5G Adoption To Herald A High Tide Of Jobs In India
Special Feature

5G Adoption To Herald A High Tide Of Jobs In India

, Senior Manager - Editorial & Content, Naukri

Recently, India wrapped up its biggest-ever auction of telecom spectrum after receiving a mammoth Rs 1.5 trillion, or around $19 billion, of bids. The move marks the first step for the launch of the fifth generation of communication services or 5G services. It would enable consumers to enjoy ultra-high-speed internet connectivity.

The new technology provides the advantages of massive connectivity and low power consumption and boasts of download speeds and capacity that can enable autonomous vehicles, drones, remotely assisted surgeries and much more efficient traffic control. 5G connectivity will be used in emerging technologies and technology-enabled markets such as the internet of things (IoT), smart cities and smart agriculture.

In effect, 5G represents a fundamental shift in communication network architecture that will accelerate revenue generation through innovative services facilitated via 5G-enabled smartphones. 5G networks are significantly more dynamic than 4G networks, with services provided by logical network nodes distributed dynamically using distributed cloud computing. It goes without saying that this evolution of technology will also see a demand for a skilled workforce which is already being felt. As per a recent Indeed report, telecommunications and 5G tech jobs have increased by 33.7% between September 2021 and 2022.

Here’s a quick look at what 5G searches on Naukri.com’s website yielded here:

5G

Market Talk

However, to access the new generation of internet services users will have to switch to 5G-enabled handsets. It doesn’t mean the 4G network connectivity will disappear. In fact, it is likely to remain the main technology in the near future.

But one effect of the spread of 5G in the future will be a major impetus to the Electronic Manufacturing Services (EMS) industry in the telecom sector.

According to Frost & Sullivan, 5G technology will contribute nearly $450 billion to the Indian economy during the period 2023-2040 as the rollout of the new generation of services will lead to an increase in demand for telecom infrastructure projects, as well as a necessity to build them locally.

Telecom and networking products’ EMS business is estimated to grow from Rs 5,700 crore last year to Rs 10,900 crore by FY26 at a compound annual growth rate (CAGR) of 17.8%, as per Frost & Sullivan research.

This is already a significant area of opportunity as the replacement rate of smartphones in India is much higher than in the developed markets. With an average replacement cycle of 20 months for smartphones in 2021, it is even a tad more frequent than the global average of 21 months.

Also read: How the EMS industry is creating an army of blue-collared workers

In simple terms, mobile users in India replace their mobile handsets once every 20 months now as against 24-27 months earlier. As 5G services are launched, the top end of the market will quickly switch over. This will provide the initial push for new-generation handsets. At the same time, the export market will open up.

A study by Ericsson ConsumerLab shows that at least 40 million smartphone customers in the country could switch to the new technology in the first year of implementation. It added that 5G will account for roughly 39% of mobile subscriptions in India by the end of 2027, with around 500 million subscriptions.

At the same time, India is already one of the largest exporters of telecom equipment and this is only expected to increase because of increased outsourcing to companies with design, logistics and after-sales support services.

The government estimates the PLI scheme unveiled last year itself has already led to the creation of over 5,000 jobs. If the massive opportunity that is knocking on the doors due to the impending launch of 5G is considered, the new incentive structure and investments will easily add lakhs of new EMS-related jobs over the short to medium term.

Data centre storage solutions, racks and enclosures, GPON, IP PBX, media gateway, router, modems, and 5G infrastructure-related solutions are some of the current and future offerings of the EMS companies in this space.

Players, incentives

Some key players in the telecom-related EMS services domain include Syrotech, Netlink, Alcatel Lucent, Bharat FIH, Syrma SGS, Tejas Networks, Speech & Software Technologies, and Alphion India.

Many others are preparing to go big as the new generation of telecom services heralds an opportunity to make a new set of products.

For instance, domestic EMS firm Dixon Technologies has entered into an agreement with US-based smartphone manufacturer Orbic and has already been manufacturing such smartphones at its facility situated at Noida.

The government has been trying to push the cause of the industry even before the launch of 5G services. The Department of Telecommunications (DoT) notified the production-linked incentive (PLI) scheme for telecom and networking products in February 2021, with an outlay of Rs 12,195 crore over five years.

Last October, it greenlighted 31 proposals entailing an investment of Rs 3,345 crore over the next four-and-a-half years. The beneficiaries included Nokia India, HFCL, Dixon, Flex (earlier Flextronics), Bharat FIH (Foxconn), Coral Telecom, VVDN Technologies, Akashastha Technologies and GS India.

Recently, the DoT extended the PLI scheme for telecom by one year and amended the scheme to raise the incentive rate by an additional 1% to give a different reason for design-led manufacturing in the sector.

This is in sync with the Budget speech earlier this year that sought to create a strong ecosystem for 5G as part of the existing PLI scheme.

The surge of jobs for 5G

The government estimates the PLI scheme unveiled last year itself has already led to the creation of over 5,000 jobs. If the massive opportunity that is knocking on the doors due to the impending launch of 5G is considered, the new incentive structure and investments will easily add lakhs of new EMS-related jobs over the short to medium term.

There are as many as 14.3 lakh jobs in the handset manufacturing space. The PLI incentive scheme is expected to add 2 lakh more jobs to the current workforce, according to a report by Telecom Sector Skill Council (TSSC).

Indeed, if we go beyond the hardware side, the window of new applications and services also opens up many more job opportunities.

Take cloud, for instance. The overall Indian public cloud services market is expected to reach $10.8 billion by 2025, growing at a CAGR of 24.1% for 2020-25, according to research firm IDC. The demand for cloud technology professionals is likely to touch 20 lakh by 2025, a report by the National Association of Software and Services Companies (NASSCOM), in association with Draup, TCS and Accenture has found.

At the same time, the new technology would need a major reskilling and upskilling opportunity. Demand for skill already outstrips the supply.

As of March 2022, the 5G industry had a demand of 23,800 people and there is a ready supply of only 15,800 people, as per the report by TSSC.

Also read: 44% of India-based Software Developers Are Considering Leaving Their Jobs This Year, Compared to 42% Globally: Report

The immediate way to cater to the skill gap is by re-training the existing workforce. But the real action will play out as new jobs get added to the system. 

-Concept by Bruhadeeswaran R

 

Leave a Reply

 

Click on allow to subscribe to notificationsStay update with the latest happenings on out site