Net 5G base station (BTS) or `site’ additions have seen a spurt in March 2025, propelled by Vodafone Idea’s initial 5G rollouts, latest 5G site rollout data collated by the Department of Telecommunications (DoT) showed.
As per DoT data, the installed base of 5G sites stood at 4,74,000 in end-March, implying 4,400 5G BTS adds in the month versus an average of 2,600 in the past six months (Sep’24-Feb’25).
Analysts said the uptick comes on the back of Vi’s 5G rollout and expect the acceleration to be sustained for another six months as the telco expands its 5G coverage to India top cities.
“DoT’s monthly data of installed 5G BTSs across India shows a month-on-month (MoM) uptick in adds in March. This would be on the back of Vi’s 5G launch,” Axis Capital said, analysing latest 5G site rollout data collated by the telecom department.
The telecoms JV between UK’s Vodafone Plc and India’s Aditya Birla Group launched commercial 5G services in Mumbai in mid-March and plans to expand its next-gen wireless broadband coverage to other key cities, including Delhi, Bengaluru, Patna and Chandigarh this month, as per a recent investor presentation.
Analysts added that Vi’s recent return to an investment grade credit rating is also set to boost its prospects of closing its pending Rs 25,000 crore debt-raise, which is vital for it to execute its Rs 50,000-55,000 crore capex plans over the next three years to ramp up 4G in priority markets and launch 5G in key cities. A quicker rollout of 4G and 5G sites is also critical for improving Vi’s market competitiveness against bigger 5G operators, Reliance Jio and Bharti Airtel and reducing customer losses.
Vi plans to set up over 48,000 new 4G/5G sites over FY25-26, during which it plans to spend Rs 12,750 crore on network equipment for new sites and expansions, as per CLSA.
According to sector experts, the latest uptick in 5G base station adds in March marks a reversal of sorts as they had plunged in recent quarters following the sharp decline in network-building capex of Reliance Jio and Bharti Airtel, India’s top-two telcos.
As per recent DoT data, net 5G site adds had earlier plunged to just 8,000/9,000 per quarter in Q2/Q3-FY25 from around 1,11,000 additions per quarter in Q2FY24.
Analysts said that despite prospects of a Vi-driven acceleration in 5G site count over the next six months, any uptick via fresh 5G network capacity expansions by Airtel and Jio would take a while as the latter are yet to monetise their substantial investments in 5G airwaves and countrywide network rollouts in the absence of any killer 5G use-cases.
Axis Capital estimates Airtel’s India mobile capex (capex/sales) will drop to 18%/14% in FY25/27 from the highs of 30% in FY24. Likewise, it estimates Jio’s capex intensity to also dip sharply to around 16%/12% in FY25/27 from over 48% in FY24.
Sanford C. Bernstein said India’s top telcos will shift focus to average revenue per user (ARPU) and return ratio’s (read: RoCE) improvement with urban 5G coverage rollout completed. “As 5G matures, consumer demand grows, and new use cases emerge, the industry should gradually see new revenue streams and return on its investments.”
As per DoT data, the installed base of 5G sites stood at 4,74,000 in end-March, implying 4,400 5G BTS adds in the month versus an average of 2,600 in the past six months (Sep’24-Feb’25).
Analysts said the uptick comes on the back of Vi’s 5G rollout and expect the acceleration to be sustained for another six months as the telco expands its 5G coverage to India top cities.
“DoT’s monthly data of installed 5G BTSs across India shows a month-on-month (MoM) uptick in adds in March. This would be on the back of Vi’s 5G launch,” Axis Capital said, analysing latest 5G site rollout data collated by the telecom department.
The telecoms JV between UK’s Vodafone Plc and India’s Aditya Birla Group launched commercial 5G services in Mumbai in mid-March and plans to expand its next-gen wireless broadband coverage to other key cities, including Delhi, Bengaluru, Patna and Chandigarh this month, as per a recent investor presentation.
Analysts added that Vi’s recent return to an investment grade credit rating is also set to boost its prospects of closing its pending Rs 25,000 crore debt-raise, which is vital for it to execute its Rs 50,000-55,000 crore capex plans over the next three years to ramp up 4G in priority markets and launch 5G in key cities. A quicker rollout of 4G and 5G sites is also critical for improving Vi’s market competitiveness against bigger 5G operators, Reliance Jio and Bharti Airtel and reducing customer losses.
Vi plans to set up over 48,000 new 4G/5G sites over FY25-26, during which it plans to spend Rs 12,750 crore on network equipment for new sites and expansions, as per CLSA.
According to sector experts, the latest uptick in 5G base station adds in March marks a reversal of sorts as they had plunged in recent quarters following the sharp decline in network-building capex of Reliance Jio and Bharti Airtel, India’s top-two telcos.
As per recent DoT data, net 5G site adds had earlier plunged to just 8,000/9,000 per quarter in Q2/Q3-FY25 from around 1,11,000 additions per quarter in Q2FY24.
Analysts said that despite prospects of a Vi-driven acceleration in 5G site count over the next six months, any uptick via fresh 5G network capacity expansions by Airtel and Jio would take a while as the latter are yet to monetise their substantial investments in 5G airwaves and countrywide network rollouts in the absence of any killer 5G use-cases.
Axis Capital estimates Airtel’s India mobile capex (capex/sales) will drop to 18%/14% in FY25/27 from the highs of 30% in FY24. Likewise, it estimates Jio’s capex intensity to also dip sharply to around 16%/12% in FY25/27 from over 48% in FY24.
Sanford C. Bernstein said India’s top telcos will shift focus to average revenue per user (ARPU) and return ratio’s (read: RoCE) improvement with urban 5G coverage rollout completed. “As 5G matures, consumer demand grows, and new use cases emerge, the industry should gradually see new revenue streams and return on its investments.”
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