How rising heatwaves can be a concern for the telcos

The increasing temperatures in many parts of India are expected to raise air-conditioning expenses at telecom tower installations. These installations are critical for ensuring uninterrupted operations of base stations for 24×7 mobile connectivity.

Industry executives and analysts have claimed that if heatwave conditions persist for the next month, the power and fuel costs required to effectively run tower installations by telecom operators’ like Jio, Airtel, and Vodafone Idea may increase. Typically, the tower companies pass on any change in energy costs to telcos.

How the heatwave can affect mobile connectivity

Industry experts have also warned that the current scenario could also slow down tower network expansions in the near term. It’s also important to note that Indian tower companies are already accustomed to working in hot weather conditions.

A telecom expert who has worked closely with tower companies and is now a partner at Red Seer Strategy Consultants, Mohit Rana said: “If the intense heatwave conditions don’t ease anytime soon, causing a serious rise in ambient temperature, telcos could face around a 3-5% increase in power and fuel costs towards effective air-conditioning of active infrastructure elements in telecom towers, especially to ensure there are no connectivity/coverage hiccups.”

Rise in diesel prices can be challenging for telcos
The expenses for power and fuel, which are essential for running telecom towers, account for 45-55% of a telco’s annual network operating cost. Diesel accounts for nearly a third of this cost at the pan-India level. The network operating cost represents about 20-24% of a telco’s sales. ToI