Indian Telecom Sector Flags Power Outages, Diesel Curbs, and Supply Chain Disruptions: Report

India’s telecom infrastructure is facing mounting disruptions as the ongoing conflict in West Asia begins to impact connectivity, logistics, and equipment supply. Telecommunication infrastructure providers and equipment manufacturers have reportedly flagged that freight route blockades and geopolitical instability are driving up transportation and insurance costs for imported telecom equipment, while also delaying shipments critical to network operations, according to an Economic Times report dated April 13, 2026.

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Diesel Restrictions Disrupt Tower Operations

In representations to the Department of Telecommunications and state authorities, the Digital Infrastructure Providers Association (DIPA) reportedly highlighted operational challenges on the ground. DIPA represents the India’s digital infrastructure industry that develop, build, own and operate the nation’s wireless infrastructure.

The association noted that telecom field personnel are being denied the purchase of diesel in containers at fuel stations due to restrictions aimed at curbing public hoarding. However, the industry has emphasised that telecom towers are classified as essential infrastructure and require an uninterrupted fuel supply.

Several districts across states, including Uttar Pradesh, Maharashtra, and Madhya Pradesh, have imposed curbs on diesel sales in containers, prompting fuel stations to halt supplies to telecom teams. According to DIPA, this has disrupted routine refuelling of telecom towers, with Maharashtra already witnessing adverse effects on network continuity.

Power Outages Increase Dependence on Generators

The situation is further aggravated by widespread power outages in several states, with disruptions lasting between four-six hours daily. This has significantly increased reliance on diesel generators for backup power.

“Telecom networks depend critically on uninterrupted power supply, especially in rural and remote areas where the grid power supply is erratic,” the industry body reportedly said, adding that diesel is required “on a routine basis to run DG sets at mobile tower sites to ensure continuous, round-the-clock availability of telecom networks”.

Manufacturing Faces LPG Supply Constraints

Supply chain challenges are also emerging in telecom tower manufacturing due to restrictions on liquefied petroleum gas (LPG) and liquefied natural gas. DIPA was quoted as saying that the stoppage of LPG supplies to galvanisation units-critical for tower manufacturing-could delay network expansion and infrastructure rollout.

Equipment Deliveries Delayed Amid Rerouted Shipping

Meanwhile, the Telecom Equipment Manufacturers Association (TEMA), representing global players such as Ericsson and Nokia, reported significant delays in equipment deliveries. Shipments that previously took a week are now taking up to a month, as vessels are rerouted along longer paths due to the conflict. The resulting logistical bottlenecks have sharply increased delivery timelines and operational costs.

“Logistics have become a major problem with ships being forced to take much longer, rerouted paths, which has significantly increased delivery times,” a TEMA spokesperson was quoted as saying.

Capex Slowdown Expected in West Asia

Additionally, Commtel Networks, which provides telecom networks to critical infrastructure sectors, has reportedly said it expects a halt on new capital expenditure and requests for quotations in West Asia.