Telecom Industry on Track to Witness Stable Revenue Growth in FY23

Follow Us

Telecom Industry Revenue Growth

The telecom industry in India is expected to witness strong revenue growth in the financial year 2023. The industry will witness revenue growth on the back of increased tariff charges as well as a sturdy rise in data usage in the country. The sector has been quite adversely affected by the debt due to factors such as the Adjusted Gross Revenue (AGR) case verdict which created massive liabilities for the telcos.




Growth of Telecom Sector

According to a report from IANS, a Brickwork Ratings report states that while the pandemic had a bad influence on the other sectors, surprisingly, it turned out to be a boon for the telecom sector as corporates were dependent on telecom operators for the smooth running of their operations. This resulted in an increase in the sector’s key growth factors such as ARPU and MOU. The report further states that the tariff hikes and increased data usage may further ease the difficulties in front of the telecom industry as it has already increased the revenues from 6% to 8% in FY22.

In addition to this, a larger subscriber shift towards the 4G network is impending as the world has turned online for work as well as learning. This will further increase the revenues for the telcos in the country. It is to be noted that there was a 37% increase YoY in average wireless data usage in the second quarter of the financial year 2022. Telcos also imposed tariff hikes recently of about 20% to 25% which is further going to aid the industry.

The report suggests that price hikes are quite uncommon in India as it is mainly dominated by three telcos and has a highly competitive scenario. However, the recent tariff hikes will help in improving the ARPU for the telcos helping them with their financial troubles and allowing them to invest better in the upcoming 5G network. Although, price hikes may prevent more subscribers from moving to 4G from 2G. Around 44% of the subscribers in India belong to rural areas and hence, the price hikes may not be that encouraging.

Recent Comments

Faraz :

Yes happens in Android also. But for few devices VoNR has become stable after few updates. Most of us to…

Airtel Partners With Indian Army to Connect Villages Along LOC…

Faraz :

No.. Parliament panel is wrong.. Now that everything is successfully tested and rollout started.. BSNL should just focus in achieving…

BSNL Should Take Help of Foreign Players till Indigenous Tech…

jaganathsamal :

Even when the toggle is on, calls fallback on VoLTE. You can check at the status bar on top which…

Airtel Partners With Indian Army to Connect Villages Along LOC…

ved :

I see Voice over 5G Standalone in toggled on.

Airtel Partners With Indian Army to Connect Villages Along LOC…

TheAndroidFreak :

Off Topic : 8s Elite will compete with Dimensity 9350. Dimensity has gone mad. According to me,there was no need…

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

Load More
Subscribe
Notify of
9 Comments
newest
oldest most voted
Inline Feedbacks
View all comments