BSE Telecom Index Rises 3%, Driven by Bharti Twins

On February 7, the BSE Telecommunication Index witnessed a 3% rise, fueled by strong performances from Bharti Hexacom and Bharti Airtel. Bharti Hexacom’s share price demonstrated an impressive rally, surging over 7% and trading 7.19% higher as of 1:00 pm, while Bharti Airtel’s shares climbed nearly 4%, standing at 3.77% higher at the same time.

Other telecom-related stocks also contributed to the upward momentum. Indus Towers share price experienced a 3% increase, while Tata Communications saw its shares rise by 2%. HFCL recorded a 2% gain, followed by Suyog, Tejas Networks, Vindhya Telelinks, and Optiemus Infracom, which displayed notable trading volumes during the session.

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A key development influencing the telecom sector was Indus Towers' recent acquisition of mobile infrastructure assets from Bharti Airtel and Bharti Hexacom. The deal, valued at ₹3,308.7 crore, was executed through a slump sale mechanism and involved the transfer of approximately 16,100 telecom towers. This move is expected to strengthen Indus Towers’ network presence and enhance its long-term growth prospects.

Meanwhile, telecom operators are preparing for upcoming payments related to deferred spectrum costs and adjusted gross revenue (AGR) dues, which will come due after the moratorium period ends in September 2025. These payments are a crucial factor in determining the financial strategy of leading players in the industry, as they continue to expand their 5G infrastructure and broadband connectivity.

The telecom sector’s revenue in FY25 has been significantly driven by spectrum allocations to BSNL and Indian Railways, along with advance payments from Bharti Airtel for previous spectrum auctions. The second 5G spectrum auction also played a vital role in boosting revenue, raising ₹11,340.78 crore, a portion of which has been incorporated into FY25’s financial estimates.

Despite these revenue streams, projections indicate that India's telecom revenue will shrink by over 33% in FY26, dropping to ₹82,442.84 crore, compared to ₹1,23,357.20 crore in the current fiscal year. This decline is attributed to reduced spectrum auction proceeds and shifting government policies affecting revenue collection from telecom operators.

In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced a new broadband connectivity initiative aimed at enhancing internet access in select government schools and health centers. This move aligns with India’s broader digital transformation goals, focusing on bridging the digital divide and expanding high-speed internet access to underserved regions.

Industry experts believe that increased government investment in digital infrastructure will provide significant opportunities for telecom companies, particularly in the fiber-optic network expansion and 5G deployment sectors. However, challenges such as high spectrum costs, competitive pricing, and financial liabilities remain critical concerns for operators.

The Indian telecom sector continues to evolve, balancing policy-driven growth initiatives with financial obligations, as companies strive to capitalize on emerging technologies and market opportunities while managing regulatory and fiscal pressures.