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regular-article-logo Tuesday, 03 December 2024

Telcos ready to raise tariffs

The present ARPU does not justify any telecom operator to offer 5G services in the country

R. Suryamurthy New Delhi Published 27.04.22, 04:20 AM
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Be ready for an increase in your mobile bills as the telecom operators are mulling another round of tariff hike to improve their average revenue per user (ARPU), while jetissoning low-paying and inactive subscribers.

Sources said the telcos plan to hike tariffs till the time they launch 5G services. The present ARPU does not justify any telecom operator to offer 5G services in the country. The tariff hike would be a periodic one so that it is gradual and sequenced in such a manner that it does not have a significant impact on the subscriber base.

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The operators hiked pre-paid plans around 20 per cent in end-November. The hike had resulted in a sequential improvement in ARPU in the third quarter and company executives had said the effect of the hike would also be visible in the fourth quarter.

Data showed Bharti Airtel reported ARPU of Rs 163 per month in the quarter ended December, while Jio’s ARPU was Rs 151.6 and Vodafone’s Rs 115. Bharti Airtel expects to reach ARPU of Rs 200 by the end of this year.

Similarly, Vodafone Idea has been vocal about increasing ARPU for the telecom industry, though the company has not made any projection. The telecom subscriber base declined to 116.6 crore in February, with Reliance Jio and Vodafone Idea losing customers. Bharti Airtel was the only net gainer, according to regulator data.

Jio has been losing customers since December. It lost 36.6 lakh subscribers in February taking its total wireless customer base to 40.27 crore.

Vodafone Idea lost 15.32 lakh mobile subscribers, while BSNL 1.11 lakh. Bharti Airtel added 15.91 lakh customers in February. Brokerage Emkay Global said the fourth quarter would reflect the full impact of the tariff hike implemented by the operators.

With a high proportion of subscribers in long-dated recharges, Jio might only see partial benefits, it said. The government plans to auction the 5G radio waves in May-June.

A study by Ericsson shows 26 per cent of mobile subscriptions in India are expected to be 5G at the end of 2026.

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