Profitability pressure, lack of clear biz case may delay 5G launch in India: EY

NEW DELHI: Pressure on revenue and profitability, coupled with lack of clear business case, may delay 5G launch in India, consultancy firm EY said in an ET Telecom’s webinar on Tuesday, adding that the country is expected to see rollout of 5G services in the next four to five years.

Currently, capex is a challenge in India with high sector debt, declining revenues, said Prashant Singhal, global telecommunications leader, EY.

He said that pressure on financials would weigh on the operators’ mind while assessing the feasibility to seamlessly deploy 5G network. India would need to invest $60-70 billion for 5G. Globally, EY has predicted that 5G will be key in driving operator capex beyond 2020.


Another reason for the 5G delay could be the slow adoption of 4G, thereby suggesting that India’s 4G ecosystem is not mature enough yet.