Airtel and Vodafone Idea ARPU Will Grow at Least 6% Helped by Jio’s IUC Introduction

The past few months have not necessarily been the best months for the incumbent telecom operators in the industry, Bharti Airtel and Vodafone Idea. These two telecom companies have come under the burden of the AGR dues which go as high as Rs 90,000 crore for them and have to paid off as early as in January. However, as per an ETTelecom report on the matter, the move of the competing telecom operator, Reliance Jio to charge its customers for the voice calls is going to be a positive thing for the other two players. As a result of this, Vodafone Idea and Bharti Airtel are expected to see improvement in wireless revenue in the third quarter of FY 2020 as per the brokerages.

  • Make Telecom Talk My Trusted Source
  • Source of Google
  • Source of Google

airtel-vodafone-idea-arpu-iuc

Airtel and VIL Revenue to Witness Growth

ICICI Securities remarked on this matter by saying, “Airtel and VIL’s mobile revenues to grow by 4.2% and 1.5% quarter-on-quarter respectively on higher 4G subscriber addition, low base on seasonality, partially offset by lower interconnect usage revenue as Jio starts charging for voice calls.” As per the brokerage firm, Vodafone Idea will witness a rise of 1.5% in its revenue, whereas, the other incumbent, Bharti Airtel will witness a rise of 3% in its revenue which will be helped by Average Revenue Per User (ARPU) gains for both the telecom companies.

On similar lines, Emkay research has remarked, “For Bharti Airtel, the focus on consumer uptrend with ‘Airtel Xstream’ and ‘Airtel Thanks’ will complement revenues with growing data subscribers on the network. We estimate ARPU for Bharti and VIL to improve by 6% and 7% q-o-q, respectively.” Along with this, the brokerage firm noted that the consolidated EBITDA for the Sunil Bharti Mittal led telecom operator is unlikely to decline.