That’s posing a conundrum for the carriers controlled by tycoons including Mukesh Ambani, Asia’s wealthiest man. The investment would mean more borrowings, but the reward could be revenue streams never seen before.
While 5G offers potential in augmented reality, virtual reality, connected cars, autonomous drones, smart homes and cities, the real promise for a country like India lies in rural areas, said Prashant Singhal, global head of telecommunications at Ernst & Young.The technology could address some of the basic challenges due to lack of infrastructure in health care and education.
“Spectrum pricing is too expensive in India and the telecom companies will have further stress in their balance sheets if they wish to participate in the upcoming auction,” Rajan Mathews, chief of Cellular Operators Association of India, the industry group representing the carriers, said in an interview Tuesday. “But they have an option of buying at a later date.”In India, successive governments running chronic budget deficits have relied on airwave auctions to replenish their coffers.