India's 5G rollout investment plan to cost govt Rs 1.3-2.3 trn
According to the telecom report from Motilal Oswal Financial Services, the total capital expenditure required to rollout 5G on mid or low-band spectrum in Mumbai is seen at Rs 10,000 crore, Rs 8,700 crore for Delhi and for pan-India coverage would hover at Rs 1.3-2.3 lakh crore.
The expiry of spectrum for Jio's 115MHz quantity in the 800MHz band acquired 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, Motilal Oswal report noted. This would cost Jio/Bharti/Vodafone Idea Rs 28,000 crore/Rs 12,900 crore/Rs 8,300 crore at reserve price, it said.
Further, with no new players, nascent use cases, limited incremental revenue potential, spectrum woes along with an inherently low ARPU structure in India, telcos may wait for the 5G technology to stabilise globally and see reduction in equipment cost, before deploying fresh technology, which could take 3-4 years.