Budget 2024: Customs duty hike to increase costs for 4G, 5G network rollout

The cost of upcoming 4G and 5G network deployments is expected to rise following Finance Minister Nirmala Sitharaman’s proposal to increase the basic customs duty (BCD) on printed circuit board assemblies (PCBA) from 10 per cent to 15 per cent in the Budget 2024.

Around 80 per cent of PCBAs, which are crucial components for telecom equipment like mobile base stations, are imported. More than 50 per cent of the PCBAs used in optical fibre network equipment, mobile switching centres (MSCs), and routers are also sourced from abroad, according to a report by The Economic Times.