Ericsson expects network densification to drive next phase of growth in India

Ericsson anticipates growth in India driven by network densification to meet rising data consumption, focusing on 4G and 5G services.

“Swedish telecom gear maker Ericsson expects its next phase of growth in India will be driven by network densification due to the rising data consumption appetite of end users in the country,” a senior company official has said.

Ericsson's managing director for India and head of networks for market area South East Asia, Oceania and India, Nitin Bansal, told PTI that there is significant potential for growth in fixed wireless access in India, and it will soon surpass the number of deployments in the U.S.

"The next phase of growth is focused on meeting increasing traffic requirements, primarily through network densification to enhance network utilisation. Network densification will occur due to increased network utilisation," he said.

Ericsson estimates that the data traffic in India will grow from 29 GB per smartphone user per month to 68 GB per smartphone user per month by 2029.

"If the trend continues, then service providers will densify the network to enhance the experience of users," Mr. Bansal said.

After registering a record jump in business from India on account of a speedy 5G rollout in the second half of 2022 and early 2023, telecom gear makers, including Ericsson, have seen a slowing down of business.

Ericsson reported a 44% year-on-year decline in business for the third quarter of September 2024 in Southeast Asia, Oceania and the India region.