India's Huawei issue: Donald Trump may move India's 5G story in 10 ways
The United States is putting immense pressure on India to ban Huawei, know how it will affect India’s 5G story.
As India is trying its best to start 5G trials, the United States (US) is putting immense pressure to ban Huawei, the Chinese telecom equipment maker. It is one of the topic discussed at PM Narendra Modi's bilateral meeting with the US President Donald Trump on the sidelines of the 14th G20 summit in Osaka, Japan.
Know what's at stake if India bans Huawei, how it will affect India's 5G story and how the mobile users get affected in India.
1. 5G network rollouts may get postponed by 12-18 months
If Huawei is barred in India, the rollout of 5G network in India will get delayed by 12-18 months.
2. The deployment costs of 5G could increase by 15-20%
The banning of Huawei may push 5G deployment cost for telecom companies in India. Huawei is very competitive in its prices.
3. Telcos profit could be hit, damaging their 5G business case
In the beginning, the high deployment costs also mean low returns on telecom companies 5G investment.
4. Spectrum sales could face a problem
The 5G airwaves auction may flop. The telecom companies' appetite for expensive 5G spectrum might get hit because of delayed and costlier rollout forecasts
5. For smartphone users, 5G services may get expensive
5G services may get expensive for consumers due to costly rollouts. This may also result in limiting the transformative impact of high-speed technology.
6. Loss of potential disinvestment
The economy may be denied the benefits of the big-ticket 5G investment. In India, Huawei has invested $ 2.5 billion. It has been in the country for two decades. Other Chinese investment could also be hit.
7. Existing services can get disrupted
Indian telecom companies that are using Huawei equipment like Airtel and Vodafone-Idea may face challenges.
8. Mobile users may also feel the heat
Mobile users may also face some disruption in services if telecom companies are asked to ban Huawei equipment.
9. The ban may lead to thousands of Job loss
The ban may also lead to job cuts. Huawei employs approximately 6,000 people in India, the maximum number outside China.
10. Reliance Jio may get benefitted
Reliance Jio may roll out 5G faster than Vodafone-Idea and Airtel as it is buying equipment from South Korea's Samsung. South Korea is the first country to go 5G in a big way.