Cisco Systems Inc. has set aside 5 billion USD to fund projects worldwide for 5G services. Cisco has decided to invest in 5G in India as part of this project to help telecom operators build crucial components of wireless networks comprising a core, transport, mobility, and security solutions.
Cisco works with BSNL in India, a Public sector telecom company, and will draw the funding for this project from Cisco Capital, the Company’s financing subsidiary.
Anand Bhaskar, managing director, service provider, Cisco, India, shared this announcement in an interview; however, he did not reveal the sum set aside for India Projects.
He said, “Company has kept aside $5 billion to support 5G projects globally. This funding will come from Cisco Capital, the financing arm that the Company uses to support our clients. In India, we will work using our global financing fund.”
Along with BSNL, the Company also provides products and solutions to Reliance Jio, Bharti Airtel Ltd, Vodafone Idea, Tata Communications Ltd, and Sify Technologies.
Bhaskar said that as the companies move from 4G to 5G, the first thing is upgrading the backhaul and core network, where the Company is partnering with telecom service providers and developing use cases for end clients.
The launch of 5G technology is expected to shift its focus to enterprises, becoming potential revenue sources for telecom companies. A significant part of telcos’ revenue comes from consumer mobility or mobile services, which is likely to change once 5G technology is rolled out. ‘5G is the future in India and many big enterprises are working towards this race to capture the market.
The Company has plans to collaborate with telecom companies to build use cases in the enterprise segment, even as it strengthens the back end to assure that networks support these use cases.
Bhaskar further said that Company aims to partner with service providers to tap small businesses as it is a key growth sector.
Cisco has invested $30 billion in research and development (R&D) for 5G in the past five years. This investment includes hardware, development of chips, acquisitions, and software to manage the network as they get more complex with the rollout of the 5G services.