 2018 Year 2022

Cloud spending - IndiaCloud spending - Global

10


Encircling the seamless – what is the 5G ecosystem?

5G technology is expected to give a plethora of opportunities to telecom value chain players willing to increase investments in infrastructure to meet demands for 5G use cases. As 5G technology will be initially built on existing 4G infrastructure (i.e., non-standalone deployments), service providers and other value chain players can work on an incremental basis as a part of the 5G evolutionary process. Telcos are constantly innovating to minimise cost and improve time to market for delivering 5G service offerings. There are multiple cases of partnerships across the value chain to innovate solutions for 5G deployment, which leads to the growth of new business models.

Figure 5: Telecom value chain players across 5G ecosystem14

1. Handset manufacturers geared up for 5G According to a Global mobile Suppliers Association (GSA) report, a device ecosystem should consist of phones, hotspots,indoor CPE, outdoor CPE, modules, dongles/adapters, and USB terminals, (collectively known as form factors). Until June 2019,GSA has identified 13 such form factors, 39 vendors with available or forthcoming 5G devices, 90 announced devices,25 phones, 7 hotspots, and 23 CPE devices.15

Policy and standards framework

Network equipment manufacturers

Wireless device manufacturers

Mobile network operators

Infrastructure providers

Network

Service/ application providers

End users

Application

Wireless chipset manufacturers/

handset manufacturers

Component manufacturers

Electrical Radio

2

3

4

5 6

1

11


Figure 6: Upcoming and existing device ecosystem (Illustrative list)16

Phone

CPE

Hotspot

Module

Dongle

Commercially available

• Samsung Galaxy S10 5G• LG V50 THINQ• Huawei Mate X• Xiaomi Mi Mix 3• ZTE Axon 10 Pro

• Fibocom FG100• Huawei 5G CPE 2.0 (mmWave)• Huawei 5G CPE 2.0 (Sub-6Ghz)• Huawei 5G CPE Win• Huawei 5G CPE Pro

• HTC 5G Hub (US bands)• HTC 5G hub (Europe & Asia bands)• Netgear Nighthawk M5 Fusion

MR5000

• Fibocom FG100• Huawei MH5000• SIMCom Wireless SIM8200-EA-M2• SIMCom Wireless SIM8200G

• Motorola 5G Moto Mod (only on Verizon)

• Oppo R15• Samsung Galaxy Fold• Huawei Mate 20 x 5G• One Plus 7 Pro 5G• Nokia 10

• Inseega R1000• Nokia Fastmile 5G Gateway• Samsung SFG-D0100

To be launched

>10

>15

8

15

3

4

4

16

1

1

12


The Indian telecom industry's major players, including JioPhone, Foxconn, HTC, Huawei, Lava, and Google, have formed The Mobile Association (TMA) that works towards developing the 5G device ecosystem.17

2. Equipment manufacturers - Key for new businessopportunities

• Advancements in network InfrastructureTelecom equipment manufacturers are focusing oncloud solutions such as Cloud RAN (or CRAN) andVirtual-RAN, which involves the virtualisation of RadioAccess Network (RAN).

• Scalable 5G – flexible business opportunitiesTo achieve economies of scale and smoothly transitionto 5G, equipment manufacturers are coming up withsolutions related to 5G spectrum sharing and 5G carrieraggregation.

• Innovation in semiconductors used for developing5G technologiesSemiconductor manufacturers are innovating solutionsfor 5G networks that can be used with 4G technology aswell. With the launch of 5G, China, Japan, South Korea,and Taiwan are becoming hotspots for semiconductors,serving global clients.18 China remains one of the largestconsumers in the semiconductor market. Companiessuch as Samsung and Huawei are creating their ownchips through their subsidiaries Samsung AustinSemiconductor and HiSilicon, respectively.

• Driving partnership projectsThe value proposition of 5G lies in fast data connectivityand new business opportunities that will be enabled byit. To realise new business opportunities, collaborationamong players across the telecom value chain isimperative. Examples of collaborators already in play areprovided:

Reason for collaboration Participating entities ExamplesDevelopment of next-generation hardware management platforms

Network transformation providers and semiconductor manufacturers

• Ericsson and Intel• Nokia and Intel

5G MoU – to operate 5G in the market Network transformation providers and telecom service providers

• Ericsson, along with multiple serviceproviders, such as Bharti Airtel,T-Mobile, and Zain

• Huawei, along with China Telecom, andChina Mobile

Accelerate innovation and digital transformation

Multiple telecom equipment manufacturers and solution providers

• Ericsson and Cisco

Develop 5G business models Telecom service providers and 5G technology solution providers

• Orange and Dell

Cloud computing enabled 5G for scalable solutions

Telecom service providers or equipment manufacturers and cloud solution providers

• AT&T and Microsoft• Nokia and AWS

• Rise of IoT platforms and IoT device ecosystemsThe number of connected IoT devices is forecast to increase at a 10% CAGR between 2018 and 2025. By the end of 2021, thisnumber would exceed other device connections (phones, tablets, PCs, etc.). By 2025, the number of IoT connections will reach~25 billion with smart building and smart home leading the way.20

Table 2: Innovation through collaborations19 (Illustrative list)

13


Figure 7: Growth of IoT connections by 202521

3. Infrastructure providers - expanding the networkfootprint5G networks will need a network of small cells with 5Gantennae placed throughout the city, compared withthe huge, geographically dispersed cell towers of theLTE technology. Infrastructure costs for the networkfootprint could be grouped under the following fourareas:

• Upgrades to the traditional network

• Addition of new macro sites

• Creation of the new 5G layer

• Addition of small cells

As emerging technologies, such as 5G, IoT, and smart cities, will drive massive growth in data transactions, a robust infrastructure would be required to keep systems operational by providing uninterrupted power supply.

Most of this additional infrastructure will likely be built with small cells that use lamp posts, utility phones, or other similar-sized structures that can host smaller, less obtrusive radios required to build a densified network. Tower and Infrastructure Providers Association (TAIPA) is also targeting to deploy diesel-free sites using efficient solutions, such as Li-ion batteries, advanced VRLA batteries, simple power panels, fuel cells, outdoor sites, free cooling units, and solar cooling units.22

Consumer IoT – 5.5 billion connectionsIndustrial IoT – 3.6 billion connections

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14


4. Mobile network operators - supporting the 5G ecosystem

New technologies being adopted by telcos for radio, core, and transport network

To facilitate smooth roll out of 5G, operators need to identify the deployment approach effectively using existing investmentsand best supporting their own business strategies. Telcos/TSPs are making investments in several new technologies toachieve a 5G-ready status:

Figure 8: Enhancements across networks to meet 5G requirements (Illustrative list)23, 24, 25, 26, 27

5G network deployments are primarily service-based architectures (SBA) providing a modular framework where all functions are deployed through open software on generic hardware rather than proprietary hardware-software combination. This is both a significant advantage over legacy wireless networks and a source of vulnerability, as software is more easily subject to malicious attacks exploiting weaknesses. Due to these vulnerabilities, along with the transition to edge clouds, end-to-end security from the mobile core to the edge is a pre-requisite.

The global cloud radio access network (C-RAN) market is expected to reach ~ US$ 14 billion by 2022, at ~21% of CAGR over 2019−2022. Expected growth drivers: reduced costs, improved energy efficiency, spectrum utilisation among others.

Market highlights

Valued at US$ 1.05 billion in 2017, the global massive MIMO market is expected to expand at a CAGR of more than 39% from 2018 to 2026 to reach US$ 20.85 billion. Expected growth drivers: 4.5G technology, improved SNR (signal to noise ratio), link reliability, expected launch of 5G

Radio

TransportCore

5GTechnologies

Cloud RAN

RAN solutions in the cloud provide high scalability to address varying demand for capacity using powerful new capabilities, such as AI (for real-time optimisation) and edge cloud (to improve subscriber experience.

Market Highlights

The global edge computing market is expected to reach US$ 6.96 billion over 2018−2024, growing at a CAGR of 34%.

Massive MIMO

MIMO uses a combination of advanced antennas with a large number of steerable ports to significantly increase the number of transmission points. This increases spectral efficiency and network capacity, and delivers faster data throughput.

Network slicing

Networking slicing is a fundamental building block of 5G core networks, enabling operators to rapidly create custom services by segregating traffic and delivering specific sets of KPIs for each of them. These independent network instances enable service-specific service level agreement (SLA) needs for connectivity, mobility, capacity, security, redundancy, and QoS/QoE.

Mobile Edge Computing (MEC)

MEC is a network architecture that supports computing and storage at the edge of the network, i.e., closer to users, thereby lowering low latency essential for delivering mission critical and massive IoT device ecosystem. Edge technology can be invaluable for the process of machine learning, automation, and big data applications.

The deployment of 5G or multimode small cells is expected to cross the one million mark in 2020 and further increase steeply to reach 5.2 million in 2025. The total installed base count of 5G small cell in 2025 is predicted to be 13.1 million. Expected growth drivers: increasing data uptake, rising high bandwidth required applications, and increasing urbanisation

Small cell

While serving a much smaller geographical area than a macro cell, small cells increase network coverage, capacity, and quality of service to deliver dense coverage and high-capacity network required by 5G.

Software Defined Networking (SDN)

SDN architecture, along with Path Computation Engine Protocol (PCEP) capability, can be used in 5G networks to facilitate ways to automate optimised paths and network redundancy from a centralised control plane and circumnavigating major outages by determining optimal data flows in real time.

Network Function Virutalisation (NFV)

The concept of NFV decouples software from hardware. Using this technology, it is expected that network administrators do not need to invest in high-priced, proprietary hardware to set up a service chain of network-connected devices. Instead, they create virtual network functions that can be installed in a few days or a week instead of months.

The network function virtualisation market is expected to see 42% growth to reach US$ 70 billion by 2024.

Expected growth drivers: Significant capex and opex reduction opportunity, increasing data centres and cloud services, adoption of IoT

15


Figure 9: Security challenges and mitigations28

Deloitte is assisting government and private sector players build telecom infrastructure. It is offering assistance in the following areas: network capex prioritisation, network planning, detailed project report, investment estimations, design and bill of quantities development, and project management to meet connectivity requirements. Deloitte has also been involved in data centre design and implementation, security operation centre (SOC) development, etc., in the telecom infrastructure space.

Deloitte’s engagements also span across robotics process automation, big data analytics, AI and ML design, and implementation for telecom and cross-sector players.

5G spectrum bands

To provide diversified 5G use cases, operators will need spectrum across three frequency ranges − below 1 GHz, 1 - 6 GHz, and above 6 GHz. The 3.5GHz band has been identified as the primary band in many countries as it is expected to be harmonised.

Operators would need to use multiple combinations of bands to provide a wide variety of uses cases as there is a trade-off among coverage, capacity, and latency for each band.

Figure 10: Key characteristics across spectrum bands (illustrative)29

5G security concerns

System vulnerabilities

Data loss & inadequate data

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to potential threats

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5G security resolutions

< 1 GHz

Low band Mid band

24–40 GHz

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• Ubiquitous coverage (outside-in and deep indoor)Characteristics

• Ultra high broadband speed• Extremely low latency

• High capacity• Low latency• Wide coverage

1–6 GHz

• mMTC• eMBBUse case category

• eMBB• eMBB• URLLC• mMTC

• TV broadcasting• Multimedia services• Voice servicesUse case

• Industrial IOT• Fixed wireless access• High-definition cloud gaming• Real-time augmented reality

service

• Environmental monitoring• Smart cities• Mission critical services –

security and safety• Critical IoT applications

• New Zealand• India• Canada• Mexico• Albania

Countries supporting different bands

• Ireland• UK• Spain• China• Italy

• China• South Korea• India• Brazil• Hong kong

• Japan• UK• Spain• South Africa• Australia

• China• South Korea• India• Brazil• France

• Rural areasSuitable area of application • Dense urban areas• Urban and sub-urban areas

16


In India, the regulator has harmonised 700 MHz band and identified 3.5 GHz band for IMT service.30,31 Telecom service providers plan for 4G and 5G deployments in line with the spectrum roll out and the regulator’s harmonisation plans.

Investment requirements for 5G deployment

Cost and investments related to traditional 2G, 3G, and 4G networks, unlike those for 5G, are likely to differ over time and would depend on local conditions. Operators have at least two options. The first involves a lean-in strategy in which they prioritise 5G investments in anticipation of accelerating commercial prospects. The second involves a more conservative method in which they delay 5G investments as long as possible while existing networks are upgraded. Even if operators delay 5G investments, they

will have to increase infrastructure spending to cope with increasing traffic.

In the Indian context, both the strategies are being seen to be deployed by telcos. While Reliance Jio focuses on a lean-in strategy, other telcos seem to be having a more conservative outlook. With debt-laden financials, telecom service providers (TSPs) are in dilemma to meet the capital needs of network expansion. Private telcos are now attempting to monetise on the fibre opportunity through fiberco and towerco separations, thereby trying to deleverage a big chunk of their (overall) debt and making themselves asset-light. Fund raising is also for the need to expand 4G networks and make them 5G ready. Hence, the network expansion is already underway to expand 4G networks and lay the foundation for 5G in the near future.

Figure 11: Network infrastructure transformation of telco-fiberco separation (illustrative list)32, 33, 34, 35

Deloitte has been assisting telcos in the innovative structuring of hived off businesses such as Investment Infrastructure Trust as part of tower and fibre assets separation. This helps drive investments in infrastructure. The company is also helping telcos in separating business plan development for valuation, asset valuation, potential operating model, plan for monetisation, and separation advisory.

Net debt: ~US$ 15.65 billionTowers: Bharti Infratel and Indus merger (163,000 towers)Fibre: 246,000 route KMs

Net debt: ~US$ 16.44 billionTowers: Bharti Infratel and Indus merger (163,000 towers)Fibre: 156,000 route KMs

Net debt: ~ US$ 22.06 billionTowers: 220,000Fibre: 300,000 route KMs

Bharti AirtelBharti Airtel is in the last stages of transferring its optical fibre cable network to its wholly owned subsidiary, Telesonic Networks Ltd, by way of a slump sale.

The objective of this transaction is to have a truly independent fiberco with ability to monetise the fibre assets and also avoid duplication of capex.

Bharti Airtel and Vodafone Idea Limited are likely to announce their optic fibre combined entity, which will be an Infrastructure Investment Trust (InvIT).

Network infrastructure transformation of telcos - fibercoseparation

Vodafone Idea LimitedThe segregation of fibre assets sets the stage for VIL to engage in active discussions with potential buyers, which could culminate in a fast-track hive-off of the fibre business.VIL’s fibre network asset has been estimated to be US$ 0.43−0.45 billion.

Reliance JioThe transfer of control of assets has been done to two InvITs – Digital Fibre Infrastructure Trust and Tower Infrastructure Trust, which is set up by a wholly owned unit of Reliance Industries (RIL).

Incremental capex related to network infrastructure will also be made by InvITs, which will reduce Jio’s capex intensity and strengthen its balance sheet.

17


Figure 12: Business models evolving through cross-sector alliances and partnerships (illustrative list)36, 37

Partnerships and alliances for monetisation

5G monetisation can be tricky and many service providers are struggling with how to monetise 5G use cases. Effective monetisation of 5G use cases among other things, demands agile, low-latency high-performance networks and supporting systems based on modern software methodologies.

New business models are seen to be evolving with cross-sector partnerships to provide IoT services to retail and enterprise customers. To meet the demand for high quality-of-service and high-definition content, telecom service providers are partnering with content data network (CDN) and over-the-top (OTT) players.

1) Offering end-to-end IoT solution to enterprise andretail consumersTelcos are partnering with IoT device OEMs to offer end-to-end solutions to enterprise and retail consumers, with

LTE-A and 5G being underlying technologies for end-to-end connectivity.

2) Rise of content partnership among telcos and CDN/OTT playersTo boost revenues, there has been a significant upswing inpartnerships between telcos and CDN/OTT players in Indiaand globally to provide exclusive video content, games,music, etc., to former’s subscriber. Moreover, contentproviders are promoting their platforms aggressivelythrough a two-pronged strategy.

a. Allow initial free usage to enable customer toexperience platforms and content consumption.

b. Incremental premium fees at a later stage afterconsumer behaviour is in favour.

Global• AT&T acquired Time Warner and HBO to bring premium

content direct to consumer distribution (D2C) using high-speed networks to provide differentiated, high-quality, mobile-first entertainment experience to customers.

• Verizon acquired AOL and Yahoo, and combined Yahoo’s internet assets with AOL’s business to create Oath, an integrated AOL-Yahoo operation, to enhance their capabilities in content provision and drive data business growth

• British Telecom (BT) signed a deal with Amazon to have Amazon Prime Video app available via the UK telco TV set-top boxes.

• Telefonica and Netflix formed a global partnership to integrate Netflix’s service into Telefonica’s TV and video platforms across Europe and Latin America.

• France based Orange, established its own original content services to create content, which it makes available on a wholesale basis and not just to its own customers.

5G-enabled smart office solutionSK Telecoms partnered with Samsung and Cisco to provide a 5G-based smart office solution offering customised mobile enterprise phones, collaboration solutions, mobile-oriented business environments, and 5G network services per client requirements.

PoS (point-of-sale) machines (unorganised sectors)Reliance Jio bundled Jio Mobile PoS device with Reliance Jio mobile 4G network services to connect the unorganised retail industry to its 4G network. Reliance’s subscribers can use the service to order supplies.

India• Vodafone Idea partnered with digital content provider SonyLIV

to provide access to SonyLIV exclusive digital content across all genres to Vodafone Idea subscribers. Vodafone Idea also collaborated with OTT player ZEE5 to offer a content portfolio of ZEE5 to Vodafone Idea subscribers.

• Airtel and Netflix formed a strategic partnership wherein select Airtel postpaid and broadband subscribers received free subscription of Netflix for three months and Airtel postpaid subscribers can pay for Netflix in their Airtel bills.

• Reliance Jio picked up a significant stake in home-grown content providers, such as Eros International and AltBalaji, in content sharing deals.

• DTH operator Tata Sky partnered with Amazon to launch a platform ‘Tata Sky Binge’, which aggregates digital contents from multiple apps.

Connected carsMG Motor partnered with Cisco, Microsoft, and Unlimit to come up with their first internet car with the advanced connectivity system, which is a complete integrated solution that combines hardware, software, connectivity services, and applications with the first of its kind machine-to-machine sim.

Surveillance in commercial and residential buildingsTelcos in India are partnering with CCTV OEMs like CP Plus and Kent CamEye to provide surveillance services which are now an important compliance for every residential and commercial buildings from security point-of-view.

Content Partnership between TELCOs and CDN/OTT players

End-to-end IoT solution to Enterprise and Retail consumers

18


Innovative products and services (cloud-based infrastructure enabling micro-services)

For the effective monetisation of business models revolving around 5G network, telcos would need to act as an intermediary to enable 5G network connectivity, agile network infrastructure, and different types of bundled service offerings. Telcos are also seen realising the importance of picking the right partner and systems for such network transformation.

• Telcos will have to transit to a micro-service model(instead of a traditional monolithic model), whichis expected to have multiple benefits, such as rapiddeployment, autonomy of application offering lowercapex and opex, agility, dynamic extendibility, and servicescalability through the deployment of cloud-basedinfrastructure.

• Telcos will have to upgrade or migrate their networks tomodern day systems, which are more software-driven,

on generic hardware that allows greater flexibility. This is expected to significantly reduce time-to-market and deployment cost as systems are configured on generic hardware using a high degree of automation. This helps further reduce costs and ensure faster resolution of issues.

• Telcos are expected to evaluate benefits of transitioningtheir existing network for 5G deployment vis-a-visgreenfield deployment of 5G network to keep up withmarket competition.

• Telcos are looking forward to introduce innovative productsand services through cross-sector collaboration with OEMs,software vendors, and cross-sector partners. In the 5G era,the B2B2C business model is likely to be more prevalentwith telcos providing connectivity, platform, analytics, andAI, IoT, and AR-VR solutions across sectors.

19


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22


5. Rise of application/software providers

5G is seen catalysing significant changes in thetelecommunications infrastructure by increasing theadoption of open source software, non-proprietaryhardware, and encouraging multi-vendor collaborationto build programmable software-defined infrastructurecapable of delivering critical services.

These services could be delivered over 5G infrastructurewith minimal hardware and software to be owned.Future networks, increasingly relying on software, areexpected to accelerate the pace of innovation and lower

entry barriers for new players. This will lead to a shift in paradigm, where the main value propositions will be in software solutions and the business model will be OPEX-oriented.

Downstream application scenarios with a mature technology and a high economic value are likely to be given priority in the implementation of 5G network. More technical barriers are expected to be broken down over time. As a result, 5G-based downstream applications will cater to new emerging use case scenarios, creating higher economic value.

Figure 14: Application implementation timeline (estimated)39

Econ

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Technical difficulty of application scenarioEasy

High

Smart life

Smart production

Smart city

L5 intelligent driving

Production scenarios

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Remote maintenance and inspection robots

Life scenariosIntelligent power distribution system

Agricultural drones

High speed railways communication and entertainment

Remote equipment operating system

AR/VR immersive entertainment

Commercial vehicle platooning

Outdoor logistics robots

Assisted tele-surgery



AR/VR based education and shopping

4K/8K HD videos

Mobile HD monitoring

Logistics drones


Connected homes

Smart traffic control system

Long term

(2026–2030)

Mid term

(2022–2026)

Short term

(Present–2022)

23


Figure 15: XaaS models (illustrative)41, 42

The planned rollout of 5G wireless technology by telcos globally offers at least US$ 10 billion business over the next six years to India’s information technology (IT) services companies. This new technology spend by telecom firms on software and services could bring more than US$ 1.1 billion in incremental revenue over the next three years for the country’s five largest companies − Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Wipro Ltd, and Tech Mahindra Ltd.40

The XaaS model has some detriments that mobility and enterprise service providers have to consider:

a) Need more lab trials to resolve interoperability issuesamong different ecosystems

b) SLA delivery of 99.999% service uptime may not beguaranteed considering limited maturity

c) Security and privacy concerns considering dependency onanother company

d) Government and regulatory organisation’s stand on XaaSis still unknown

e) Workforce has to be reskilled with new technologies

Use cases (Illustrative)

This model offers different types of communication solutions to enterprise customers. These solutions are hosted on service provider’s or vendor’s cloud infrastructure.• VoIP (voice-over-

internet protocol)• IM (instant

messaging)• Chat box and

video conferencingservices

Content-as-a-Service is one of the fastest-growing services in XaaS categories. CaaS would help organisations manage data repositories and optimise application agility.

Virtual network infrastructure through network slicing feature can be used by incumbent service provider to deliver a virtual wide area network for new enterprise or service provider companies.

DPaaS enables organisations to secure their data for long-term retention requirements and helps with quick recovery to avoid business interruption.

A data lake is a centralised repository that allows organisations to store structured and unstructured data at any scale, enabling different types of analytics (such as big data processing, real-time analytics, and machine learning for effective decision-making).

Microsoft, Cisco, and Avaya offer unified communication service on cloud to serve end-to-end enterprise communications. The market spend across Global Unified Communication will increase at a 2.6% CAGR to reach US$ 46.4 billion by 2023.

Worldwide content services software revenue totalled ~US$ 10.7 billion in 2018, an increase of 11.7% from 2017. At present, top vendors in content services are Microsoft, OpenText, and IBM with a combined share of 40.7% in 2018, whereas Hyland, Google, and Alfresco Software had the highest growth with 43.8%, 26.8%, and 23.3%, respectively.

Communication service providers (CSPs) have been deploying a range of new software-based virtual networking services. Operators such as AT&T offers SD-WAN services based on VMware (formerly VeloCloud), with POP-based gateways to improve performance and scalability, along with simplifying migration.

Solution providers, such as Hitachi Vantara, provide data protection-as-a-service, which includes recovery copy, long-term retention, and disaster recovery. The market for security software increased annually to about 9.7% in 2018, touching US$ 36.3 billion in revenue (attributing to an increase in demand for data security-as-a-service offerings).

Various technology giants, such as Amazon and Google, offer data lake as a service. Google Cloud Platform include BigQuery, a serverless, managed data warehouse offering; allows customers to address a wide range of use cases (from the traditional data warehouse to data science use cases) by integrating ML capabilities in BigQuery ML, and integrating them in Cloud Dataflow.

Unified Communication-as-a-

Service (UCaaS)

Content-as-a-Service (CaaS)

Network-as-a-Service (NaaS)

Data Protection-as-a-Service (DPaaS)

Data Lake-as-a-Service (DLaaS)

24


Figure 16: Economic efficiency of 5G investment (in US$)44

Digital transformation across industry verticals – no one wants to be left behind

The launch of 5G-enabled technologies is expected to cause ripples of transformation in the telco and other industries by unlocking various disruptive new technologies.

Global investment in the 5G industrial chain over 2020−2035 is likely to reach US$ 3.5 trillion. More than US$12 trillion sales are expected to be generated by global industry applications driven by 5G technology. Manufacturing is expected to realise maximum benefits across sectors.43

Industry

More than 20 trillion Manufacturing

Information and communications

Construction

Finance and insurance

Logistics

Agriculture

Real estate

Education

Energy

Health

Others

Wholesale, retail, and entertainment

Public services and utilities

More than 10 trillion



Below 2 trillion

5G-enabled outcome

25


The 5G technology will enable deployment of several technologies in the near, mid, and long term. This would benefit cross-sector industries by increasing their business intelligence, effectiveness, and efficiency.

Manufacturing

With a move towards 5G enablement, intelligence would be imparted in the manufacturing ecosystem through connected devices, real-time data, high-end analytics, and automated environment. This would further accelerate the adoption for Industrial IoT, realising the potential and opportunities across the Industry 4.0 transformation.

This technology also provides an opportunity to setup 5G private networks across factories or industrial workplaces to offer differentiated services, enabling a connected intelligent environment with high quality of service over ultra-reliable low latency networks.

Figure 17: New technologies to support process improvement and product development45

Figure 18: 5G characteristics unlocks key applications of Industry 4.046

Manufacturing industries in India have already embarked on the journey of digital transformation. With favourable government policies, 65% Indian manufacturing companies are expected to have considerable levels of digitalisation by 2020.47

Deloitte has been providing support to build a Factories of the Future (FoF) using advanced analytics, IoT, voice, and RPA capabilities for several clients across the globe. The company’s focus is on digitally transforming manufacturers’ production operations. Deloitte achieved substantial benefits of process improvement through real-time asset tracking, dynamic scheduling for inventory synchronisation, constraint management, WIP monitoring, etc.

Network feature has major responsibility for goal achievement

Network feature has medium responsibility for goal achievement

Network feature has minor responsibility for goal achievement

• Internet of things

• Interface ofthings (AR/VR)

• Advance roboticsand cognitiveautomation

• Artificialintelligence

• Advancedanalytics

• Blockchain

• Cyber security

• Internet of things

• 3D printing

• Advancedmaterials

• Digital design,simulation, andintegration

• High-performancecomputing

• Advancedrobotics andcognitiveautomation

• Interface ofthings (AR/VR)

Technologies for process

improvement

Technologies for product

improvement

Smartlogistics

Collaborationrobots

Smartmaintenance

Predictivebig dataanalysis

Industrialcontrol

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Onlinemeetings

Wireless connectivity

High bandwidth

Increased connected devices

Low latency

High reliability

Network slices - QoS

Easy to deploy

Deployment to special sites, e.g., below ground

Pay as you use

Network Feature

26


Figure 19: Increasing online video audience in India (in millions)48

Figure 20: Global IP traffic by application type51

Deloitte helps enable the vision of AR for futuristic content management for its telecommunication clients by prioritising AR capabilities, developing an AR capability framework, and defining AR architecture for potential opportunities.

Media and entertainment

The roll out of 5G is expected to pave the way for new product and services offerings in the media and entertainment industry that would satiate the rapidly changing customer preferences.

For the past few years, we have been witnessing exponential growth in data consumption driven by video streaming. India is projected to become one of the top 10 global OTT markets to reach a size of US$ 0.82 billion by 2022.49

Customers are seen to be increasingly preferring high-definition content, immersive experience through AR/VR, and distributed content. Changing customer preference, coupled with higher disposable income, is expected to result in significant data uptake in the near future in India.

At a global scale, data uptake is expected to increase. With about 26% CAGR, video streaming is expected to contribute about 80% to the total data consumption by 2022.50 As HD video is becoming the most preferred and smartphone adoption is increasing, 5G is expected to be the game changer and satisfy the changing customer preference.

FY19P FY20P FY21P FY22P FY23PFY18E

325400

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400

350

300

250

200

150

100

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50

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File sharing (7%, 2%)Wed/Data (17%, 12%)

IP VOD/Managed IP video (20%, 11%) Internet Video (55%, 71%)

Gaming (1%, 4%)

27


Automotive

Aligned with the global trend in developed countries, India’s mobility strategy is seen to be shifting towards a shared, electric, and connected paradigm. In this space, considerable impact has already been witnessed with more intelligent vehicle features being provided with new car models.

Innate technology capability, a robust data privacy and security framework, and a growing start-up ecosystem in India, are expected to be the key pillars in the growth and adoption of connected intelligent vehicles. This will result in a seamless integration of the Vehicle to Everything (V2X) ecosystem.

Figure 21: Seamless integrated mobility of future52

Deloitte has been supporting players to create next-generation connected vehicle platforms. The support ranges from creating a globally standardised digital communication module (DCM) hardware to establishing global telematics service and big data management capabilities. The connected car platforms would enable the fast delivery of customer-centric services, high services scalability, and seamless inclusion of external partners and developers via an open API.

At a global scale, major auto manufacturers have partnered with telcos and other application providers to lay the foundation for the connected ecosystem.

Energy network

infrastructure,autonomous

vehicle

• Data on passenger and goods movement acrossgeographies

• Real-time passengers and cargo utilisation

• Cross-modal usage data for passengers and goods

• Infrastructure and regulatoryconstraints

• Pricing rules and limits

• Multimodal optimisation of capacity for passenger and goods movement

• Dynamic pricing across modes

• Real-time decisions and traffic optimisation

• Active monitoring, detection, and reaction to safety risks

Policy and governance,

consistent standards,fiscal support, and

insurance

Data exchanges, integrated platform, seamless billing and

payments, dynamic supply demand management, dynamic routing

5G + secure digital infrastructure, real-time analytics,

intermodal management, connected sensors

Physical

Potential inputs Potential outputs

Digital Rules

Foundational SIMSystem elements

28


Building smart cities policy framework, strategy

Government

India is at the 48th position in the IMD digital competitiveness ranking across 63 economies, with the US topping the list. Over the years, India has been behind major global economies in terms of digitisation. However, it now has a conducive environment to promote investments, and policy support to increase the digital footprint.53

The effectiveness of digital adoption, access to cutting-edge technologies nationwide, and digital transformation is expected to lay the foundation to achieve the notion of

maximum governance with minimum government. With scope of digital opportunities, India is one of the fastest adopters of digital transformation opportunities globally.

The government of India has been taking various initiatives to build the nation’s digital infrastructure to transform the services provided and facilitate digital empowerment of citizens. True sense of e-governance with the remote delivery of services and minimisation of human involvement could be achieved following the launch of 5G ecosystem.

For various government departments; Jan-Dhan Aadhaar-enabled public distribution system

e-governance strategy andmaster plans

Smart city initiatives

For national e-governance division under digital India programmeKnowledge management and learning management system

For public cloud security programmesInformation security services

As part of BharatNet initiativesFacilitated fibre roll out across various states

For e-health initiatives Strategy and programme management support

Deloitte has been helping national and state governments with their operations and modernisation of their systems across e-governance, data warehousing, analytics, cyber security for effective functioning, and citizen engagement, including the following:

29


Current 5G ecosystem in India

India is no longer seen to be adopting the wait and watch approach. It has stepped up its efforts for 5G commercial deployment in sync with the global timelines. Through building partnerships, R&D investments and network trials, industry-specific service requirements are being currently assessed that will require high data-rate communication, low latency, and massive connectivity for e-health, autonomous vehicles, smart cities, smart homes, and IoT services. 5G is being seen as a likely game changer for India, with the potential to create an economic impact of more than US$1 trillion by 2035.54

• Backhaul backingThe current telecom infrastructure in India will requirea rapid expansion to support the launch of 5G. Theimplementation of mobile infrastructure policy inthe federal governance structure, and the country’sfiberisation level are some of the key challenges in making5G a reality. To meet high throughput and low latencyexpectations from 5G technology, a strong backhaulnetwork supported by large-scale site fiberisation is akey enabler. India has less than 30% of the telecom sitesconnected through fibre55. Complex, cumbersome, andcostly Right of Way (RoW) has been a big bottleneck fortelcos in rolling out fibre nationally.

On the microwave side, E band (71-76 GHz paired with81-86 GHz) could emerge as a key band for rapid andeconomical deployment of high-capacity backhaul,particularly in dense urban routes where installing fibrecould be a challenge. The timely allocation of the E and Vbands to deepen broadband penetration in the countrywill be crucial for 5G rollout.

• Substantial investments and managing margin pressureIndian telcos are making significant investments inboosting LTE-A capacity and readiness for 5G by:

– Ramping up BTS sites fiberisation to deliver gigabitcapacity per site

– Deployment of MIMO and small cells for coverage gaps,along with delivering more bandwidth

– Migration of core networks to cloud architecture forservice agility

– Transformation of IP transport for software definednetworking

With current advancements in 4G/LTE technology, and 5G spectrum and densification needs, the industry might need additional investments of US$ 60–70 billion to seamlessly implement 5G networks.56

• Spectrum availabilityThe Department of Telecommunications (DoT) may planto hold auctions for 5G across four bands − premium700 MHz, 3.5GHz, 24GHz and 28Ghz. At present, a highreserve price for 5G spectrum at US$ 0.07 billion per MHzcould become a significant deterrent to the 5G roll outplans57.

• Need for small cellsThe network deployment of small cells at every 200−250metres on street infrastructure, including electricitypoles, street lights, metro pillars, rooftops of publicbuildings, and traditional macro towers to create ahyper dense network for 5G is required. However,small cell deployment by telcos in India continues to beminimal. Industry estimates suggest that the currentcapacity would have to be increased at least 6−10 times,depending on the city, to derive the benefits envisaged.Needless to say, this will not be easy, due to thecumbersome approval process for putting up small cellson street infrastructure and cost considerations.

• Device ecosystemA significant number of 5G-enabled mobile handsets,primarily in the premium price segment will be soonavailable in India. Mobile handset OEMs, such asSamsung, Huawei, OnePlus, and Xiaomi, have announcedthe launch of their 5G compliant devices in India.However, to increase the adoption of 5G, the mid-to-lowprice segment for 5G-enabled handsets would be criticalfor the Indian market.

• Security and privacy complexitiesAt present, anything that is data based carries a securityrisk. Unlike the previous wireless network generations,the security risks with 5G are expected to be morecomplex as the connectivity is likely to move beyondsmartphones to billions of connected devices (cars,sensors, equipment, appliances, etc.). A complementingrobust security ecosystem would need to be deployed

30


for 5G rollout. It is critical to understand the challenges posed due to these evolving technologies, and implement policy frameworks to secure the connected ecosystem.

The need of the hour is to enable timely implementation of 5G:

• Reasonable spectrum pricing with relaxed payment terms

• Timely allocation of spectrum (E and V bands, andmillimeter Wave)

• Policy framework enabling extensive fiberisation(including ROW) and incentivisation to share fibrenetworks

• Push for “Make in India” manufacturing for 5G equipmentand handsets

• Tailor made 5G use cases and applications enabledthrough active trials through spectrum availability fortests

• Indigenous technology advancements through R&D, andIPR development for standards, technology, spectrum,and security

• Well-defined cloud, security, IoT, and policy framework

• Public-private partnerships for broadband growth andpenetration, 5G trials and testing, network densificationamong others

While the government’s enthusiasm to get onto the 5G bus at the earliest is encouraging, answering the underlying question is important – is the industry ready to drive the big revolution?

31


Conclusion

Deloitte believes that telecom service providers would continue their preparations, such as strengthening their 4G infrastructure and ensuring nationwide coverage, for the impending arrival of 5G. To make 5G a reality, Telcos will need to make significant investments in various areas, including 5G spectrum, fiberisation and microwave backhaul, network densification (small cells, HetNet), and network transformation (cloud RAN, SDN/NFV, and automation). Cross-sector convergence would continue across the telecom and media, manufacturing, health, education, government, and other sectors. This will result in innovative business models, products, and services. Telecom value chain players will focus on partnerships to fill niche roles in the value chain, leading to the creation of new intermediaries, such as application/software providers, and sensor/component manufacturers.

Telecom service providers are likely to take a conservative approach and build their 4G networks with a view to complement it with 5G in select geographies. Collaboration across industry to develop unique and relevant use cases for the Indian market to spur demand would be a key demand driver.

Building service-oriented architecture (SOA) with virtual network services and features (such as multi-tenancy, elasticity, and on-demand service provisioning) is expected to further give rise to solutions and “XaaS” models. These solutions will help explore opportunities to offer differentiated QoS, configuration, and interfaces to industry verticals based on specific use cases. New intermediaries focused on connectivity, service differentiation, content, and application would be critical to accelerate the pace of digital

transformation. 5G networks deployments are expected to be deployed through open software on generic hardware rather than proprietary hardware-software combination. This is likely to form a source of vulnerability as open software is more easily subject to malicious attacks. Due to these vulnerabilities, along with the transition to edge computing, end-to-end security from the mobile core to the edge would be essential.

Deloitte is of the view that a favourable policy framework to enable the following would be key to fulfil the 5G dream and develop an ecosystem of billions of connected devices:

• Expedite fiberisation and network densification

• Ensure sufficient and affordable spectrum to expand telconetworks

• Reforms on telecom sector taxation and levies

• Information security, cloud, IOT, and other new generationtechnologies standardisation and implementation

• Providing low-cost and high-quality 5G mobile devices, andtelecom equipment in the market through the Make in Indiainitiative

Availability of affordable 5G-enabled smartphones would be crucial for 5G adoption. The early adoption of 5G offers a rare opportunity to India to contribute to developing an inclusive and indigenous technology. The country can contribute by building R&D capabilities, developing home-grown intellectual property, and design-led manufacturing. Supported by the existing talent across the IT industry, India can bolster existing ICT products and leverage not only the domestic demand but also can cater to the needs of other emerging countries with favourable market-access policies.

32


Glossary of terms

Term Description Term Description

3-D Three Dimensional MHz Mega Hertz

3G Third Generation MIMO Multiple-Input and Multiple-Output

3GPP Third Generation Partnership Project ML Machine Learning

4G Fourth Generation Mn Million

4K 4,000 pixels mMTC Massive Machine Type Communication

5G Fifth Generation MoU Memorandum of Understanding

AI Artificial Intelligence NDCP National Digital Communication Policy

API Application Programme Interface NFV Network Function Virtualization

AR Augmented Reality ODM Original Design Manufacturers

B2B Business to Business OEM Original Equipment Manufacturer

B2C Business to Customer OPEX Operational Expenditure

Bn Billion OS Operating System

BTS Base Transceiver Station OTT Over The Top

CDN Content Delivery Network PCEP Path Computing Engine Protocol

CII Confederation of Indian Industry PMA Preferential Market Access

CPE Customer-Premises Equipment PoS Point of Sale

CRAN Cloud Radio Access Network QoS Quality of Service

D2C Direct to Consumer R&D Research and Development

DCM Digital Communication Model RAN Radio Access Network

DDoS Distributed Denial of Service RoW Right of Way

DoT Department of Telecommunication RPA Robotic Process Automationw

DTH Direct To Home SBA Service Based Architectures

E&V E and V band spectrum SDN Software Defined Networking

EDF Electronics Development Funds SEPS Develop Standard Essential Patents

eMBB Enhanced Mobile Broadband SLA Service Level Agreement

EMS Element Management System SOA Service-Oriented Architecture

FoF Factories of the Future TAIPA Tower and Infrastructure Providers Association

GHz Giga Hertz TCO Total Cost of Ownership

GSA General Services Administration TMA The Mobile Association

ICT Information & Communications Technology TRAI Telecom Regulatory Authority of India

IM Instant Message TSP Telecom Service Providers

InVITs Infrastructure Investments Trusts uRLLC Ultra-Reliable-Low-Latency Communication

IoT Internet of Things US United States

IP Intellectual Property USB Universal Serial Bus

IPR Intellectual property rights USD United States Dollar

IT Information Technology V2X Vehicle to Everything

ITU International Mobile Communications VOD Voice Over Data

Km Kilometres VoIP Voice over Internet Protocol

Li-ion Lithium Ion VR Virtual Reality

LTE Long-term Evolution VRAN Virtual Radio Access Network

LTE-A Long-term Evolution-Advanced VRLA Valve-Regulated Lead-Acid

M2M Machine to Machine WIP Work In Progress

MEC Mobile Edge Computing XaaS Everything-as-a-Service

33


About Confederation of India Industry

The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, government, and civil society, through the advisory and consultative processes.

CII is a non-government, not-for-profit, industry-led and industry-managed organisation, playing a proactive role in India's development process. Founded in 1895, India's premier business association has around 9000 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 300,000 enterprises from around 276 national and regional sectoral industry bodies.

CII charts change by working closely with government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a range of specialised services and strategic global linkages. It also provides a platform for consensus-building and networking on key issues.

Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship programmes. Partnerships with civil society organisations carry forward corporate initiatives for integrated and inclusive development across diverse domains including affirmative action, healthcare, education, livelihood, diversity management, skill development, empowerment of women, and water, to name a few.

India is now set to become a US$ 5 trillion economy in the next five years and the Indian industry will remain the principal growth engine for achieving this target. With the theme for 2019-2020 as “Competitiveness of India Inc - India@75: Forging Ahead”, CII will focus on five priority areas which would enable the country to stay on a solid growth track. These are - employment generation, rural-urban connect, energy security, environmental sustainability and governance.

With 66 offices, including 9 Centres of Excellence, in India, and 10 overseas offices in Australia, China, Egypt, France, Germany, Singapore, South Africa, UAE, UK, and USA, as well as institutional partnerships with 355 counterpart organisations in 126 countries, CII serves as a reference point for the Indian industry and the international business community.

34


Acknowledgements

Confederation of Indian Industry Deepak Sidha Deputy Director Email: [email protected]

ContactsDeloitte 7th Floor, Building 10, Tower B,DLF Cyber City Complex, DLF City Phase-II, Gurgaon-122 002, India Tel: +91 124 679 2396 email: [email protected] Website: www.deloitte.com/in

Confederation of Indian Industry(Northern Region) - Sub - Regional Office Plot No. 249-F, Sector-18, Udyog Vihar, Phase IV, Gurugram - 122 015 Tel: +91 124 401 4073 Fax: +91 124 401 4070 email: [email protected] Website: www.cii.in

DeloitteSathish Gopalaiah Partner

Ashwin BallalPartner

Aditya KhaitanPartner

Vijay NairDirector

Nikhil SrivastavaManager

S DinakarSenior Consultant

35


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37


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