Site icon TelecomLead

5G monetization challenges in India vs China telecom market

The United States, China, India, and Europe are all progressing at different speeds when it comes to deploying and monetizing 5G standalone (SA) networks, the latest Ookla report said.

5G SA performance in India 2024

In the U.S., 5G SA adoption has been marked by a strong focus on enterprise applications and private networks. While the country trails China in sheer scale, U.S. carriers like T-Mobile, AT&T, and Verizon have been pushing 5G SA deployments in targeted areas, particularly to support enterprise use cases in industries such as manufacturing, healthcare, and logistics.

However, monetization remains a challenge in the U.S., with operators still refining business models to extract maximum value from the new infrastructure. The country benefits from a competitive telecommunications sector, which has accelerated innovation in services like network slicing and fixed wireless access, but spectrum allocation issues and regulatory hurdles have sometimes slowed progress.

China continues to lead in 5G SA deployment, with an aggressive push from the government and state-owned telecom giants such as China Mobile, China Unicom, and China Telecom. China has deployed the largest number of 5G base stations globally, with 80 percent of its 5G network already operating on standalone architecture by late 2024.

This rapid rollout of 5G network in China has been facilitated by extensive state support, large-scale industrial applications, and a highly centralized strategy that aligns with China’s broader digital infrastructure goals.

China has also taken a lead in leveraging 5G SA for smart factories, autonomous vehicles, and AI-driven applications, ensuring that its digital economy remains globally competitive. Additionally, China’s heavy investment in research and development for advanced 5G capabilities, including enhanced uplink technologies and carrier aggregation, has given it an edge over other regions.

5G in China vs India 2024

India has emerged as a fast-growing 5G SA market in the world, with significant progress in deployment and adoption. The country launched its 5G services in 2022, and by 2024, nearly 52 percent of its 5G network had transitioned to standalone architecture.

Reliance Jio has been at the forefront of this transformation, deploying an end-to-end 5G SA network, while Bharti Airtel has been expanding its 5G NSA (non-standalone) network with plans to shift to SA gradually. India’s rapid progress has been driven by strong government support, spectrum auctions, and a burgeoning digital economy that demands better connectivity. Both Vodafone Idea and BSNL do not have 5G network at present.

However, 5G monetization remains a key challenge, as Indian telecom operators continue to offer 5G services at highly competitive rates to drive mass adoption. The focus is now shifting towards enterprise applications, with telcos exploring opportunities in smart cities, IoT, and private networks.

Europe, despite having ambitious 5G SA infrastructure targets, lags behind other major regions in actual deployment and performance. By late 2024, only 2 percent of Europe’s 5G connections were operating on standalone networks, significantly trailing China, India, and the U.S.

The continent’s progress has been hampered by regulatory fragmentation, investment constraints, and slower decision-making processes across different member states. However, some countries, such as Germany, the United Kingdom, and Spain, have made significant strides, often driven by targeted government policies and financial incentives for operators to accelerate 5G SA rollout.

European Commission has placed 5G SA at the core of its industrial strategy to boost competitiveness, but operators in the region are still struggling to monetize the technology effectively. Unlike in China and the U.S., where enterprise applications are already gaining traction, European operators are still experimenting with business models to drive revenue growth.

Across all regions, one of the biggest challenges in 5G SA adoption remains monetization. While the technology offers lower latency, higher reliability, and better uplink capabilities, telecom operators worldwide are still refining their business strategies to maximize returns.

The U.S. and China have taken the lead in exploring enterprise use cases, while India is focused on expanding consumer access, and Europe is working to overcome regulatory and investment challenges. As the global market evolves, the pace of 5G SA adoption and innovation in monetization strategies will be key factors in determining which regions can fully capitalize on the potential of the technology.

Baburajan Kizhakedath

Exit mobile version