Private telecom operators in India are gearing up for a challenging start to the New Year, grappling with a dual set of challenges in their efforts to recover significant investments. Having committed approximately Rs 70,000 crore to expand 5G infrastructure and acquire radiowave assets in 2024, these telecom giants are now contending with subscriber losses triggered by mid-year tariff hikes.
These price increases, aimed at protecting margins, led to a significant customer exodus, while competition from satellite broadband providers, particularly Elon Musk’s Starlink, further threatens their data business dominance.
Private Telecom Operators Lose
Private telecom operators in India lost 2.6 crore customers, including 2 crore from Reliance Jio, Bharti Airtel, and Vodafone Idea, due to tariff hikes of 10-26 per cent.
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State-run BSNL gained 68 lakh subscribers by keeping prices steady, despite offering only 3G services. Meanwhile, private telecom players remain focused on recovering investments and expanding 5G infrastructure for future growth.
In 2024, Reliance Jio, Bharti Airtel, and Vodafone Idea collectively invested around Rs 70,200 crore, according to EY India Markets and Telecom leader Prashant Singhal. Meanwhile, the Digital Infrastructure Providers Association (DIPA) anticipates that the telecom infrastructure sector will require a total investment of between Rs 92,100 crore and Rs 1.41 lakh crore from 2022 to 2027 to support the growth of the 5G ecosystem.
Scindia Supports Telecom Tariff Hikes, Highlights 5G Growth
Union Minister Jyotiraditya Scindia expressed support for telecom operators regarding the tariff hikes, highlighting the significant investments made by companies in expanding network infrastructure. He emphasized that the rollout of 5G services in 2024 has opened the door for the adoption of emerging technologies, such as artificial intelligence, which hold substantial growth potential for the sector.
“5G deployment has been a game-changer. We’ve witnessed a significant surge in 5G base transceiver stations, rising from 412,214 in December 2023 to 462,854 by November 2024,” says DIPA,
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