Memory Shortages Pose Cost Challenge for Airtel Amid Limited Impact on Network Rollout

Telecom Operators Face Cost Pressures due to Rising Memory Prices

Randeep Sekhon, Chief Technology Officer of Bharti Airtel, has noted that telecom operators are beginning to experience cost pressures due to rising memory prices. These price increases are driven by supply chain disruptions linked to the West Asia conflict and accelerating AI infrastructure build-outs. Despite this, the overall impact on network deployment remains limited.

The comments come as equipment makers such as Nokia warn that shortages of key components like memory chips are pushing up costs for wireless telecom gear and network infrastructure, including 4G and 5G radio access network (RAN) products. Nokia has already started to see the effects of these shortages, with supply constraints translating into higher equipment costs.

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Vibha Mehra, Nokia India country manager, has echoed this trend, noting that memory prices had already been rising prior to the conflict as manufacturing capacity shifted from consumer electronics to higher-margin AI-focused memory. The conflict has exacerbated these price increases, with Mehra stating that the situation has become more challenging after the war.

Despite these pressures, Sekhon indicated that operators like Airtel are unlikely to see any significant disruption to rollout plans. The cost increases remain localised to specific components, allowing telcos to manage capex efficiently while continuing 5G expansion.

In an effort to mitigate the impact of these cost pressures, Nokia has initiated discussions with telecom operators on the increases. This move is aimed at ensuring that operators can manage their costs effectively and continue to deploy 5G networks without significant disruptions.