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The major telecom operators in the country are expected to report a 5 to 6.5 per cent quarter-on-quarter (QoQ) increase in average revenue per user (ARPU) in their upcoming Q3FY25 results, according to a report by Centrum.
The report noted that this growth is attributed to the tariff hike implemented by the companies in July 2024. It said "The three telecom operators are expected to report 5 to 6.5 per cent QoQ increase in ARPU led by July'2024 tariff hike". The report suggested that the impact of SIM consolidation, which occurred following the tariff hike, is expected to subside by the third quarter of FY25. The report also highlighted the improving pricing environment in the telecom sector, now dominated by three major players and one smaller operator. The July 2024 tariff hike by all three major telecom companies reflects a shift in focus towards enhancing average revenue per user to improve the overall return on capital employed (ROCE). Additionally, rising digital penetration and widespread adoption of 4G services are expected to support the performance of internet-based companies. The sector's emphasis has gradually shifted toward profitability as operators look to capitalize on increasing digital adoption. Among the top players, Reliance Jio is anticipated to lose around 2 million subscribers QoQ, while Bharti Airtel is expected to gain approximately 3 million subscribers over the same period. In contrast, Vodafone Idea (VIL) is projected to lose nearly 4 million customers QoQ, highlighting its continued struggle to retain its subscriber base. The report said "Reliance Jio is expected to lose around 2mn subscribers QoQ; while Bharti Airtel is expected to add around 3mn subscribers QoQ". Despite subscriber losses for some operators, the data usage per customer remains strong, driven by the growing adoption of mobile internet services. Both Reliance Jio and Airtel have been aggressively expanding their 5G networks across India, and any updates on their progress in 5G implementation will be closely monitored by investors. Investors and industry experts will be keenly watching the Q3 results, particularly to gauge the impact of the tariff hike, subscriber dynamics, and updates on 5G expansion plans. (ANI)
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