In a bid to bolster their networks and enhance services, Reliance Jio and Bharti Airtel, two prominent telecom giants in India, are slated to invest ₹75,000 crore in the fiscal year 2024, according to a report by JM Financials.
Reliance Jio is anticipated to channel approximately ₹42,000 crore into strengthening its infrastructure, while Bharti Airtel plans to invest around ₹33,000 crore during the fiscal year. However, the report indicates that these investments will gradually decrease once their respective 5G network rollout targets are achieved, in line with their public announcements.
The report elaborates on Bharti Airtel's capex guidance, suggesting a decline in its India business capital expenditure to about ₹20,000 crore from FY25 onwards, down from ₹28,000 crore in FY23.
According to the report, Reliance Jio's capex for FY24 might amount to ₹42,163 crore, expected to decrease to about ₹30,000 crore in FY25. Notably, Reliance Jio aims to achieve a nationwide 5G rollout by December 2023, while Bharti Airtel is on track to accomplish the same feat by March 2024.
Recently, Reliance Jio unveiled Jio AirFiber, a high-speed internet service catering to both households and offices. Offering speed up to 1.5 Gbps, Jio AirFiber is designed for activities such as high-definition video streaming, online gaming, and seamless video conferencing.
The service is poised to tap into an extensive market segment comprising over 200 million Indian households. Jio AirFiber is expected to be competitively priced, with estimates hovering around ₹6,000, possibly slightly higher due to the inclusion of a portable device unit.
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