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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
Indian telecom operators, who are rolling out 5G at a rapid pace, could soon see the costs of 5G gear that they import going up. Major vendors such as Nokia and Ericsson are supplying the telcos with 5G gear. Because of the ongoing Israel conflict, the rupee could fall against the US dollar. As of now, no major fall has happened. However, in case the conflict becomes wider and longer, then there’s a good chance that the Indian rupee may fall against the US dollar.
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According to an ET report, this could mean that the 5G network gear costs for the telcos could rise by Rs 2000-2500 crore. It would not only increase the capex projections for the telcos but would also likely slow down the 5G rollout. The report mentioned that India’s rupee could witness up to a 3-4% dip against the US dollar. Such a scenario would also increase the foreign debt servicing costs for the telcos and directly impact their profitability.
A major part of the telecom gear in the mobile networks in India is imported from players such as Nokia, Ericsson and Samsung. This means that the telcos would be wary of their 5G rollout costs in the near future. For now, both Airtel and Jio are going at a decent pace and seem to be on track to complete their 5G rollout in their target time.
