Top 10 Telecom Players Fuelling India's Digital Revolution

Over the past decade, India has achieved remarkable progress in digital connectivity and local manufacturing, propelled by the ambitious policy reforms aimed at raising India's status as a leading digital economy in the world.

Thanks to these efforts, India is today the?third-largest digitised country in the world, after US and China.

Telecommunications infrastructure acts as the cornerstone of these developments providing connectivity across myriad devices and applications, thus contributing to a higher standard of living and overall economic growth.

As India embraces an extraordinary decade of technological advancement, the achievements in its Information and Communications Technology (ICT) capabilities and infrastructure are noteworthy.

With the fastest 5G rollout globally and a growing focus on 6G, India's shift from importing to developing telecom technology is reshaping the industry.

In this article, we'll explore the top 10 telecom stocks in India.

#1 Bharti Airtel

Leading the list is Bharti Airtel.

Bharti Airtel Limited is a leading telecommunication company globally.

The company is among the most trusted providers of ICT services with a global network across the USA, Europe, Africa, Middle East, Asia-Pacific, India, and SAARC regions.

Airtel Telecommunications ranks among the top 3 mobile service providers around the world (as per subscribers).

Airtel boasts a diverse product portfolio, a strategic submarine cable, and a satellite network covering over 365,000 RKMs across 50 countries and 5 continents.

On 5 September 2024, Bharti Airtel completed the deployment of additional spectrum it acquired in July.

This includes 5 MHz on the 1,800 band in Assam and 5 MHz on the 2,100 band in Assam and the Northeast, enhancing the capacity of its 4G/5G networks in the region.

Recently, Bharti Airtel partnered with Apple to offer exclusive deals on Apple Music and Apple TV+ to its customers in India.

Apple TV+ will be included with Airtel's Xstream video-streaming service for premium Wi-Fi and postpaid plans, while Wynk Premium users will get offers on Apple Music.

Earlier in May, Airtel also strengthened its partnership with Google Cloud to offer cloud-based solutions to businesses in India.

This collaboration aims to drive cloud adoption and modernisation, providing Airtel's customers access to a wide range of advanced cloud services from Google Cloud.

Bharti Airtel is investing heavily in FTTH deployments to provide high-speed broadband connectivity to homes and businesses, driving digital inclusion and enhancing customer experiences.

For more details, see the Bharti airtel company fact sheet and quarterly results.

#2 Indus Tower

Next on the list is the Indus Tower.

Indus Towers is a cornerstone of India's digital infrastructure, serving as a provider of tower and related infrastructure-sharing services.

As one of the largest telecom tower companies in India, it plays a pivotal role in supporting the nation's growing mobile connectivity.

The company's business model revolves around owning, operating, and maintaining telecom towers, which are leased to multiple mobile operators. This infrastructure-sharing approach optimises resource utilisation and reduces the overall cost of network deployment for telecom companies.

The company is driving up its investments in the rural parts of the country. The goal is to bridge the digital divide, that the government of India wants to achieve as early as possible.

Further, the majority stake in the company is owned by Bharti Airtel, another leading telecom service provider based in India.

Additionally, Airtel plans to merge the high-growth data centre business, Nxtra, with Indus Towers. This move is designed to unlock value, provide an exit to Carlyle, and make Airtel more asset-light.

The integration of Nxtra's data centre business is expected to add another high-growth area, enhancing Indus Towers' prospects in the future infrastructure sector.

Indus Towers has been pivotal for the growth of digital India by creating telecom infrastructure and providing it to the telcos for rolling out new technologies faster.

For more details, see the Indus Towers company fact sheet and quarterly results.

#3 Bharti Hexacom

Next on the list is Bharti Hexacom.

Bharti Hexacom is a wholly-owned subsidiary of Bharti Airtel.

The government-owned company Telecommunications Consultants holds a 30% stake in Bharti Hexacom. Bharti Airtel has the remaining 70% of Bharti Hexacom.

The company is engaged in the business of wireless services, fixed lines and broadband services in the state of Rajasthan particularly in the Northeastern parts.

The company relies on a robust network infrastructure with a mix of owned and leased assets. As of 30 September 2023, it had 23,748 network towers, of which 5,005 were owned.

Bharti Hexacom has a spectrum portfolio with a varied pool of mid-band spectrum, which enables it to offer 5G Plus services on the widely chosen non-standalone network architecture and at a low cost of ownership.

This has helped it save a significant amount of capital towards sub-GHz spectrum for 5G rollout and additional capital expenditure required to be spent on the network infrastructure to deploy the same.

It boasts a leadership position in Rajasthan (40% market share) and the North East circle (51% market share).

As part of its growth strategy, the company focuses on enhancing its portfolio by transitioning customers from 2G to 4G/5G, upgrading customers to higher data packs within 4G plans, facilitating pre-paid to post-paid conversions, implementing contextual data monetisation, and offering converged solutions.

These initiatives are aimed at driving Average Revenue Per User (ARPU) growth in the absence of tariff hikes.

For more details, see the Bharti Hexacom Ltd. company fact sheet and quarterly results.

#4 Tata Communications

Next on the list is Tata Communications.

Tata Communications is a global leader in digital infrastructure, providing connectivity, cloud, and cybersecurity solutions to businesses and service providers worldwide.

Tata Communications carries around 30% of the world's internet routes and connects businesses to 80% of the world's cloud giants and 4 out of 5 mobile subscribers.

As part of the Tata Group, the company plays a critical role in powering the digital economy, offering a range of services, including network solutions, IoT, unified communications, and managed security services.

With a robust global network that spans over 190 countries, Tata Communications enables seamless connectivity for enterprises across industries.

The company enables the digital transformation of enterprises globally, including 300 of the Fortune 500, unlocking opportunities for businesses by enabling borderless growth.

It operates the largest wholly owned and most advanced subsea fibre network, which underpins the internet backbone, where its network carries around 30% of the world's internet routes.

Recently, Tata Communications and Cisco have jointly decided to tap India's calling market (comprising cloud and on-premise) estimated to be in the US$ 300 to US$ 400 million (m) range and growing at a CAGR of 10 to 12%.

To facilitate enhanced connectivity, better network collaboration experiences, and increased safety, Tata Communications and Cisco have partnered to launch their Webex Calling solution in the country.

This cloud-based Public Switched Telephone Network (PSTN) solution is aimed at helping small and medium enterprises transition from on-premise phone systems to a global cloud calling system.

Tata Communications is looking to expand its global footprint, particularly in emerging markets, to reach a wider customer base and capitalise on growth opportunities.

For more details, see the Tata Comm company fact sheet and quarterly results.

#5 Tejas Networks

Next on the list is Tejas Networks.

Tejas Networks designs and manufactures wireline and wireless networking products, focusing on technology, innovation, and R&D.

The company's carrier-class products are used by telecom service providers, utilities, governments, and defence networks in 75+ countries. The company is currently a part of Panatone Finvest (a subsidiary of Tata Sons.

With the biggest order in its history received from BSNL, the performance of Tejas Networks is expected to turn around.

This is as BSNL stands at the cusp of a transformative opportunity in the Indian telecom market.

With the recent surge in subscribers driven by competitive pricing, the key to sustaining this growth lies in enhancing network quality and expanding 4G coverage.

To address this, the government's performance monitoring unit (PMU) will oversee the rollout of 4G services by BSNL, with the cooperation of Tejas, TCS, C-DOT, and others.

Further, in May of this year, state-run BSNL issued an advanced purchase order worth over Rs 150 billion to a consortium led by Tata Consultancy Services (TCS) for the deployment of a 4G network across the country.

Tejas Networks is part of the TCS-led consortium and will supply and service the Radio Access Network (RAN) equipment to BSNL.

With an order book over Rs 82 bn, the company is well-positioned to capitalise on upcoming opportunities such as BSNL's 4G/5G rollout, BharatNet phase 3, private telco broadband expansions, and utility network upgrades in India and around the globe.

Tejas Network's FY25 revenue is expected to be four times FY24 revenue due to the BSNL and BharatNet order execution.

For more details, see the Tejas Networks company fact sheet and quarterly results.

#6 Tata Teleservices

Next on the list is Tata Teleservices.

Tata Teleservices Limited, with its subsidiary, Tata Teleservices (Maharashtra) Limited, is a leading enabler of digital connectivity and cloud solutions to enterprises.

It offers one of the most comprehensive portfolios of ICT solutions for businesses in India under the brand name Tata Tele Business Services (TTBS). Its services range from connectivity, collaboration, cloud, SaaS, security, IoT, and a wide range of marketing solutions.

The company carries out its operations in over 60 cities.

Tata Teleservices has one of the widest reach in the enterprise segment through 1,500+ partners.

Tata Teleservices (Maharashtra) aims to drive future growth by focusing on digital transformation for SMEs.

The company plans to fortify its smart digital solutions portfolio. This includes expanding its offerings in converged communication solutions, cloud infrastructure, cybersecurity, collaboration and productivity, and digital connectivity.

It has undertaken several key initiatives. The company plans to enhance omni-channel communication through the Smartflo WhatsApp business platform.

The Smartflo UCaaS suite of solutions will offer a unified communication experience for both customer-facing roles and internal teams. Partnering with Microsoft, the company will facilitate cloud migrations, enhancing flexibility and agility.

Additionally, it is also enhancing its offerings in internet leased line and SD-WAN to maintain competitive margins.

For more details, see the Tata Teleservices company fact sheet and quarterly results

#7 HFCL

Next on the list is HFCL.

HFCL (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacturing of high-end telecom equipment, optical fibre, and optic fibre cable (OFC).

The company has designed several new technology equipment products, including 5G products, which are scheduled to be launched during the current financial year.

It has also entered some crucial technology partnerships with Qualcomm, Microsoft, and Wipro for developing cutting-edge 5G products and solutions.

The company provides its services in Europe, Asia Pacific, the Middle East, Africa and the US.

On 14 June 2024, the European Commission announced that HFCL is the only Indian company not involved in dumping optical fibre cable (OFC) in European markets.

This decision comes alongside the establishment of provisional anti-dumping duties on all other Indian OFC manufacturers. As a result, HFCL stands alone as the sole Indian company exempt from these duties.

The company has a long history in Europe, having operated there for over a decade. It has built strong relationships with leading European telecommunication companies and internet service providers across multiple countries.

In a major move for global expansion, HFCL announced a new optical fiber cable (OFC) plant in Poland back in February 2024.

This marks a significant step for the company as it targets the growing demand for OFC in key European markets.

Recently, HFCL announced a strategic move to solidify its presence in the defence sector. Through significant investment in R&D over the past five years, it developed a cutting-edge portfolio of defence electronic products.

The company set ambitious 2027 goals for revenue, profitability, and market presence. It has a strategic roadmap in place to achieve Rs 90-100 bn revenue range by boosting efficiency and expanding reach.

For more details about the company, check out HFCL factsheet and quarterly results.

#8 Optiemus Infracom

Next on the list is Optiemus Infracom

Optiemus is a leading global player in the telecom infrastructure and solutions space.

Optiemus manufactures high-quality optical fiber cables used in various applications, such as telecommunications networks, data centers, and FTTH deployments.

Distinguished for its wide-ranging portfolio, Optiemus Electronics engages in the production of various IT hardware products, including networking equipment, storage devices, wearable technology, laptops, and more.

Notably, Optiemus Electronics has been actively looking to participate in the Indian government's PLI scheme for IT hardware, a testament to its commitment to fostering growth and innovation in the electronics manufacturing sector.

The company has expressed its support for the government's proposal to extend the Production-Linked Incentive (PLI) scheme to electronic component manufacturing, which is expected to play a significant role in fostering a self-reliant India.

Further, the company in August 2024 forayed into telecom equipment manufacturing.

To promote indigenous design and manufacturing of telecom equipment in India, Optiemus is collaborating with Tejas Networks as a manufacturing partner for various telecom products, such as 4G Base Band Units, Remote Radio Head, ONT, ONU, and Broadband Switches & Routers.

Going forward, the company is intensifying its focus on IT hardware and telecom equipment, signalling its readiness to explore opportunities in the burgeoning electric vehicle (EV) sector.

For more details, see the Optiemus Infracom company fact sheet and quarterly results.

#9 Sterlite Technologies

Next on the list is Sterlite Technologies.

Sterlite Technologies (STL) is a global leader in optical communications products and solutions.

The company specialises in manufacturing optical fibres and fibre optic cables, the crucial backbone of photonics-based communication networks.

It invests heavily in research and innovation, developing cutting-edge optical fibre technologies to enhance transmission speeds, capacity, and efficiency.

Beyond just components, STL provides end-to-end solutions, including network design and deployment services, integrating photonics systems for large-scale telecom and data networking projects.

The company is actively exploring emerging applications of photonics in fields like 5G networking, data centres, and FTTx (Fibre-to-the-x), broadening the scope of its photonics expertise.

It has a significant global presence, with manufacturing, research, and services spanning India, China, Europe, and Brazil.

In 2024, the company partnered with UK-based Connexin to help deliver gigabit broadband connectivity in Nottinghamshire. This partnership is part of a ₺58 m government contract awarded to Connexin under Project Gigabit, aimed at bringing ultrafast broadband to rural areas.

The company will utilise its smart fibre deployment services to connect approximately 12,000 hard-to-reach premises in Nottinghamshire.

Further, Sterlite Technologies plans to transform education in underserved communities through the RoboEdge program.

Going forward, the company is committed to bringing high-speed broadband connectivity to homes and businesses through FTTH deployments, ensuring access to digital services and opportunities.

For more details, see the Sterlite Tech company fact sheet and quarterly results.

#10 Frog Cellsat

Last on the list is Frog Cellsat.

Frog Cellsat is a rapidly growing Indian telecom equipment manufacturer specialising in providing wireless coverage and capacity solutions.

Established with a focus on innovative communication technologies, the company develops and manufactures products like in-building solutions (IBS), small cells, repeaters, and a range of other telecom infrastructure solutions aimed at improving network coverage and connectivity.

The company manufactures 2G, 3G, and 4G Multi-band Digital RF Repeaters Multi-band Frequency Shift Repeaters, Multi-band Optical DAS system, relative software, and accessories.

It is one the most experienced and focused Telecommunication equipment suppliers. Presently it is providing products and services across Asia, Europe, Africa, and the Middle East.

In 2024, the company received a letter of acceptance from ACES India Private Limited, a licensed Neutral Host Operator in India and a wholly owned subsidiary of Advanced Communications and Electronics Systems Company, headquartered in Saudi Arabia.

The letter pertained to the design, manufacturing, supply, and services of an Active DAS System for Noida International Airport.

The transaction is one of the larger ones, has substantial value, and is likely to be completed during FY25.

Going forward, the company plans to strengthen its exports and enter new markets, capitalising on its expertise in telecom infrastructure to meet the rising demand for better connectivity worldwide.

For more details, see the Frog cellsat company fact sheet and quarterly results.

Conclusion

India is on the verge of becoming the world's second-largest smartphone market, with nearly 1 bn active devices expected in the next 2-3 years. By then, around 920 m mobile users are anticipated, including 88 m 5G subscribers.

The country's ambition to manufacture mobile phones worth Rs 126 bn by 2025-26 and the introduction of 5G, projected to contribute US$ 450 bn to the economy between 2023 and 2040, highlight the immense growth potential of the telecom sector.

To support this growth, the telecom industry has put forward key policy recommendations to the Ministry of Communications, aimed at driving digital empowerment and inclusivity.

These policies are crucial in creating a supportive environment for telecom operators and consumers alike.

Further fuelling the sector's expansion is the Rs 800 bn Digital Bharat Nidhi, which will fund telecommunication services in urban areas, boosting mobile, broadband, and telecom equipment.

Together, these initiatives are set to propel the growth of telecom companies, shaping India's digital future.

However, its essential to carry out one's own research before investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...