An escalation in the ongoing conflict between Hamas and Israel may increase the costs of imported 5G network equipment by Rs 2,000-2,500 crore, according to a report in The Economic Times. The report, citing industry experts, also stated that this escalation may delay the rollout of next-generation network services by India's major telecom operators. If the conflict prolongs and intensifies, the Indian rupee is likely to depreciate around 3-4 per cent against the US dollar. This could lead to a rise in telecom companies' debt servicing costs, thereby affecting profitability in the upcoming quarters, said those familiar with the subject. Approximately two-thirds of the telecom equipment used in local phone networks is imported from foreign vendors such as Ericsson, Nokia, and Samsung. Rohan Dhamija, Head of Analysys Mason for India and West Asia, told The Economic Times, "The Israel-Hamas conflict has not yet caused an alarming fall in the rupee against the US dollar.