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

Faraz :

So do they plan to pay all AGR dues, or are they waiving white flag here ?

Vodafone Idea Says No Legal Options Left After SC Rejects…

Rahul Yadav :

Bsnl is still cheaper than other you need find plan which suits you. BSNL has multiple plans with just minor…

BSNL Reports Rs 262 Crore Profit in Q3, Marking First…

Faraz :

It is much better in Kerala, T.N, Rajasthan and H.P circle. Improving slowly in A.P, Punjab and Haryana circle. Might…

BSNL Reports Rs 262 Crore Profit in Q3, Marking First…

Faraz :

Don't work, Now even can't send SMS on that number as if it's blocked.

BSNL Reports Rs 262 Crore Profit in Q3, Marking First…

Faraz :

With this article, there's another news too on same day, Where Vi is asked to pay 6090 crore before 10…

BSNL Reports Rs 262 Crore Profit in Q3, Marking First…

Load More
Subscribe
Notify of
guest

1 Comment
newest
oldest most voted
Inline Feedbacks
View all comments