NEW DELHI: Telecom service providers are expected to report a 5-6.5% quarter-on-quarter (QoQ) increase in average revenue per user (ARPU) in their Q3FY25 results, according to a report by Centrum. The report suggests that the impact of SIM consolidation, which followed the tariff hike, is expected to subside by the third quarter of FY25.
“The three telecom operators are expected to report a 5-6.5% QoQ increase in ARPU, led by the July 2024 tariff hike,” the report states. The tariff hike reflects a shift in focus towards enhancing ARPU to improve the overall return on capital employed (ROCE).
Rising digital penetration and widespread adoption of 4G services are expected to support performance of internet-based companies. Among the top players, Jio is anticipated to lose around 2 million subscribers QoQ, while Bharti Airtel is expected to gain nearly 3 million subscribers over the same period. Vodafone Idea (VIL) is projected to lose nearly 4 million customers QoQ, highlighting its continued struggle to retain its subscriber base.
As per the report, both Jio and Airtel have been aggressively expanding their 5G networks across India. Any updates on their progress in 5G implementation will be monitored by investors. Investors and industry experts will be keenly watching Q3 results, mainly to gauge impact of tariff hike, users dynamics, and updates on 5G expansion plans.