ARPU of Bharti Airtel and Vodafone Idea to Hit Rs 130 by December: Report

The ARPU or the Average Revenue Per User, an important financial metric for the telecom operators in the industry might improve by 30% in the upcoming December thus highlighting that the industry, which has been witnessing revenue erosion from the past two years, will finally be on the path to attaining financial health. As per an ET Telecom report, Neil Shah, research director, IoT, mobile and ecosystems, at Counterpoint Technology Market Research said that currently ARPU figures of Bharti Airtel and Vodafone Idea are hovering between Rs 88 and Rs 100 and by the coming December they should be resting around Rs 130.

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Rising ARPU Helped by Minimum Recharge Packs

According to the industry experts and insiders, the increase in the ARPU will come because of the introduction of things like the minimum recharge plans which make it mandatory for the prepaid customers to recharge their numbers monthly thus virtually ending the lifetime free incoming calls. The telecom operators have also made changes to their plans and revised some of the rates, for example, the largest telecom operator Vodafone Idea and Bharti Airtel have increased international roaming tariffs.

Shah further added to his statement saying that people are continually upgrading their smartphones to drive data consumption. “People are willing to pay more for these services,” he said. “Their data consumption is expected to go up from 1-1.5 GB per day to 2 GB per day by the end of this year, and this means they will be ready to absorb any increase in prices.”