Telecom Operators Still Struggling to Monetise 5G, Says COAI DG

Telecom operators are still struggling to find use cases for 5G about three years after the network was first debuted in India, says Lt. Gen. Dr S.P. Kochhar, Director General of the Cellular Operators Association of India (COAI). The chief of the telecom industry body notes that it’s not just an issue in India, “it's across the world.”

“We’re slowly picking up, but not yet at a scale where we can fully monetise it," said Lt. Gen. Kochhar in an exclusive interview with Outlook Business. Adding that when the telecom industry moves from 5G to 6G, AI will be embedded in the network itself and then "the learnings we’ve gained while exploring 5G use cases will actually become commercialised in 6G."

"We expect that as 6G launches and 5G phases out, more and more use cases will emerge," he added.

In the August 2022 5G auction, the industry spent around ₹1,50,173 crore in total, out of which Reliance Jio Infocomm (Jio) spent about ₹88,078 crore, Bharti Airtel spent around ₹43,084 crore, and Vodafone Idea (Vi) spent around ₹18,799 crore. In a later auction, in June 2024, for 5G and other bands, the players spent a much smaller amount, around ₹11,340 crore.

This expenditure is on top of the capital investment companies incurred during the rollout phase.

According to an industry review report by credit rating agency ICRA, the Indian telecom industry’s total debt is estimated to increase to around ₹6.6 lakh crore as of 31 March 2025. The agency expects players to spend another ₹3 lakh crore over the next 4–5 years as capex, which would keep the total debt elevated.

Looking ahead, ICRA expects telecom operators’ operating income to grow by 10–12% in FY2026. Industry revenue is projected between ₹3.5–3.7 lakh crore, with operating profits (OPBIDTA) in the range of ₹1.7–1.9 lakh crore.

The industry’s debt-to-EBITDA ratio is likely to stay at 3.9–4.0 times, with an interest coverage ratio of 3.3 times for FY25, as per the credit rating agency’s report.

It added that future growth will depend on the next round of tariff hikes. Analysts have said that telecom players would likely raise mobile tariff plans by the end of 2026.

When asked about it, COAI DG said, "These decisions are taken by the boardrooms of respective companies. They never get into a collision with each other. Otherwise they will fall in the competition commission. So if our individual companies decide whether to raise or not to raise, that is their decision. They will never share it with us nor would we like to comment on those things."

He also refused to comment on adjusted gross revenue (AGR) dues faced by operators like Vodafone Idea, Bharti Airtel, and Tata Teleservices.

Lt. Gen. Kochhar did say that at this point, companies would not be ready to invest in new spectrum.

"Companies will not be really interested in investing so much, but use cases will drive adoption of 6G. From when we went from 4G to 5G, was a change of technology. So everybody thought that change of technology we will be able to find use cases. Didn't happen. But when we are going from 5G to 6G, is an up-gradation of technology. It's not a new technology. So whatever we have learnt in this phase of 5G, that we put to good use to find more use cases," he added.

Telecom Sector to Double GDP Contribution

Dr S.P. Kochhar also dwelled upon the telecom sector’s contribution to India’s GDP, which, according to a recent statement by Union Minister of Communications Jyotiraditya Scindia, is around 12–14%.

During his inaugural address at the India Mobile Congress, he said the sector would contribute about 20% to the nation’s economy in the next 12 years.

"Ministers don’t speak casually. He must have done some calculations. In my view, 20 is achievable, and I have no reason to think otherwise. Ministers at that level, especially cabinet ministers, don’t make offhand statements in public," Kochhar said.

Adding that no sector can function without telecommunications. It’s foundational. If that foundation is strong and innovative methods are used, every other sector will grow.

"So, don’t just look at telecom in isolation. Telecom is no longer a standalone industry; it’s an enabler that supports and strengthens all others,” he added.

Though he refrained from giving his views on similar goals outlined in the recently released draft of the National Telecom Policy 2025.

"National telecom policy is under consideration, has not yet been adopted. So industry is also giving its point of view... you'll have to wait for some time before my answer to this question. Because till the time this becomes a policy, there will be changes. In this point of view, we will also be taken into account… But the direction is correct. Okay. If you see strategic direction, that is correct. We have no bones against that. Minor tweaks here and there will happen," he added.