India, Bangladesh, And Indonesia Might Get Insignificant Revenue From 5G Services

Although 5G trials have started, India is still behind several countries to adopt the 5G technology. The late adoption of 5G technology is likely to get insignificant revenue from the network as per rating agency Moody's Investors Service new report.

According to the report, the Government will have to play important role in the upcoming technology and services during the roll-out. The firm added that China, Hong Kong, and Malaysia were the early adopters of the same technology.

"The four pioneer markets, which include (South) Korea and China, will maintain their lead in adoption of 5G services. Among the four early adopter markets, Hong Kong SAR, China was the first to roll out 5G services, and its 5G adoption rate will be the highest," the firm said. "Revenues from 5G services will be insignificant for the late adopter markets of Bangladesh, Indonesia, and India," the firm added.

In addition, the firm states that telcos in India are ready to offer 5G services but waiting for the Government to allocate spectrum at less price. However, Moody's highlighted that the late adopters of the technology will get Government support.

"Governments in the pioneer and early adopter markets have driven 5G momentum. Support typically comes in the form of reasonable spectrum prices and infrastructure planning," the report said.

Early Adopters Of 5G Technology

The rating agency also highlighted telecom operators in Hong Kong and the Philippines launched services in April 2020. Additionally, countries like Singapore and Malaysia are likely to roll out services by the end of this year.

However, the firm states that there will be no material revenue via 5G services in the next 12-18 months to the late adopters like Bangladesh, Indonesia, and India. Moody noted that the late adopters are focussing on 4G services.

Furthermore, the rating agency added that countries like China and South Korea have managed to increase average revenue per user (ARPU) via 5G services.

But, one should not forget that only trials have been started and no one knows spectrum auction will take place in India. However, there are chances that by the end of the next year, telcos might start launching 5G services.