Telecom companies can increase the tariff after the elections. After the general elections, there will be a growth of 15%-17% in the Indian telecom industry between July and October. Among these, Bharti Airtel can be the first to increase the tariff plan.
Tariff Hike: There is an atmosphere of Lok Sabha elections in the country these days. The results of Lok Sabha elections will also be revealed in the first week of June. Meanwhile, information has come to light that telecom companies may increase tariffs after the elections. After the general elections, there may be 15%-17% growth in the Indian telecom industry between July and October. Among these, Bharti Airtel can be the first to increase the tariff plan. The last time telecom tariffs were increased by 20% was in December 2021.
Intention to increase revenue
In this case, the analyst of Antique Stock Broking believes that Bharti Airtel will increase its average revenue per user (ARPU) from Rs 208 to Rs 286 by the financial year 2027. Actually, keeping in mind the global standards, Airtel is insisting on increasing the ARPU from Rs 200 to Rs 300. In such a situation, Sunil Mittal’s telecom company can earn the most profit from the tariff increase. He also says that the customer growth of this telecom company will also increase at the rate of 2% annually, whereas the growth rate of the telecom industry is 1% annually.
Tariff increase
Whereas Jio started its telecom services in 2016 and increased the tariff by 20-40% for the first time in December 2019 and then by 20% in December 2021. Bernstein analysts say Bharti Airtel leading the tariff hike will bring the telco’s ARPU to over Rs 260 by FY26. Whereas there will be 15% tariff growth in all telecom operators.
Market dominance
Also, Airtel and Jio will collectively dominate 85% of the market in the medium term. Enlist claims that the increase in tariffs will help boost average revenue per user, increase return ratios and strengthen the industry.
Airtel and Jio
In the last 5.5 years, Bharti Airtel and Jio telecom companies have dominated the market. This is why VI has decreased from 37.2% in September 2018 to 19.3% in December 2023. Airtel’s share has increased from 29.4% to 33.0% during this period. According to Antique, Jio has become the biggest gainer, rising from 21.6% to 39.7%.
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