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Tech Mahindra poised to beat industry growth forecast in FY19; 5G services roadmap outlined

Updated : August 29, 2018 02:56 PM IST

Tech Mahindra, a mid-size Indian information technology (IT) services company, is all set to bet big on 5G technology as the game changer in the second half of this fiscal.

The company will be announcing 5G pilot projects and partnerships for the same by the end of September.

Chief executive officer and managing director, CP Gurnani said, “To me 5G is the only real wireless technology and it will translate to smart hospitals, schools, colleges and even manufacturing.”

The Indian IT industry expects the rollout of 5G technology globally by 2019, but believes it will gain traction only the following year.

Tech Mahindra believes 80 percent penetration of 5G services will only happen by 2023.

“Telecom contributes 43-44 percent to revenues currently and company network business is at 11-12 percent. For us, the 5G pilots will translate to business by FY20, and I expect a significant increase in telecom revenues post that. The model of investment for 5G, whether capex or capex to opex, remains to be seen,” Gurnani added.

India is still to conduct the 5G spectrum auctions, the timelines of which seem blurry as the country steps into election mode.

By most Indian telecom players have indicated that fibre technology will take precedence over 5G spectrum, at least for the immediate future.

Meanwhile, Tech Mahindra is also betting big on other new age technology like Blockchain, AI and VR; with the company even partnering to set up the country's first Blockchain district in Hyderabad.

Industry-body, Nasscom, has forecast a growth in the range 7-9 percent for the sector in FY19, but Gurnani said, "Global work indicators are looking extremely positive despite currency volatility and I expect Tech Mahindra to definitely beat industry forecast for this fiscal comfortably.”
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