According to the telecom report from for mid band or low band spectrum, overall capex requirement for pan-India coverage would hover at Rs 1.3-2.3 lakh crore.
Investments in key components of 5G network on mid or low-band spectrum with pan-India coverage is estimated to be about Rs 1.3-2.3 lakh crore, according to a report by Telecom experts
The total capital expenditure or capex requirement when it comes to 5G rollout for Mumbai alone is seen at Rs 10,000 crore, and Rs 8,700 crore for Delhi, it said.
Based on the TRAI’s latest reserve price, capex requirement for obtaining 100 MHz mid band spectrum in Mumbai would be about Rs 8,400 crore, which could go up further if the bidding price is higher than the base price.
Assuming about 9,000 sites would be required for coverage, the total capex requirement for the sites would be Rs 1,800 crore taking the total capex to Rs 10,000 crore, it said.
Similarly, capex estimate for 5G rollout in Delhi would be Rs 8,700 crore assuming 100MHz mid band spectrum at base price.
The Indian telecom industry is seeing capex peak out – particularly for Bharti and Reliance Jio and increased free cash flows (FCF), the report said but added that risks have, however, started emerging due to the increased costs toward 5G upgrade and the upcoming spectrum renewal.
Investments in three key large components for a 5G network spectrum, sites and fiber on mid/low band spectrum with pan-India coverage would stand at Rs 1.3-2.3 lakh crore which should reduce to Rs 78,800 crore and 1.3 lakh crore, for coverage of only metros and category ‘A’ circles, it said.
Even assuming rollout starting from FY23, a staggered deployment over the next 4-5 years – in line with 4G investment trend may insulate the impact to a large extent.
The expiry of spectrum for Jio’s 115 MHz quantity in the 800MHz band acquired/shared from RCOM in 19 circles, Bharti’s 57 MHz quantity in the 1,800 MHz band and Vodafone Idea’s 37.8MHz/6.2Mhz quantity in the 1,800MHz/900MHz band are “attractive good quality spectrum” and would be up for renewal over the next 6-12 months sources say
This would cost Jio/Bharti/Vodafone Idea Rs 28,000 crore/Rs 12,900 crore/Rs 8,300 crore at reserve price, it said.
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India had just 322 million wireless broadband subscribers in 2017, a number that Edelweiss Research estimates will jump to a whopping 1 billion by 2025 with the deployment of 5G .
This is crucial, as telecom forms the very backbone of India’s digital revolution.
“With 5G, technologies such as autonomous/driverless cars, smart transportation and logistics, smart farming, drone patrolling for road safety, holograms and remote robotic healthcare are expected to enter our world, and become more and more pervasive by the day.
The technology is poised to open up a plethora of possibilities in terms of business models, better education, healthcare, smart cities, smart manufacturing, intelligent logistics and overall, enhanced lifestyles.
The potential can be imagined by the prediction that by 2026, the revenue for India’s telecom operators is estimated to reach US$ 619 billion.”
