India is a strategically important market for Huawei. Spectrum has become the most important resource in India after several policy changes. With the new policy and more spectrums, the industry has a positive outlook. The investments have also increased since last year and there is a lot of transparency.
In the carrier market, the company will focus its efforts on the 4.5G, video, and narrow-band-IoT solutions. With more spectrum being made available, and network quality being improved, Huawei will have opportunities. Increasing digitization is offering new opportunities as well. Currently, the main business comes from the carrier business.
Huawei has seen a tepid start to its business this year, due to the ongoing market consolidation as well as in the lead up to the auctions, but expects business to improve in the first quarter next year once telcos have a clearer strategy post auctions.
Operators have already rolled out 2G and 3G extensively across India and the next set of investment is happening on 4G, in line with the huge pick-up in data consumption. 5G would take anywhere from four to five years. Instead of jumping to 5G in a hurry, the company looks at bridging the telecom landscape by building an interim phase that will create an ideal situation for embracing digital transformation.