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There has been a massive increase in the outlay to build networks for the Defence forces (₹2,150 crore compared with ₹285 crore earlier). Next, it has also focused on e-learning, . The allocation has increased two-fold over the previous year to ₹625 crore. Otherwise, as usual, state-run BSNL and MTNL continue to takeaway large portions of allocations to the Communications Ministry. Optical fibre network of 7.7 lakh km, connecting 2.5 lakh villages is on course over the next few years.
Background
Like in the last few years, increased spends on telecommunications and IT continue to increase.
Indian companies from the IT space participating in the domestic deal space have been winning deals not only on these allocations, but also outside of these from various state agencies. So, TCS, Infosys, Mindtree, RCom, Wipro, CMS and CMC have all been able to tap the domestic market well.
VerdictThe move to increase spends on building Defence networks, carried out mostly by BSNL, should help free up spectrum over the next few years so that it could be put to civilian uses. Training and education companies such as NIIT and Educomp should benefit from the e-skilling initiative as they already have entrenched presence in many government and private schools. The national optical fibre network would benefit broadband service providers such as Airtel, RCom and BSNL.
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