Jio and Airtel allocate Rs 75,000 crore for network investments

Reliance Jio and Bharti Airtel, two major players in India's telecommunications industry, are reportedly set to make significant investments totalling approximately Rs 75,000 crore in the current fiscal year. These investments are aimed at strengthening and expanding their respective network infrastructures, according to a report by JM Financials.

As per the report, Reliance Jio is expected to allocate around Rs 42,000 crore for network enhancements and expansion in the fiscal year 2023-24. Similarly, Bharti Airtel plans to invest approximately Rs 33,000 crore during the same period. However, it's worth noting that these investments are likely to decrease after both companies achieve their target of rolling out 5G networks, in line with their previously announced timelines.

The report also highlights that Bharti Airtel's management anticipates a decline in capital expenditure (capex) for its India business, with estimates suggesting it could reduce to about Rs 20,000 crore in fiscal year 2024-25, down from Rs 28,000 crore in fiscal year 202223. Despite this, JM Financials is maintaining a more conservative estimate, with projections of around Rs 27,000 crore for fiscal year 2024-25 and Rs 33,000 crore for fiscal year 2023-24.