India - Telecoms, Mobile and Broadband - Statistics and Analyses
India pushes 5G commercial service launches out beyond 2022
In November 2021, India’s Department of Telecommunications (DoT) extended the timeframe for the country’s MNOs to complete their 5G trials by another six months. The effect of this extension is that the 5G spectrum auctions are likely to be delayed until the second half of 2022, pushing the start of commercial launches out until 2023.
Despite these repeated delays, none of the major players seem particularly concerned. LTE networks still have a long way to go before nearing capacity, with one of the MNOs (state-owned company BSNL) only planning to launch 4G services in August 2022.
The country’s telecom sector is also recovering from a fierce price war that started in 2018 following the market entry of Reliance Jio. The aggressive competition saw ARPUs plummet across the board. This problem of a significant fall in revenue was compounded by the DoT’s winning of a major Supreme Court battle over the definition of Adjusted Gross Revenue (AGR) usage and licensing fees for telcos. A number of operators have been pushed to the edge of financial collapse, only for the government to come to the rescue, of sorts, in September 2021 with a very welcome relief package. Nevertheless, few of the potential bidders in the 5G spectrum auction are in a particularly healthy financial state, and the entire industry may end up benefitting from the opportunity to pause awhile.
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