5G discussions have slowed as clients focus on telecom spend: Tech Mahindra

Mumbai: Tech Mahindra’s plan to boost revenue from the telecom sector seems to have hit a roadblock given the slowdown in the $1 billion AT&T project, and as clients put on hold discretionary spends, delaying 5G rollout.

Telecommunication comprises about 40% of Tech Mahindra’s revenue and the company had been betting on telecom operators going ahead with their 5G implementation plans this year. But the covid-19 pandemic put a hold on their plans. Client discussions, however, haven’t stopped yet, the management told Mint.

“Currently, governments are busy tackling the pandemic. For 5G implementations there is a lead time required to licence the technology, procure network resources. Most of the key investments have stepped into the slow lane. But discussions have certainly not stopped,” said CP Gurnani, CEO & MD, Tech Mahindra.