Telecom capex intensity has peaked, may revive with 5G: ICRA

The peak capex cycle for Indian telcos is over as the industry has achieved a sizeable penetration for 4G, and now the capex intensity is expected to moderate till an upgrade to 5G, according to a note by ICRA.

Now, with 4G capex summiting and 5G still some time away, the capex levels are expected to witness temperance to around ₹65,000 crore for FY20.

This, coupled with steady improvement in sales post the uptick in average revenue per user (ARPU) levels, would result in the decline in capex intensity to around 30-35 per cent, although it will still remain higher than the international peers, it said.