Jio is the biggest beneficiary of change in market dynamics as its market share went up from 21.6 percent to 39.7 percent.
Telecom Tariffs: The news coming from the telecom sector is not a pleasant one as it suggests that once the Lok Sabha Elections 2024 are over, telecom operators like Airtel and Jio might raise their tariff rates. This is according to an analyst report from Antique Stock Broking.
India goes to polls on April 19 which will be held in seven phases till June 1.
The analyst report quoted by PTI while calling the tariff rise ‘imminent’ states that the telecom industry could witness a 15 to 17 percent hike in prices post the Lok Sabha Elections.
It is reported that Bharti Airtel could emerge as the primary beneficiary of the price hike with its ARPU (Average Revenue Per User) going up from Rs 208 to Rs 286 by the end of FY 27.
The brokerage expects Bharti Airtel’s revenue to grow at twice the industry average in the next three years owing to a hike in the tariffs, 2G upgradation, growth of enterprise and Fibre to Home network and fall in capital expenditure after 5G rollout.
“While challenges do exist as Bharti has chosen a different 5G rollout path versus key competitors, we believe it is unlikely to dent Bharti’s subscriber base or growth significantly. We also believe valuations do not reflect the emerging highly positive macro telecom sector environment,” Antique Stock Broking noted in the report.
The report also reveals how Jio and Airtel have been gaining increasing market share in the last 5.5 years at the expense of Vodafone Idea and BSNL. Jio has been the biggest beneficiary of this change in market dynamics, with its market share going from 21.6 percent to 39.7 percent during the said period.
(With PTI inputs)