The 5G Race in India: Opportunity, Innovation & What Traders Should Watch
India’s 5G rollout is no longer just a tech milestone — it’s a high-stakes race shaping the country’s digital future, with ripple effects across industries like telecom, manufacturing, logistics, healthcare, and gaming. For traders looking to ride the next growth wave, this is a race worth tracking closely.
While Reliance Jio and Bharti Airtel lead the consumer rollout, the latest headlines reveal a new battleground emerging in enterprise 5G and private networks. And behind the scenes, global patent disputes and geopolitical tensions are shaping how India adopts and leverages this next-gen technology.
Private 5G: The Next Growth Engine
On July 19, Mint reported that Tata Communications is ramping up its private 5G initiatives, with CEO Amur Lakshminarayanan confirming that spectrum allotment clarity could open up major opportunities for Indian enterprises across ports, factories, and supply chains (Mint, 2025).
This shift from a consumer-first to a B2B-led 5G strategy is consistent with recent updates from the Department of Telecommunications (DoT), which has emphasized industry demand for captive non-public networks. The DoT has been steadily moving toward policy clarity on spectrum allocation for enterprises (DoT).
For traders, this means Tata Group companies, equipment manufacturers like Tejas Networks and HFCL, and system integrators like Tech Mahindra could see increased order books and improved margins in the next 2–3 years.
Patent Wars: India at the Crossroads of Innovation
In a notable legal development, the Delhi High Court rejected Nokia’s plea to enforce its 5G network slicing patent in India. The Finnish tech major had alleged infringement by Ericsson, Huawei, and Samsung in features used by hospitals and online gaming platforms (Mint, 2025).
While this might appear like a global tech skirmish, it signals a larger trend: India is becoming a critical arena for telecom IP battles. As more advanced 5G features like network slicing and ultra-reliable low-latency communication (URLLC) are adopted, disputes over licensing and standard-essential patents are expected to rise (ET Telecom).
For Indian traders, this opens up a new angle: firms that enable IP compliance, local R&D, and legal tech services could see increased demand, especially if India aims to become a neutral ground in global telecom IP conflicts.
What Traders Should Watch
From a market strategy lens, here are four key takeaways:
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Enterprise 5G > Consumer 5G (for now): While consumer 5G adoption in India crossed 200 million subscriptions as of March 2025, ARPU (Average Revenue Per User) has seen only modest gains (TRAI Performance Indicators, Q4 FY24). The real upside lies in private 5G deployments. Traders should track companies enabling B2B use-cases — from smart factories to hospital networks.
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Patent licensing and compliance as a theme: As network slicing and other high-value features go mainstream, IP licensing revenue could become a key narrative for global OEMs and their Indian collaborators. Watch for tech integrators that form partnerships with global players to localize these solutions.
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Make in India tailwinds: The Production-Linked Incentive (PLI) scheme for telecom gear has already attracted major investments from Tejas Networks, HFCL, and Foxconn (Invest India).
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Regulatory clarity as a catalyst: Delays in spectrum allotment for non-telco enterprises are a temporary overhang. Once DoT rolls out the framework for private 5G spectrum allotment — expected later this year — expect rerating in telecom infra stocks and IT services firms focused on edge networks and automation.
Looking Ahead: India’s 5G Playbook is Unique
Unlike the West’s consumer-first approach or China’s state-heavy rollout, India is building a scalable, enterprise-focused 5G model that leverages its massive MSME base and startup ecosystem.
Although Adani Data Networks acquired 400 MHz in the 26 GHz band in 2022 to build private 5G networks in ports, airports, and logistics zones, deployment has been delayed. The Department of Telecommunications has issued multiple notices for missing rollout deadlines, and Adani may even give up the spectrum—news confirmed by both RCR Wireless and Moneycontrol. In April 2025, Airtel agreed to purchase that very spectrum from Adani, underscoring the group's retreat from private 5G (Reuters).
Final Word: Follow the Infrastructure, Not the Hype
Just as 4G unleashed India’s digital payments and video streaming revolution, 5G could be the backbone for Industry 4.0, cloud gaming, AI in surgery, and real-time logistics.
But here’s the insight: it’s not the telecom giants that will benefit first — it’s the enablers. Those who build the infrastructure, write the software, provide the chipsets, and manage the spectrum will see first-mover gains.
For traders, that’s the pocket to watch.
Sources
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
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