Ericsson expects network densification to play an important role in the next phase of growth in India
Sandy Verma October 28, 2024 12:24 PM

Delhi Delhi: Swedish telecom gear maker Ericsson expects the next phase of its growth in India to be driven by network density due to the growing data consumption appetite of end users in the country, a senior company official has said.Ericsson for India Nitin Bansal, managing director and network head for the Southeast Asia, Oceania and India market region, told PTI that there is significant potential for growth in fixed wireless access in India, and it will soon surpass the number of deployments in the US. Will go.

He said, “The next phase of growth is primarily focused on meeting the increasing traffic requirements through network density to increase network utilization. Network density will lead to increased network utilization.”Ericsson estimates that in India Data traffic will increase from 29 GB per smartphone user per month to 68 GB per smartphone user per month by 2029.

“If this trend continues, service providers will densify networks to enhance user experience,” Bansal said. After recording a record surge in business from India in the second half of 2022 and early 2023 due to the rapid rollout of 5G, telecom gear makers including Ericsson have seen a slowdown in business. Ericsson reported a 44 per cent year-on-year decline in business for the third quarter to September 2024 in the Southeast Asia, Oceania and India region. Bansal said, “Even though the demand for 5G has slowed down, there are still opportunities in 4G and 5G services, especially if the company wants to expand its aggressive approach in the market. The business is cyclical – data consumption by 2029 29 “GB is expected to increase to 68 GB, requiring increased capacity in the network.” Recently, Vodafone Idea (VIL) announced a capital expenditure program of Rs 30,000 crore to build 4G and 5G capacity across 17 circles in India. It has selected Ericsson, Nokia and Samsung for the contract. The company has awarded two new telecom circles to Ericsson under the contract. VIL has also given a portion of the networks managed by Chinese players in the other two circles to Ericsson. With the new awards, Ericsson will now manage the telecom network of 10 of the 17 active circles of VIL.

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