5G Roll Out in India Expected to Begin in 2022: Tejas Networks

Tejas Networks expects the fiber based home broadband connections to increase from three million to 100 million in the next three to four years.

By January 22nd, 2021 AT 3:20 PM

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Tejas Networks, a Bengaluru based company engaged in the “high performance and cost competitive” products in the telecommunications space on Wednesday said that it expects 5G rollouts in India to begin in 2022. The company in its investor presentation highlighted that the roll out of 5G in the country will aid in “expediting fiberization of cell towers.” Tejas Networks on Wednesday also reported its third quarter financial results with the Bengaluru based company recording Rs 129.1 crore in consolidated net revenue, translating to a 51.2% year-over-year (YoY) increase. In its third quarter of the current financial year, Tejas Networks registered Rs 9.2 crore in net profit as compared to Rs 112.1 crore loss in the same period in the previous year.

Tejas Networks Expects 100 Million Homes Over Next 3 Years to Have Fiber Broadband Connection

While the government of India is scheduled to hold an spectrum auction in early March, 2021, the Department of Telecom (DoT) will not hold the auction for the 3300 MHz to 4200 MHz bands. ICICI Securities in early January said that the 3300 MHz to 4200 MHz bands are the “most popular band” for 5G and that “it may therefore be part of next auction.”

“However, there are other spectrum bands that are also gaining popularity in 5G deployment and, considering these bands provide much better coverage (compared to C-band), they can eventually play the critical role of ‘queen’ in 5G rollout, particular for non-standalone 5G deployment,” ICICI Securities said in its report.

The firm said that the 700 MHz spectrum band along with the 2300 MHz band, 2100 MHz band and the 1800 MHz band are being used by the global operators for 5G deployment.

“These are the bands that are either owned by telcos in India or have been put for auction,” ICICI Securities said in its report.

It also has to be noted that the telecom operators in India had provided contrasting timelines for 5G roll out in India. In early December, 2020, it emerged that Mukesh Ambani, Reliance Industries chairman had tipped that the 5G roll out in the country would kick start in late 2021. However, Sunil Mittal, Bharti Enterprises chairman said that the 5G would become the norm in the next two or three year period.

Meanwhile, Tejas Networks said that it expects the fiber based home broadband connections to increase from three million to 100 million in the next three to four years. The company said that the Indian government’s focus on “Atmanirbhar Bharat” has created a “favorable policy environment” as there is a “preference to Make in India” products. Further, the Performance Linked Incentive (PLI) program for “specified telecom equipment” also said to cover products made by Tejas Networks.

Crucially, Tejas Networks said that the recent mandate issued by the central government that requires the telecom operators to purchase equipment from “trusted sources” will aid the company.

Tejas Networks Selected by “Major Telcos” for FTTX Network Roll Outs

Tejas Networks said that it has won the tender for BharatNet expansion in two states in the recent months. The BharatNet initiative seeks to offer broadband connectivity to 2.5 lakh Gram Panchayats (GP) across the country. It has been said that 489,739 Km of optical fiber has been laid across India as of January 15, 2021, connecting 1,51,404 GPs.

The company also said that it has been picked by “major” telecom operators in India who are currently rolling out fiber based home broadband networks. Further, Tejas Networks said that it is “targeting” internet service providers across the country and that it expects to expand its market share to increase in the next financial year.

Globally, Tejas Networks said that it has “opportunities” with the operators replacing and expanding their networks in the “wake of geo-political developments.”

“Operators are motivated to build ‘clean networks’ and diversifying their supplier base,” Tejas Network said in the investor presentation.

The company also highlighted that there has been an increase in the fiber-to-the-home deployments “across regions, especially post COVID.”

“With increased demand for high-speed home broadband connections on optical fiber and the need for telecom operators to upgrade their backbone network capacity, we see a robust demand for our equipment globally,” Sanjay Nayak, managing director and CEO of Tejas Networks, said in a release on Wednesday.

Born in India, Yogesh loves to travel and has lived in multiple countries including New Zealand and Canada. His bylines can be found on various newspapers and blogs throughout the world, including Vancouver Sun, Surrey Now-Leader, Daily Hive , Investing News Network and Rach F1.

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