The loss of millions of 2G customers during the lockdown could become a blessing in disguise for telcos, allowing them to accelerate their 4G coverage by reusing unused spectrum to improve technology.
According to experts, while telcos were already on the way to upgrade their networks to 4G by reorganizing the existing 2G / 3G spectrum, the lockdown has paved the way for faster realization of these plans to reduce fixed costs. and improve services.
Unlike Reliance Jio Infocomm Ltd, peers Vodafone Idea Ltd and Bharti Airtel Ltd have argued that they are not yet subscribing to the “2G Mukt Bharat” idea. But they have been reducing reliance on the 2G network amid increased competition from Jio, which only offers 4G services and claims to be 5G-ready.
“… The drop in the 2G customer base leading to unused spectrum is a push factor for telcos to convert radio waves to 4G,” said TV Ramachandran, president of Broadband India Forum. He added that the repopulation to 4G will require policy as well as technological changes, along with additional investment. However, the incremental cost of the upgrade will vary from case to case, depending on the spectrum band in question.
Airtel returned to cultivating the 900 megahertz (MHz) spectrum, previously used for 2G services in major markets, to 4G last year, and converted most of its 3G networks to 4G. Airtel also reportedly plans to add around 25,000 rural 4G sites by 2022 to increase its connectivity in such areas. Vodafone Idea has also improved radio waves in the 900 MHz, 1800 MHz and 2100 MHz bands for 4G services in the main markets.
Industry insiders believe telcos now have the opportunity to focus on closing the 4G gap in rural markets to meet the growing data demand of the millions who migrated from urban to rural areas due to the lockdown. However, telcos cannot do away with the 2G network entirely, as they still have many customers using feature phones, said Rajiv Sharma, director of equity research at SBICAP Securities. 4G services are intended for smartphone users.
Currently, 51% of Airtel’s customer base is on the 2G network, while for Voda Idea it is 63%. According to the industry body GSMA, between 12% and 13% of users will continue to use 2G phones until 2025 in India.
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