In the second quarter of the fiscal year 2025, the Indian telecom industry experienced significant growth. The revenues reached Rs 674 billion, marking an 8% increase from the previous quarter and a 13% increase from the previous year. Reports suggest the industry is planning another tariff hike that could make your bills more expensive
New Tariff Hike Details From Indian Telecoms
This growth has been primarily fueled by several rounds of tariff hikes implemented over the last few years. With the most recent increase in July 2024, the average revenue per user (ARPU) has nearly doubled. It has risen from Rs 98 in September 2019 to Rs 193 in September 2024.
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Despite this growth, returns remain low relative to the high level of investment and customer data consumption, prompting analysts to predict more frequent increases in tariffs.The new telecom tariff hike is likely to boost ARPU to over Rs.300 making it profitable for companies to invest in new tech.
Future Tariff Strategies and Market Impact
Motilal Oswal, a noted analyst, anticipates another significant telecom tariff hike towards the end of 2025. He projects a 15% increase in December 2025 that could potentially elevate Airtel’s ARPU to over Rs 300. This strategy aims to enhance the profitability of telecom operators who are striving to secure more substantial returns on their investments.
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Among the service providers, Bharti Airtel has seen the most substantial benefits from these telecom tariff hikes, with its ARPU showing a robust growth of 17 per cent CAGR over five years. While Airtel and Jio continue to expand their market shares, Vodafone Idea’s extensive capital expenditure plans might slow their growth.
These changes underscore a broader effort within the industry to improve service offerings and financial outcomes, setting the stage for ongoing adjustments in the telecom sector’s economic landscape.We can expect more details about teecom tariff hikes when they take place next year.
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