Shares of major telecom companies in India surged three to five percent on Friday ahead of the much-awaited launch of 5G services which is scheduled on October 1, 2022.

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The S&P BSE Telecom index rose 58.81 points and closed 3.4 percent higher at 1744. Shares of Bharti Airtel closed at Rs 799, up 4.49 percent from the previous close on the BSE. Vodafone Idea shares also closed green, gaining over 4 percent on the BSE.

Shares of Reliance Industries, the parent company of telecom service provider JIO closed at Rs 2,377, up 2.25 percent from the previous close on the BSE.

The cumulative economic impact of 5G on India is estimated to reach $450 billion by 2035. Capable of supporting ultra-high-speed internet services, the fifth generation of 5G is expected to unleash new economic opportunities and societal benefits, serving as a transformational force for Indian society.

"Prime Minister, Narendra Modi will launch 5G services in India on October 1, 2022, and also inaugurate the sixth Edition of India Mobile Congress 2022 to be held from October 1 to October 4 at Pragati Maidan, New Delhi," added a press release.

Also read: Bharti Airtel says would have preferred to defer 5G rollout by a year, given a choice

It is pertinent to mention here that 5G offers speed multiple times faster than 4G, supports lag-free connectivity, and can enable billions of connected devices to share data in real-time.

India's biggest ever auction of telecom spectrum held recently received a record Rs 1.5 lakh crore of bids, with Mukesh Ambani's Jio cornering nearly half of all the airwaves sold with an Rs 88,078 crore bid.

Also read: 5G is here in India, but how much will you be paying for it?

Telecom tycoon Sunil Bharti Mittal's Bharti Airtel made a successful bid of Rs 43,084 crore, while Vodafone Idea Ltd bought spectrum for Rs 18,799 crore. Gautam Adani's group, whose entry in the auction was billed by some as another flashpoint in the rivalry with Ambani, paid Rs 212 crore for 400 MHz. Adani group bought spectrum in the 26 GHz band, which is suitable for setting up a private network for end-to-end communication.

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First Published:Sept 30, 2022 5:38 PM IST