Most Indian telcos are guiding capex downward
The Government’s new policy initiatives aim to foster a vibrant domestic telecom tech ecosystem, better funded and more forward-looking than past efforts, according to a research report https://www.commerce.gov.in/.
But much more is needed as local startups developing next-gen telecom gear need real-world opportunities to test and refine their solutions, said the “India Capex Starts to Ease in 1Q25 After 3 Big Years” report which has been added to ResearchAndMarkets.com’s offering since 16 June.
“Those opportunities are set to shrink as telcos tighten their budgets to restore profitability,” cautioned the report. If current trends persist, India may compromise its innovation objectives.
The most practical near-term solution is for a government-led push for BSNL to deploy true 5G networks at scale, favorable treatment for Vi as it attempts to build out nationwide 5G, plus subsidies and other enticements aimed to make local Indian gear attractive to overseas buyers.
That would help such Indian startups making waves like Astrome Tech, Coral Telecom, Frog Cellsat, Galore Networks, Niral Networks, Qbit Labs, Qnu Labs, Prenishq, Resonous Tech, Saankhya Labs, Scytale Alpha, Signaltron, Sooktha, VVDN, and WiSig, according to the report.
The report is based on near-term outlook for telecom capital expenditures (capex) in India, based on the 1Q25 earnings of key operators: Airtel, BSNL, Jio Platforms, and Vodafone Idea (Vi).
The report analyzes how current spending patterns compare with previous forecasts, highlights the main forces shaping investment decisions, explores implications for vendors, and discusses trends in emerging areas such as AI, large language models (LLMs), and data centres https://www.nseindia.com/.
India closed 2024 with US$14 billion in telco capex and US$41 billion in revenues, representing 4.7% and 2.3% of global industry totals, respectively.
India’s capex to revenue ratio, or capital intensity, has remained above 30% for three straight years https://www.bseindia.com/.
“Yet despite the sector’s scale and strategic importance, most Indian telcos are now guiding capex downward over the next few years,” it said https://sbi.com.in/.
“That trend is aligned with our forecasts, but at odds with the Indian government’s policy ambitions,” said the report. Fiinews.com
