Stories
Telecom Tariffs May Jump 12-15% Amid Market Consolidation
- •India's telecom sector could see a 12-15% tariff increase over the next four to five months due to a favorable 3+1 market structure.
- •Average revenue per user across Reliance Jio, Bharti Airtel and Vodafone Idea Limited is projected to increase by 0.8-2.0% quarter-on-quarter in Q2FY27.
- •Reliance Jio and Bharti Airtel are expected to continue gaining subscriber market share at the expense of Vodafone Idea Limited.
- •Robust 4G and 5G network expansion, user migration from 2G, and rising data consumption remain key drivers for the sector.
Key Questions Answered
According to a Centrum Institutional Research report, India's telecom sector could experience a 12-15% tariff increase over the next four to five months as the industry's 3+1 market structure creates a more favorable pricing environment.
Average revenue per user (ARPU) is expected to increase by 0.8-2.0% quarter-on-quarter in Q2FY27. Reliance Jio's ARPU is projected to rise 1% to ₹218 per month, Bharti Airtel's is expected to rise 2% to ₹269 per month, and Vodafone Idea's blended ARPU is anticipated to increase by about 0.8% to ₹178 per month.
Subscriber additions are expected to remain positive overall, with Reliance Jio and Bharti Airtel continuing to gain subscriber market share at the expense of Vodafone Idea. Jio is projected to add 8 million subscribers to reach 541 million, Airtel to add 3 million for a base of 380 million, and Vodafone Idea to add 1 million to reach 194 million.
