To convert 2G to 4G, telecom companies need to invest $8 billion

Availability of low-cost smartphones and tariffs also key to make the country 2G-free

Mukesh Ambani’s recent call to consign India’s 2G services to history won’t come cheap. If the telecom sector were to convert Ambani’s dream into reality, it would need to invest a substantial $7-8 billion.

Currently, 2G customers with private operators constitute one-fourth of the 1.2 billion mobile subscribers in the country. And if state-owned firms like the Bharat Sanchar Nigam Limited (BSNL) are included, 2G subscribers would comprise a third of the total number of mobile subscribers in India.

Clearly, operators will need fresh investments to increase their 4G coverage and convert their towers to those with a fibre backbone.