Your mobile bill may rise 12-15% in coming months: Report
What's the story
India's telecom sector is likely to witness a tariff hike of 12-15% in the next four to five months. The prediction comes from a report by Centrum Institutional Research, which cites market consolidation as a key factor for the upcoming price adjustments. The report notes that with only 3+1 players, Reliance Jio, Bharti Airtel, and Vodafone Idea Limited (VIL), the pricing environment has become more favorable for such hikes.
Revenue projections
ARPU growth for telcos in Q2FY27
The report also predicts that Bharti Airtel, Reliance Jio, and Vodafone Idea Limited will see a 0.8-2.0% quarter-on-quarter (QoQ) increase in average revenue per user (ARPU) in Q2FY27.
The growth is likely to be driven by factors such as migration from 2G to 4G/5G networks, an increase in postpaid subscriptions, and more days in the quarter under consideration.
Market dynamics
Subscriber additions and data usage trends
The Centrum report predicts Reliance Jio will add around eight million subscribers QoQ, while Bharti Airtel will gain about three million wireless subscribers in India during the same period.
Vodafone Idea Limited is expected to add one million customers QoQ.
The report also highlights that data usage per customer is likely to remain strong due to the increasing penetration of 4G/5G networks across India.
Network expansion
Jio's expanding footprint and projected growth
The report highlights that Reliance Jio and Airtel have covered over 95% of districts with their 5G networks. Vodafone Idea, meanwhile, has launched its 5G services in some 200 cities and is expanding its coverage.
For Reliance Jio, the report estimates a QoQ addition of eight million subscribers to reach a total of 541 million. This is likely to push ARPU up by 1% QoQ to ₹218 per month.
Subscriber estimates
Bharti Airtel and Vodafone Idea Limited's expected performance
Bharti Airtel is expected to add three million subscribers QoQ, taking its total to 380 million. The company's ARPU is likely to increase by 2% QoQ to ₹269 per month.
Vodafone Idea, on the other hand, is projected to gain one million subscribers during the same period, bringing its total subscriber base up to 194 million. Its blended ARPU is also expected to see a slight increase of around 0.8% QoQ to to ₹178 per month.