2021 04 27T165054Z 1 LYNXMPEH3Q121 RTROPTP 3 SPAIN TELECOMS 5G 1622192260123 1622192274585

Ericsson expands local manufacturing of 5G equipment

NEW DELHI: European telecoms equipment maker Ericsson is expanding its domestic manufacturing capabilities to meet India’s demand for 5G equipment, as carriers Bharti Airtel and Reliance Jio begin rollouts on 5G networks.

Nitin Bansal, India Managing Director and Head of Networks Southeast Asia, Oceania and India, said the contract manufacturer Ericsson in India has boosted capabilities.

“Our strategy is that we have to build in India for India’s sake, and this needs to expand our production capabilities with our partner Gabil in Pune,” he said.

Ericsson will import some of the equipment while some of the equipment will be supplied through local manufacturing, however, Bansal said the aim is to meet all India’s domestic requirements from production within the country.

β€œIt will be a mixture at the beginning and then at the end we want to hit the target. When it comes to 4G, we deliver almost 100% of the requirements in India from India. So we will continue to increase our capabilities with our partner and make sure we hit that milestone for 5G as well.” It is a journey that we have already started with the investments with her as part of the production incentive associated with our partner,” said Bansal.

Major telecoms equipment vendors and contract manufacturers, including Nokia, Cisco, Flex, Foxconn and Jabil, have submitted an application under R12,195 crore Production Linked Incentive (PLI) scheme for the manufacture of telecom and network equipment. Ericsson has partnered with Jubail to benefit from the programme. The gear maker has been working with Jio, Airtel, and Vodafone Idea, but did not comment on plans to roll out carrier No. 3, which has yet to announce any plans to roll out 5G services unlike the other two that will launch next month.

Ericsson released its Mobility Report on Wednesday, which showed consumer readiness for 5G networks in India was strong with more than 100 million planning to upgrade to the services, which upgrade intent was two to three times higher than in global markets.

The report found that 5G network performance would be a driver of loyalty among consumers as a third of those surveyed for the report were already looking forward to moving to a service provider that offers better 5G services. “More than half of 5G-ready users expect to upgrade to a higher data tier plan in the next 12 months,” the report said.

While the report found that consumers were willing to pay 45% more for a 5G plan with bundled digital services or apps, rich media offerings such as simultaneous streaming and immersive experiences will open up the premium segment to carriers. “10% of consumers are willing to pay a 10% base premium for just 5G connectivity,” the report stated.

HD video streaming or a new video format and cloud gaming is likely to increase usage among consumers. The report found that six in 10 4G users say they will start or increase their use of real-world AR apps once they opt-in to 5G.

The report revealed that the demand for fixed wireless access was highest in India among all other global markets which in turn will also lead to 5G adoption. The report stated that 29%, or a third of consumers in the survey were willing to switch to a broadband provider offering 5G FWA from their current service provider.

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