India’s telecom industry closed 2024 with $14.0 billion in capital expenditures (capex) and $41.0 billion in revenues — accounting for 4.7 percent and 2.3 percent of global industry totals, respectively.
Yet, despite its size and strategic significance, India’s telecom sector is set for a pullback in investments, as leading operators guide capex downwards over the next few years, MTN Consulting said in its latest report.
For three straight years, India’s capex-to-revenue ratio has hovered above 30 percent, indicating a capital-intensive sector. But mounting debt burdens and pressure to restore profitability have compelled telcos to scale back spending — an industry trend aligned with global forecasts but at odds with the Indian government’s ambitions for a self-reliant, innovation-driven telecom ecosystem.
The government has recently launched new policy initiatives aimed at nurturing a robust domestic telecom technology sector. These efforts seek to empower startups and companies developing next-generation telecom equipment and software, encouraging them to compete on the global stage.
However, a looming capex slowdown poses a major hurdle. Without sufficient investment, local startups may struggle to test and deploy their solutions in live networks—critical for refining products, scaling operations, and attracting global customers.
“If Indian telcos cut back on spending, we risk creating an innovation drought,” said an industry analyst at MTN Consulting. “Startups need a proving ground, and right now, telcos’ networks are that ground.”
Experts argue that government intervention could be the key to bridging this gap. A proposed multi-pronged strategy includes:
A large-scale deployment of true 5G networks by BSNL, the state-owned operator, to create a domestic platform for innovation.
Supportive policies for Vodafone Idea (Vi) as it attempts to roll out nationwide 5G services.
Targeted subsidies and incentives to make Indian-made telecom equipment more competitive in global markets.
Such measures could provide a much-needed boost to promising Indian startups like Astrome Tech, Coral Telecom, Frog Cellsat, Galore Networks, Niral Networks, Qbit Labs, Qnu Labs, Prenishq, Resonous Tech, Saankhya Labs, Scytale Alpha, Signaltron, Sooktha, VVDN, and WiSig—firms that have shown potential in areas like satellite communications, open RAN solutions, and secure network infrastructure.
With global telecom players intensifying their investments in 5G, AI, and next-gen connectivity, India’s ability to support its homegrown ecosystem will be crucial in determining whether it can translate its policy ambitions into tangible global leadership.
TelecomLead.com News Desk
