India may not have 5G connectivity till the end of next year as telecom operators are yet to take part in the auction of spectrum, but Chinese smartphone makers are rushing to launch devices in the country which is the second-largest mobile phone market in the world.
Vivo’s sub-brand iQoo and Realme recently were in the news for launching their 5G offerings in India.
The haste in launching the devices was explained as an effort to future-proof their business.
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This despite the fact that telecom operators in the country have been hit hard by the Supreme Court’s ruling on adjusted gross revenue (AGR) which is expected to squeeze money out of the companies. Vodafone Idea, which is struggling to remain afloat, definitely does not have the money to splurge on 5G spectrum. Similarly, Bharti Airtel is expected to go slow as well since it has already paid a large amount of money to the government as AGR dues and is expected to pay much more.
“We are not expecting any large scale commercialisation of 5G phones in 2020 because of the uncertainty around 5G network,” Neil Shah, research director at Counterpoint Technology Market Research, told the Hindustan Times. “It is difficult to say whether debt-laden telecom operators will be able to bid for high-priced 5G spectrum auction in 2020.”
The tough times for telecom operators have done little to dampen the spirits of Indian consumers hungry for new handsets. While phone makers are expected to promote their 5G-enabled phones with much fanfare, their prices could turn off potential buyers. This is because 5G phones are priced substantially higher than LTE phones despite offering only marginal improvements in performance.
Brad Akyuz, an analyst at NPD Group, a market research company, told Quartz: “It’s going to be a while before consumers look at the 5G options out there and say, ‘Hey, I really need this. I’ll pay extra.’”
It is, therefore, clear that 5G phones are not worth it right now. And given the state of the telecom operators, the technology may not find a footing in the near future as well, at least in India. Companies would do well to appeal to a wider audience and launch 5G smartphones later when the technology is more widely available and accessible.
