New Delhi . The income of the Indian telecom industry has increased by 8 percent on a quarterly basis and 13 percent on an annual basis to Rs 674 billion in the JulySeptember period of FY25. The reason for this strong growth is the increase in mobile tariffs. This information was given in a report.
India's telecom industry's quarterly earnings have almost doubled since September 2019 due to three hikes in smartphone tariffs, which means industry earnings have grown at a compound annual growth rate of 14 percent over the past five years, according to a Motilal Oswal Financial Services Ltd report. Growth rate (CAGR).
Given the Indian telecom industry's consolidated market structure, high data consumption, low ARPU and inadequate returns generated by telcos, “we expect to see further tariff increases going forward,” he said.
The average revenue per unit (ARPU) of the telecom industry is set to almost double from Rs 98 in September 2019 to Rs 193 in September 2024 due to the tariff hike.
However, as a result of the sharp tariff hike, the industry's customer base is down to 115 crore in September 2024, down from 117 crore in September 2019.
Bharti Airtel has been the biggest beneficiary of the tariff hike among telecom companies. During this period, the company's ARPU has increased by 2.2 times. It has grown at a CAGR of 17 percent in the last five years.
“We believe the strong improvement in data subscription ratio has been one of the key reasons for Bharti Airtel's ARPU growth,” the report said.
Over the 20192024 reporting period, Bharti Airtel's earnings have grown 2.6 times, meaning the company's earnings have grown at a CAGR of 21 percent over the past five years.
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Image Credit: KhasKhabar.