Telecom Sector ARPU in India Goes Up, Yet Telcos Want Tariff Hike
India's wireless telecom sector reported higher ARPU in the March 2026 quarter, but operators such as Airtel and Vodafone Idea continue to advocate for tariff structure revisions as they look to improve revenue and support future network investments.
Bharti Airtel, and Vodafone Idea (Vi), the two private telcos in India have been advocating for a revised tariff structure. This is despite the sector witnessing growth in the wireless average revenue per user (ARPU). The ARPU is only going to go up as data consumption rises in the coming quarters. The Telecom Regulatory Authority of India (TRAI) recently came out with the performance indicator report for the last quarter FY26, and the report highlights some key stats which are worth noting.
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Key Highlights
Wireless ARPU in India rose to Rs 196.04 in the March 2026 quarter.
Industry-wide ARPU increased 0.76% sequentially and 7.15% year-on-year.
Prepaid ARPU reached Rs 196.22, higher than postpaid ARPU of Rs 194.31.
Airtel and Vodafone Idea continue to advocate for tariff structure revisions.
Rising ARPU suggests consumers are spending more on telecom services.
Operators are expected to pursue tariff restructuring rather than simple price hikes.
We are not focusing on the ARPUs of telcos individually here, but will talk about the ARPU of the industry. According to the TRAI report, the monthly ARPU for wireless services increased by 0.76% from Rs 194.57 in QE December 2025 to Rs 196.04 in QE March 2026. On a YoY basis, this is a growth of 7.15%.
If we talk just about the prepaid services, then the ARPU went up to Rs 196.22 and for the postpaid mobile services, the ARPU stood at Rs 194.31. It looks like the prepaid ARPU is now beating the growth for postpaid ARPU industry-wide, and this is something the telcos will be closely monitoring.
While postpaid users are important for the telcos, they comprise a very small user base. For example, Airtel recently explained that its postpaid mobile base comprises only about 3% to 4% of the total data consumption.
The growth in ARPU suggests one thing, that the consumers are willing to pay more. However, the telcos are not really satisfied with the current growth, and thus, they are looking for further tariff hikes. But this time, it will be a tariff structure revision instead of just a price increase like the previous times. What will be this new structure, we will talk about it soon, so stay tuned to TelecomTalk until then.
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FAQs
What was India's wireless ARPU in the March 2026 quarter?
According to TRAI's latest Performance Indicator Report, India's wireless ARPU increased to Rs 196.04 in the quarter ended March 2026, up from Rs 194.57 in the previous quarter.
Why are telecom operators seeking tariff changes despite ARPU growth?
Telecom operators believe current ARPU levels are still not sufficient to support long-term network investments and profitability goals, leading them to seek tariff structure revisions despite the ongoing growth in revenue per user.
Did prepaid ARPU grow faster than postpaid ARPU?
Yes. TRAI's latest data shows prepaid ARPU reached Rs 196.22, while postpaid ARPU stood at Rs 194.31, indicating that prepaid users are currently contributing higher average revenue on an industry-wide basis.
Which telecom operators are pushing for tariff structure revisions?
Bharti Airtel and Vodafone Idea (Vi) have been advocating for a revised tariff structure even as the telecom sector's ARPU continues to improve.
What does ARPU mean in the telecom industry?
ARPU, or Average Revenue Per User, is a key telecom metric that measures the average monthly revenue earned from each subscriber. It is often used to assess the financial health and monetisation capability of telecom operators.