Reliance Jio and Bharti Airtel, two leading telecom operators, decided to lower the capex (capital expenditure) towards rolling out 5G in 2024. This is because they met most of their 5G rollout goals in the previous year.  Nokia, one of the vendors helping the telcos with its proven technology to roll out the next-generation networks has witnessed a major decline in sales due to the slowdown of 5G capex from Airtel and Jio. Nokia saw a 68% decline in net sales in India in Q2 2024. The company posted net sales of 329 million euros compared to Rs 1043 million last year in the same quarter.

The telcos are not expected to pick up the 2023 kind of pace or intensity again for rolling out 5G and it is unlikely that Nokia or even for that matter Ericsson will see the kind of sales they saw last year anytime soon. Vodafone Idea will be a key customer for both Ericsson and Nokia when it starts rolling out 5G.

Even Ericsson had reported a decline of 44% in net sales in Q2 of 2024 in Southeast Asia, Oceania, and India. Bharti Airtel and Jio are moderating the capex level to now become more profitable and are also looking to monetise 5G with FWA (Fixed Wireless Access).

Vodafone Idea will be the next telecom operator in the country that is expected to do a PAN-India 5G rollout. However, it is unlikely going to be as aggressive as what Jio and Airtel did due to a lack of funds. Vi is going to focus majorly on improving its 4G networks for the next year or so with the funds it has raised. Once 4G coverage goals are met, it is likely for Vi to start rolling out 5G in different parts of India.