Indian Economy News

The telecom sector is prepared for 5G and expects to attract US$ 18 billion (Rs. 1.5 trillion) in investments in 2023

  • IBEF
  • January 2, 2023

India’s telecom sector is witnessing a surge in reforms as it has successfully connected people with 5G services and managed to decrease the cost of operations. The sector is all set to attract US$ 18 billion (Rs 1.5 trillion in 2023) worth of investments.

Mr. Mukesh Ambani, Chairman of Reliance Industries has committed an investment of US$ 24 billion (Rs. 2 trillion) for rolling out a 5G network across the country by the end of 2023, whereas the Adani Group is still yet to unveil its plan for the telecom business. Reliance Industries has also committed US$ 10.6 billion (Rs. 87,946.93 crores) to pay over a period of 20 years. On the other hand, Bharti Airtel is expected to invest in the range of US$ 3.26 billion - US$ 3.38 billion (Rs. 27,000-28,000 crores) and BSNL around US$ 1.93 billion (Rs. 16,000 crores) in 2022 for rolling out a developed 4G network by Tata Consultancy Services, which later would be upgraded to 5G. Hence, altogether investments worth more than US$ 18 billion (Rs 1.5 trillion in 2023) are expected.

The Telecom Secretary, Mr. K. Rajaraman stated that 2022 has been a great and exciting year because of the launch of 5G and the government will continue to take measures to lower the cost of operations for telecom operators. Additionally, various other industry experts also stated the growth strategy for 5G in the upcoming years and the opening of new capabilities to enhance productivity.

The telecom operators on an average are installing 2,500 base stations per week for providing 5G services in the country and around 20,980 mobile base stations were installed as on November 26, 2022.

The tariffs are also expected to increase in another six weeks. It was also noted that the structural and procedural reforms in the telecom sector approved by the government like electronic-Know Your Customer (e-KYC), 100% Foreign Direct Investments under the automatic route, Adjusted Gross Revenue (AGR), have positively impacted the sector in 2022.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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