ARPU Growth for Telecom Players to Decelerate in Q3 FY23: ICICI Securities

Airtel's ARPU may grow 2% QoQ to Rs 194, while Jio's ARPU is likely to remain flattish at Rs 177 levels. Vodafone Idea's ARPU may be up by 2.5% at Rs 134. The ARPU growth for the telecom players is decelerating because of delays in the premiumisation of services.

Highlights

  • If you are an avid follower of the Indian telecom industry, you must have heard this term - ARPU which stands for average revenue per user, come up a lot.
  • The telcos use this term a lot and even the investors in the telecom companies keep a tight eye on their ARPU figure.
  • ARPU is nothing but an average of how much a telco earns from each of its customers.

Follow Us

ARPU

If you are an avid follower of the Indian telecom industry, you must have heard this term - ARPU, which stands for average revenue per user, come up a lot. The telcos use this term frequently, and even the investors in the telecom companies keep a tight eye on their ARPU figures. ARPU is nothing but an average of how much a telco earns from each of its customers. The higher the ARPU, the better would be the revenues. In Q3 FY23, ICICI Securities estimates that the ARPU growth for the Indian telecom players would decelerate. This would be because the telcos didn't hike the tariffs this time for their mobile customers.




Also Read - Airtel to See Highest QoQ Revenue Growth Amongst Private Telcos

Airtel, Jio and Vi ARPU Estimate for Q3 FY23

According to a recent report from ICICI Securities, Airtel's ARPU may grow 2% QoQ to Rs 194, while Jio's ARPU is likely to remain flattish at Rs 177 levels. Vodafone Idea's ARPU may be up by 2.5% at Rs 134. The ARPU growth for the telecom players is decelerating because of delays in the premiumisation of services.

Airtel would still reach very close to its short-term ARPU target figure of Rs 200. However, the ARPU concern for Jio is there. While the telco has the most active subscribers in India, its ARPU is not as good as Airtel's. Further, the ARPU growth for Jio would seem to come under a flat trend without tariff hikes. Amongst the private telcos, Jio has the most affordable tariffs, and that is why its ARPU is always behind Airtel's ARPU figure.

The Indian telecom operators are expected to hike tariffs later this year. It was highly anticipated that the telcos would increase tariffs by the end of FY23. Also, Airtel and Vodafone Idea (Vi) have time and again said that they are not afraid to hike tariffs as the current tariffs are unsustainable for their business.

Reported By

Editor in Chief

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

Recent Comments

. :

Send ACT VOLTE to 53733 volte gets activated in a day

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

rahul_yadav :

There might be some issue with VoLTE activation with your no. I have 3 Bsnl sim in my Family in…

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

Sujata :

And here I'm getting bsnl LTE 2100 from a tower 7.3 km away. I double checked the distance from tarangsanchar…

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

TheAndroidFreak :

What's the use of that? Total of 40000 sites with 700Mhz/2100Mhz LTE. It's not enough for now. They should have…

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

Riju vv :

It is not 1L sites. It is 1.19L sites. There are two separate deployment projects in progress.The first is a…

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

Load More
Subscribe
Notify of
1 Comment
newest
oldest most voted
Inline Feedbacks
View all comments