Based on open radio access network (ORAN) technology, the plan is to roll out the solution initially for India and subsequently for exports
The move is being seen as far more ambitious than Airtel’s original plan of collaborating with hardware and software players to build a 5G network at the lowest price
Leading telecom firm Bharti Airtel on Monday announced a strategic partnership with the steel-to-software conglomerate Tata group for 5G network solutions. Based on open radio access network (ORAN) technology, the plan is to roll out the solution initially for India and subsequently for exports.
The move is being seen as far more ambitious than Airtel’s original plan of collaborating with hardware and software players to build a 5G network at the lowest price. As a senior executive said, the original plan was not “to become an R&D provider for the world”.
With the latest announcement, the Sunil Mittal-led firm is expected to now take rival Reliance Jio head on. Mukesh Ambani’s telecom venture Jio is already working on trials for its indigenously developed 5G network, based on ORAN. Jio would also sell the technology and solutions to global telcos, it had announced earlier.
Bharti Airtel has roped in Tata Consultancy Services (TCS) for its system integration capability. The ORAN technology requires expertise in integration of disparate elements of hardware and software based on an open source technology.
The earlier technology, provided by incumbent telecom gear makers like Ericsson and Nokia, was based on proprietary technology with hardware and software fused into one offering.
Under ORAN, telecom operators can buy their hardware as well as software from multiple players, thus increasing competition and reducing overall costs of the network. But to enable this, telcos need a system integrator for powering the network.
The Tata group, quite like Reliance Jio, has also built state of the art ORAN-based radio as well as standalone and non-standalone core, which control the network. The ORAN network is increasingly dependent on software, giving it more flexibility as well as efficiency. Reliance, which also bought Radisys in the US, has used it as a base for software solutions required for 5G.
Gopal Vittal, MD and CEO (India and South Asia) of Bharti Airtel, said: “We are delighted to join forces with the Tata group to make India a global hub for 5G and allied technologies. This will also provide a big boost to Indian innovation and manufacturing destination.”
N Ganapathy Subramaniam, COO of TCS, said: “As a group we are excited about the opportunity presented by 5G. We are pleased to have Airtel as our customer.”
The new alliance has an advantage over Jio in the global market as Bharti Airtel already either has its own networks or holds stake in telecom ventures across many geographies including Africa, Bangladesh and Sri Lanka. As for TCS, it services numerous telcos around the world.
For Airtel, the initiative to develop its own 5G technology based on ORAN is not new. Earlier, it had discussions with Tech Mahindra to engage it as a system integrator and software partner. It has also tied up with global partners including Japanese hardware giant NEC, Taiwanese major Sercomm, cloud player Red Hat and start ups like the US-based Mavenir, apart from Rakuten of Japan. It also tied up with US-based firm Altiostar to build small cells for deployment in 4G and later for 5G.
There are other JVs too. For instance, the group has signed up with Dixon Technologies for manufacturing a range of telecom products under the production-linked incentive (PLI) scheme.
An internal R&D team will be at work for system integration and technology collaboration.
TCS is not the only player in the ORAN sweepstakes. Tech Mahindra, apart from talks with Airtel, has also shown interest in bidding for BSNL 4G network. Wipro and HCL Technologies have also had talks with global players in this space. Among others, Sterlite Technologies is building its own technology for ORAN radios while HFCL wants to go a step further and manufacture the radio too. Bengaluru-based Saankhya is there too, having developed 5G radio along with base stations and chipsets.
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Terming India’s near duopoly telecom space “tragic”, Bharti Airtel Chairman Sunil Mittal said a large country like India needed at least three mobile players.
“In India, from 12 operators we are down to nearly two and a half … will it go down to two? In my view it would be tragic. India is a very large country and it deserves to have three private sector telecom players and I hope we end up with that situation,” he said at the Qatar Economic Forum.
Vodafone Idea came under a lot of stress after the Supreme Court in September last year directed the company to pay its adjusted gross revenue (AGR) dues to the Department of Telecommunications (DoT).
In a relief to the cash-strapped telecom operators, the court allowed the companies to clear their AGR dues in 10 years and start making an upfront payment of 10 per cent of the dues.
According to DoT estimates, Vodafone Idea owes Rs 58,400 crore as AGR dues. Of those, it has paid Rs 7,854 crore. It needs to pay the balance in 10 annual instalments ending March 31, 2031.
Bharti Airtel owes Rs 43,980 crore as AGR dues against the telco’s calculation of Rs 13,004 crore. The company has paid Rs 18,000 crore. The DoT had raised the AGR dues to telecom companies after the court crystallised the definition of AGR; similarly, it can be done on dues from bankrupt firms.
The court in October 2019 had delivered the verdict on the AGR issue for calculating the government dues of telecom companies, such as licence fees and spectrum-usage charges. However, Mittal is optimistic about his company.
“As far as Airtel is concerned, it is gaining ground, has gained market share, and is in a solid position. In Africa we have now strengthened our company and it is doing extremely well. We remain steadfast in our ambition.” When asked whether the pandemic had made him rethink business, Mittal said, “Very clearly the digital acceleration has forced the hands of almost every major corporate entity in the world. More and more digital tools and mediums are being used to do things … within the systems and, importantly, how best to serve customers in a more efficient and faster way. In my own opinion, the companies which are not going to adapt to the digital way of life will fall behind.”
Talking about the company’s One Web initiative, Mittal said: “We are firing on all cylinders, connecting more and more homes on fibre so that shifts from office to home are well served and we are doing well on that.
“One Web would serve every inch of the world’s land, oceans, mountains, jungles and deserts anywhere … we will have a radio signal to serve the people who are not connected due to the internet.
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