<p>Investments in key components of the 5G network on the mid or low-band spectrum with pan-India coverage are estimated to be about Rs 1.3-2.3 lakh crore, according to a report by Motilal Oswal Financial Services.</p>.<p>The total capital expenditure or Capex requirement when it comes to 5G rollout for Mumbai alone is seen at Rs 10,000 crore, and Rs 8,700 crore for Delhi, it said.</p>.<p>According to the telecom report from Motilal Oswal Financial Services, for mid-band or low band spectrum, the overall Capex requirement for pan-India coverage would hover at Rs 1.3-2.3 lakh crore.</p>.<p>Based on the TRAI's latest reserve price, the Capex requirement for obtaining 100 MHz mid-band spectrum in Mumbai would be about Rs 8,400 crore, which could go up further if the bidding price is higher than the base price.</p>.<p>Assuming about 9,000 sites would be required for coverage, the total Capex requirement for the sites would be Rs 1,800 crore - taking the total Capex to Rs 10,000 crore, it said. Similarly, Capex estimate for 5G rollout in Delhi would be Rs 8,700 crore – assuming 100MHz mid-band spectrum at base price.</p>.<p>The Indian telecom industry is seeing Capex peak out - particularly for Bharti and Reliance Jio - and increased free cash flows (FCF), the report said but added that risks have, however, started emerging due to the increased costs toward 5G upgrade and the upcoming spectrum renewal.</p>.<p>Investments in three key large components for a 5G network – spectrum, sites, and fiber on mid/low band spectrum with pan-India coverage – would stand at Rs 1.3-2.3 lakh crore which should reduce to Rs 78,800 crore and 1.3 lakh crore, for coverage of only metros and category 'A' circles, it said.</p>.<p>Even assuming rollout starting from FY23, a staggered deployment over the next 4-5 years - in line with 4G investment trend - may insulate the impact to a large extent.</p>.<p>The expiry of spectrum for Jio's 115MHz quantity in the 800MHz band acquired/shared from RCOM in 19 circles, Bharti's 57 MHz quantity in the 1,800 MHz band and Vodafone Idea's 37.8MHz/6.2Mhz quantity in the 1,800MHz/900MHz band are "attractive good quality spectrum" and would be up for renewal over the next 6-12 months, Motilal Oswal report noted. This would cost Jio/Bharti/Vodafone Idea Rs 28,000 crore/Rs 12,900 crore/Rs 8,300 crore at reserve price, it said. </p>
<p>Investments in key components of the 5G network on the mid or low-band spectrum with pan-India coverage are estimated to be about Rs 1.3-2.3 lakh crore, according to a report by Motilal Oswal Financial Services.</p>.<p>The total capital expenditure or Capex requirement when it comes to 5G rollout for Mumbai alone is seen at Rs 10,000 crore, and Rs 8,700 crore for Delhi, it said.</p>.<p>According to the telecom report from Motilal Oswal Financial Services, for mid-band or low band spectrum, the overall Capex requirement for pan-India coverage would hover at Rs 1.3-2.3 lakh crore.</p>.<p>Based on the TRAI's latest reserve price, the Capex requirement for obtaining 100 MHz mid-band spectrum in Mumbai would be about Rs 8,400 crore, which could go up further if the bidding price is higher than the base price.</p>.<p>Assuming about 9,000 sites would be required for coverage, the total Capex requirement for the sites would be Rs 1,800 crore - taking the total Capex to Rs 10,000 crore, it said. Similarly, Capex estimate for 5G rollout in Delhi would be Rs 8,700 crore – assuming 100MHz mid-band spectrum at base price.</p>.<p>The Indian telecom industry is seeing Capex peak out - particularly for Bharti and Reliance Jio - and increased free cash flows (FCF), the report said but added that risks have, however, started emerging due to the increased costs toward 5G upgrade and the upcoming spectrum renewal.</p>.<p>Investments in three key large components for a 5G network – spectrum, sites, and fiber on mid/low band spectrum with pan-India coverage – would stand at Rs 1.3-2.3 lakh crore which should reduce to Rs 78,800 crore and 1.3 lakh crore, for coverage of only metros and category 'A' circles, it said.</p>.<p>Even assuming rollout starting from FY23, a staggered deployment over the next 4-5 years - in line with 4G investment trend - may insulate the impact to a large extent.</p>.<p>The expiry of spectrum for Jio's 115MHz quantity in the 800MHz band acquired/shared from RCOM in 19 circles, Bharti's 57 MHz quantity in the 1,800 MHz band and Vodafone Idea's 37.8MHz/6.2Mhz quantity in the 1,800MHz/900MHz band are "attractive good quality spectrum" and would be up for renewal over the next 6-12 months, Motilal Oswal report noted. This would cost Jio/Bharti/Vodafone Idea Rs 28,000 crore/Rs 12,900 crore/Rs 8,300 crore at reserve price, it said. </p>