Back in August, RailTel and CloudExtel partnered to launch India's first Shared RAN solution for congested locations with the objective to enhance the telecom user experience. A press release said:
RailTel and CloudExtel carried out the successful pilot of this project in partnership with Bharti Airtel, Vodafone Idea, Nokia, and the Telecom Infra Project's NaaS Solutions Group, with vital support from the Railways, in one of the most network stressed locations, Mumbai Central railway station. The outcomes have been impressive with 5 times increase in average user speed (from 3Mbps to 15Mbps) for both Bharti Airtel and Vodafone Idea, while the data consumption jumped up by 20%.
At Telecom Infra Project's Fyuz 2022 conference, Kunal Bajaj, CEO & Co-Founder, CloudExtel provided details on this in a breakout session dedicated to Neutral Host Network-as-a-service (NaaS) business model. His part of talk is embedded below and you can also check out his presentation from the main stage here.
In an interview with Economic Times earlier this year, Kunal pointed out:
How many small cell sites are there in the country at present?
Small cells are not just for 5G rollout. There is a substantial 4G component of it today. As per industry standards, there are over about 30,000 odd small cell sites that have already been rolled out. Of that, about one-third to one-half of those sites have been rolled out by Reliance Jio. The balance have been rolled out by Airtel and Vodafone, and of that we have the largest market share. We have done over 4,000 sites for these two telcos, and there are all primarily 4G sites.
What’s the demand like for 4G small cells?
Even in the 4G space, month on month, year on year, data consumption has continued to grow pretty substantially. We are at 19 gigs per user, per month today, and if I remember correctly, we were at 12 gigs just a year ago, and much lower than that before. And this is all coming from 4G. 5G is not there yet, and what that really demonstrates is the reliance that users have on wireless connectivity. We have don’t much fixed line infrastructure today in India to really speak of. 25 million fixed line broadband users is nothing compared to the over 500 million 4G subscriptions. This growth in 4G data densification, even with 5G auctions coming up, will continue for the next two years.
Going forward, will these 4G sites be converted to 5G, or that will be part of a separate infrastructure?
If you see what has happened historically, when we went from 2G to 3G, and more relevantly, when we went to 3G to 4G, the 4G sites came up wherever you have very high capacity usage on 3G. 3G was not taken away, but those sites were upgraded to dual technology, by upgrading the equipment and adding an additional 4G radio to bring up 4G traffic from those sites. And I think that’s exactly what we are going to see in the 5G environment. The good thing is a lot of telecom operators learned from the 3G to 4G transition, and started investing very early in hardware that would be upgradeable to 5G.
Obviously the radio band is different, and there’s nothing really you can do in software to make the same radio to radiate multiple bands. So there will be investment. That happens in radio ugprades, but the core base station technology, the back haul, switches and things like that, a lot of that is now software upgradeable, and therefore it is going to be hopefully a much easier transition from 4G to 5G.
So what’s your projection of the number of small cells that will come up with the 5G rollout from August?
Some of the industry projections that we see from a lot of analysts and consulting companies is that India needs somewhere around 2,50000 small cell sites in the next five years across all three of the major operators. What that basically means is over 5-6 lakh unique small cells to be deployed. So that’s a tremendous amount of growth that we are going to see. The first one or two years from now is primarily going to be 4G, but then after that, the huge acceleration, the hockey stick curve is going to come from 5G deployment.
What is the kind of investments you are looking at in the next five years to cater to this demand?
We are talking of hundred of crores, just for us. We are looking at our base growing from 4000 small cells to 40000 small cell sites in the next five years. That’s a conservative projection, obviously, we believe and hope that we can do a lot more than that, but that will require well over 400-500 crores for us to really pull that off, and that’s where the opportunity to scale and build a substantial network. Today, when you compare us to the mainline tower companies, we are still a startup and in the beginning of our first innings, so we have a long way to go.
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