Reality Check For Start-ups

As 5G networks are rolled out across indian cities, stakeholders in the country’s vibrant telecom sector are preparing to tap into new areas of growth likely to be unlocked by the disruptive technology

- Manish Pant

THE 5G IMPACT

Telcos are likely to invest around $19.5 billion on 5G infrastructure, says a report by industry think tank GSMA

Companies are expected to focus on expanding the enterprise business segment with a diversified client base

Telecom infrastructure and equipment manufacturers see opportunities emerging amid geopolitical realignments and cybersecurity concerns

More tariff hikes imminent due to the prevalent low ARPU and increasing capex requirement by the telecom companies for 5G

The global chip shortage over the past 12 months has led to lower revenue realisation and higher margin pressure

AS 5G NETWORKS roll out across Indian cities, stakeholders in the country's vibrant telecom sector, the second largest in the world with a base of 1.17 billion wireless and wireline subscribers as of July 2022, prepare to tap into new areas for growth in a disruptive world. The wireline segment received a major boost from the Covid-19-induced lockdowns with an uptick in subscribers opting for wired broadband internet, shaped doubtless by the remote-work and remote-education paradigm. With cinema houses suspending shows, people turned to overthe-top (OTT) platforms for their daily dose of entertainment. However, the telecom sector struggled due to internecine competition, adverse judicial and government stands on spectrum pricing and adjusted gross revenue (AGR) disputes, and digital players building new businesses on 4G superhighways that eluded telcos.

The BT500 study period (October 2021 to September 2022) remained eventful for the sector since the Supreme Court's order on AGR dues in September 2020.