Indian telcos’ capex on 5G will increase if govt bans Huawei: Fitch

If the Indian government does not allow Huawei to build a fifth-generation (5G) network in the country, then Indian telecom operators may have to spend more on 5G infrastructure, US Rating agency Fitch has said in a report.

“We are of the opinion that Indian telcos may need to invest more on 5G capex –especially on the equipment if Huawei were banned to supply 5G equipment in India. Chinese vendors on telecom are generally cheaper and have better technology on 5G than their European peers”, Fitch Ratings Director (Asia Pacific) Nitin Soni told IANS in an interview.

The Chinese telecom equipment major got a huge endorsement in the world’s hottest mobile market last week with Bharti Airtel promoter Sunil Mittal extending support to Huawei saying the company should be allowed to help build India’s 5G networks.