How private 5G, satellite internet services can cost dearly to companies

As companies like Elon Musk’s SpaceX, Hughes Communications India (along with ISRO) and Amazon step up efforts to deliver affordable internet services via low Earth orbit (LEO) satellites, business models and pricing will be challenges in expanding networks into new ones, report .

Some players are already testing internet services, and there are signs that consumer devices with LEO connectivity are on the way.

However, due to high investment and user costs, business models and pricing will be challenging to expand the network, as LEO connections cannot fully replace terrestrial networks for all that depend on cost efficiency, power consumption or overall performance. ”, according to “McKinsey Technology Trends Outlook 2022.”

Satellite internet provider Hughes Communications India last week announced the commercial launch of India’s first ISRO-operated High Throughput Satellite (HTS) broadband service.

The service is designed to provide high-speed broadband nationwide, even in the most remote areas not covered by terrestrial networks, to connect businesses and government networks.

As SpaceX abandoned its affordable internet project Starlink in India, Amazon stepped up efforts to launch a fast, cheap internet service in the country called Project Kuiper.

Regarding private 5G captive networks, the report states that such networks are a proven technology that many players have already benefited from. Other technologies, such as the Internet of Things (IoT) and driverless transportation systems, perform better when using high-quality networks powered by private 5G

“However, migrating from 4G LTE to private 5G may not be cost-effective for all players; it will depend on players’ technical ambitions and planned use cases,” the report states. The government has announced that it will conduct a needs study to allocate spectrum directly to companies with a net worth of over Rs 10,000 crore willing to build private 5G captive networks in the exercise
According to the regulations of the Department of Telecommunications (DoT). The guidelines state that companies wishing to establish a CNPN can lease spectrum from telecom operators or directly from the DoT.

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