Rs 2.3 Lakh Crore To Be Needed For 5G Rollout In The Country

Rs 2.3 lakh crore to be needed for 5G rollout in the country: report. Everyone is eagerly waiting for the 5G rollout across the country and continuous work is also being done in this episode.

In such a report, it has been claimed that for the 5G rollout across the country, Rs 2.3 lakh crore will be required. This claim has been made on the basis of TRAI’s latest reserve price in a telecom report by Motilal Oswal Financial Services.

This report states that to get a 100MHz mid-band spectrum in Mumbai will require a capex of Rs 84 billion, which can increase even if the bid price is higher than the base price.

Based on TRAI’s latest reserve price, according to a telecom report by Motilal Oswal Financial Services.

The capex requirement for acquiring a 100MHz mid-band spectrum in Mumbai would be Rs 84 billion, which could increase if the bid price exceeds the base price.

At the same time, 9k sites would be required for coverage with a cost of 20 lakh rupees per site. The total capex requirement for the sites would be Rs 18 billion, taking the total capex to Rs 100 billion.

Similarly, the capex requirement for a 5G rollout in Delhi would be Rs 87 billion. This estimate is based on the base price (Rs 69 billion) assuming a 100MHz mid-band spectrum.

The Indian telecom industry is witnessing an increase in capex peak out (especially for Bharti and Argyo) and free cash flow (FCF).

However, risks are beginning to emerge due to the increasing capex towards 5G technology upgrades and upcoming spectrum renewal.

According to the report, investment in three major mega components for the 5G network – spectrum, fiber on sites, and mid/low band spectrum.

Pan-India coverage – will be Rs 2.3 lakh crore / 1.3 lakh crore, which is only on the metros and ‘A’ circle. Should be reduced to 1.3 lakh crores / 788 billion for coverage.

With low coverage and 1.5 lakh crore cost/site, it could be as low as 1.6 lakh crore (mid-band) for Pan India coverage.

Even assuming the rollout will begin from FY23E, the delayed deployment over the next 4-5 years (in line with the trend of 4G investment) can save a large number of impacts to a large extent.