As per industry reports, the recently announced relief package by the government, coupled with the increase in tariffs announced by incumbent operators is set to put India back on track to rollout 5G services by 2022. The sector is projected to see Rs 1.3 trillion to Rs 2.3 trillion of investments in the coming years in creating robust infrastructure and building telecom and network products that have been incentivised by the government through production linked incentive (PLI) and other initiatives.
The tariff hike alongside the government’s relief package that included a four-year moratorium on payment of dues has provided impetus to investment in new-age technology. With the government promising more reforms, the industry is keen to see positive outcome on 5G spectrum pricing at the auction.
A designated portal for giving clearance to trusted and secure products that telcos can install in their network, over Rs 120 billion production linked incentives (PLI) push for telecom sector, improving ARPU prospects for players, and unveiling of JioPhone Next smartphone with easy EMI options have been pushing the sector in the upward growth trajectory.
The relief measures are expected to enable the industry to redirect cash flows towards building futuristic networks like 5G and beyond. The telecom regulator is working out spectrum pricing and norms for new frequencies such as 526-698 MHz and millimetre band, that is 24.25 – 28.5 GHz, as also bands such as 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3670 MHz.
The year 2022 is expected to be a defining year and the sector is expected to get back to the period of accelerated growth.
