STOCK MARKET BSE NSE

Jio, Airtel unlikely to hike tariffs as stiff competition builds up

The agency pointed out that there is a close contest between the top two telcos, when one goes by active subscriber base with Jio’s share at 33.7 per cent and Airtel’s at 33.6 per cent.

Published: 28th April 2021 10:35 AM  |   Last Updated: 28th April 2021 10:35 AM   |  A+A-

Bharti Airtel

Bharti Airtel. (File Photo| Reuters)

By Express News Service

NEW DELHI:  Two major telecom companies Bharti Airtel and Reliance Jio are neck and neck in terms of active mobile subscriptions, and hence the industry is unlikely to see any unanimous tariff hikes in 2021-22, according to a Crisil Ratings report.

The agency pointed out that there is a close contest between the top two telcos, when one goes by active subscriber base with Jio’s share at 33.7 per cent and Airtel’s at 33.6 per cent. “The active subscriber market share data indicates the top two players are neck and neck, with neither ready to bite the bullet and raise tariffs,” it said.

The build-up in competitive intensity also indicates that the industry is unlikely to see unanimous tariff hikes at least in the near term, limiting a large upside in average revenue per user (ARPU) in fiscal year 2022. However, a price war like the one seen before 2019 is unlikely and competition will be indirect in the form of tie-ups with smartphone manufactures low-cost phones, increased bundling of OTT content, etc.

The report said there is an universe of 250-300 million active non-4G subscriber base, which will be on the radar of the telcos for conversion to 4G users in order to increase revenues. 4G mobile data subscribers to rise to 820 million by the end of March 2022 higher than in the last fiscal.

“The pandemic slowed 4G subscriber additions to 12 million in the June 2020 quarter, with smartphone shipments probing new lows. However, the March 2021 quarter would have been better because India’s 4G subscriber base is expected to have risen to 710-720 million in fiscal 2021”, the agency noted.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp