Telcos need to invest Rs 2.5 lakh cr to meet policy goals

NEW DELHI: The telecom sector needs about Rs 2.30 lakh crore investment for meeting the target of 100 per cent connectivity in rural areas and 60 crore broadband connections as envisaged in the National Telecom Policy, E&Y has said.

"Cumulative capex is estimated to be Rs 2,50,000 crore for 2013-20, by telecom operators to meet next level of growth, which can be utilised only by increasing rural tele- density, indigenous manufacturing and providing broadband connections to achieve 60 crore subscribers by 2020," Ernst and Young said at an Assocham event here yesterday.

To achieve 100 per cent tele-density by 2020 in rural areas, telecom operators will need to add 52 lakh subscribers a month which will involve investment of Rs 80,000 crore to Rs 90,000 crore, E&Y.

To meet broadband target as per the policy, telecom service providers will have to add 54 lakh broadband connections per month, it said, adding that this will involve capex of Rs 1,30,000 crore to Rs 1,40,000 crore by 2020.