5G Rollout In 2022: Tariff Hike, PLI Scheme Help Avert Telecom Sector's Crisis

With the government promising more reforms, the industry is entering the new year on a buoyant note, keen to see positive outcome on 5G spectrum pricing at the mega auction that is just months away.

A rare bonhomie among three private telecom companies in raising tariffs coming on the back of a bailout package by the government may have helped the telecom sector avert a crisis but the challenges haven't ceased to exist as the industry faces a cash-guzzling task of rolling out 5G networks in the coming months.

The sector that provides direct and indirect employment to millions is projected to see Rs 1.3 lakh crore to Rs 2.3 lakh crore of investments in the coming years in creating robust infrastructure and building telecom and network products that have been incentivised by the government through PLI and other initiatives.

After years of cut-throat competition and the top court ruling on payment of past statutory dues left some players in the lurch, billionaire Sunil Mittal's Bharti Airtel and struggling Vodafone Idea almost in tandem raised tariffs, taking the plunge they had long been talking about.

Shortly thereafter, richest Indian Mukesh Ambani's Reliance Jio too followed suit.