One thing that the telecom operators have been continuously complaining about for some time now is the low average revenue per user (ARPU). In a fresh Indian Telecom performance indicator report for April to June 2021 from the Telecom Regulatory Authority of India (TRAI) suggests that ARPU for wireless services has increased by 1.04%.
From Rs 103.58 in Quarter-Ending (QE) March 2021, the ARPU from wireless services for the sector has increased to Rs 104.66. It denotes a growth of 1.04% for the quarter. As per TRAI, the ARPU from wireless services has seen a growth of 16.13% YoY basis this quarter.
Postpaid ARPU Decreased While Prepaid ARPU Increased
It feels like Indians aren’t spending more on high-end postpaid plans anymore. The postpaid ARPU fell to Rs 215 per month in QE June 2021 compared to Rs 226 per month in QE March 2021. At the same time, the prepaid ARPU saw positive growth during the quarter.
From Rs 97 per month in QE March 2021, the prepaid ARPU increased to Rs 99 per month in QE June 2021.
The government made a handsome revenue during the quarter as well. The license fee for the telecom sector increased to Rs 4,103 crore in the QE June 2021 as compared to Rs 3,979 crore in QE March 2021. This denotes a 3.13% growth in the quarterly license fee and 16.36% growth YoY basis.
The great thing was the growth in the number of total internet subscribers in the country. The number of internet subscribers in India grew to 833.71 million at the end of June 2021 from 825.30 million internet subscribers at the end of March 2021. This denotes a quarterly growth rate of 1.02%.
It is worth noting that out of the 833.71 million internet subscribers at the end of June 2021, 23.58 million subscribers were wired internet subscribers, while 810.13 million subscribers were wireless internet subscribers. The growth in ARPU from wireless services should continue further with the telcos pushing tariffs upwards.
