The Future of 4G in India and the role of RIL
The Future of 4G in India and the role of RIL
The future of high speed mobile data for Indian markets is still an unexplored territory. However, there is immense potential for 4G in India. India’s metro cities have many homes and offices which need high speed data. India currently has 15 million broadband DSL connections and 55 million Direct-to-Home subscribers. These connections have been services through 4G. The future of 4G or long term evolution is being widely debated even as India’s leading corporate group RIL explores possibilities in this area.
High speed connectivity while a person moves from one point to another has always been a major requirement of the Indian market. As people have less time and more requirements, 4G can be perfect for meeting the needs of the Indian consumer. What is important is that 4G is not only needed in homes and offices. It has a huge potential for a growing mobile data market. Users who want higher speed to access social networks, live video streaming or data sharing would definitely be willing to pay for 4G. Policy initiatives can also make help to bridge the rural digital divide by paving in the way for 4G.
Mass access in urban and rural area through 4G should be the aim of RIL if they want to benefit from this move. Amazingly high speed wireless connectivity whether you are at one place or on the move can also have economic benefits. 4G is an economically profitable option for consumers because it used channel capacity in a more efficient manner. Nearly 80 countries across the world are using over 200 commercial 4G networks currently. Nearly 50 million out of 125 million users of LTE are based in Asia. This market has a tremendous potential for growth. Projections by analysts predict over 2 billion 4G users by the year 2018.
4G or fourth generation wireless service has been a goal of RIL since 2010. The focus is to provide a service that has 99.999% network availability. This 4G service will also integrate with app stores to provide smart phone users with conveniences such as online shopping. Content delivery is being targeted for not only mobile phones, but also laptops and televisions. This move could also lay the foundations for massive digital infrastructure and data centres in India.
RIL is currently targeting nearly 700 cities. Of these, 100 are designated as high priority markets. The launch of these services will cost around $10 billion and cell phone towers will also be set up. Around $3 billion has already been spent by this corporate giant to acquire total coverage of radio spectrum in the nation. Jamnagar is currently the testing field for RIL’s 4G services. Other companies such as Samsung Electronics are in the race for providing 4G gear to RIL. Equipment companies will also profit from this initiative.
RIL is currently reticent about its rollout plans for this project. Reliance has been at the forefront of development in India. This company transformed from a polyester textile company to a corporate giant with operations in far ranging fields such as oil, energy and communications. RIL could gain momentum from the move to establish a super fast 4G communication network now. This could be the next stage in its evolution.
A big lacuna for this group has been the huge cost of developing networks in remote areas with less population. Also, the type of 4G technology RIL is using does not have the ability to work on global smart phones such as those made by global players such as Apple and Samsung. While some analysts are contending that the Indian market is not yet ready for 4G, the debate is a complex one. A 4G network has the potential to transform the fortunes of RIL and the Indian telecommunication sector as well. RIL’s 4G network could rival US and Japan. India is projected to have over 37 million more 4G users within 4 years than other BRIC nations according to research and consulting firms such as Ovum.
The welfare benefits of RIL’s 4G network cannot be denied either. Currently a mere 9% of India’s population of 1.2 billion people have access to the Internet. This is because copper and fibre optics are not able to penetrate small towns and villages in India. If RIL is able to establish a strong 4G network in such areas, it will spur their growth and development. This could be just what we need to achieve superpower status.
