Postpaid ARPU Declined to Rs 247 in September 2019 Quarter, Prepaid ARPU Saw a Slight Increase

The postpaid ARPU per month dipped to Rs 247 in the quarter that ended on September 30, 2019. However, in the coming quarters, we may see the postpaid ARPU rising again as telcos even scrapped basic postpaid plans of Rs 299 and Rs 399.

Telecom Subscriber Base Increased in July-September Quarter

Going by the data released by Trai, the telecom subscriber base in the July-September quarter was increased by 8.29 million. Telcos added 8.29 million new users overall. As a result, the total wireless subscriber base increased from 1,165.46 million at the end of June 2019 to 1,173.75 million at the end of September 2019, registering a growth rate of 0.71% over the previous quarter, said Trai. As for internet subscribers, the number increased from 665.31 million to 687.62 million.

Talking about the consumption of users, the overall Minutes of Usage (MOU) per subscriber per month for wireless service declined by 1.49% from 701 for Quarter ended on June 30, 2019, to 691 in September quarter. The Prepaid MOU per subscriber per month declined from 705 in June 2019 to 694 in September 2019; Postpaid MOU per subscriber per month also declined from 626 to 617.

The average wireless data usage per subscriber per month during the quarter was 10.37GB and the average cost per GB was Rs 6.98. The data consumption may not be the same in the coming quarters as telcos hiked the prepaid tariff prices recently.

A recent report added that the prepaid users are choosing monthly plans under Rs 400 or Rs 300 over the long-term plans which now cost around and over Rs 600. At Rs 698/Rs 699, telcos are offering 2GB data per day for 84 days; The same plan before the tariff hike used to cost less than Rs 500. In this case, the data consumption will come down from prepaid users, and at the same time, subscribers may be inclined towards postpaid mobile services.