Telecom sector gets 5G boost; Centre to infuse ₹44k crore into BSNL

Experts said that continued emphasis on the importance of mobile connectivity and broadband for economic development, especially in rural India, will further boost telecom and associated sectors.

India’s telecom sector will get a boost from the Budget, with an emphasis on launching 5G services and spectrum auctions in the upcoming financial year besides a performance-linked incentive scheme for 5G design-led initiatives planned for FY22-23.

Experts said that continued emphasis on the importance of mobile connectivity and broadband for economic development, especially in rural India, will further boost telecom and associated sectors. (Livemint)

The government will also infuse ₹44,741 crore in Bharat Sanchar Nigam Limited (BSNL) as capital for 4G spectrum, technology upgrades and restructuring, even as it expects lower revenue from the telecom sector in FY23 at ₹52,806.36 crore from licence fees and spectrum charges versus the ₹71,959 crore that it expected to earn in FY22.

Experts said that continued emphasis on the importance of mobile connectivity and broadband for economic development, especially in rural India, will further boost telecom and associated sectors. Additionally, the focus on 5G auctions and rollout will help India catch up with countries that have launched 5G, with nearly 200 telcos in 78 countries having already launched such services.

“The Budget announcement has given a much-needed push for 5G acceleration,” said Prashant Singhal, TMT emerging markets leader at EY.

“Telecommunication in general, and 5G technology in particular, can enable growth and offer job opportunities. Required spectrum auctions will be conducted in 2022 to facilitate the rollout of 5G mobile services within 2022-23 by private telecom providers,” finance minister Nirmala Sitharaman said in her Budget speech on Tuesday.