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Telecom companies will increase tariff: Now it will not be easy to use internet on phone. Mobile telecom services will become more expensive. Telecom companies will increase tariffs several times in the next 12 months. On July 3 this year, tariffs have increased by 25 percent. After this, there is panic among the people. People are busy porting their numbers.
According to CareEdge Ratings, the 25% hike in tariffs this month will increase the average revenue per user (RPU) of telecom companies Jio, Airtel and Vodafone-Idea by 15% from ₹182 to ₹220. The companies are gearing up to take the RPU above ₹300. Bharti Enterprises Chairman Sunil Bharti Mittal says that India will remain the cheapest telecom market in the world even if the revenue per user reaches Rs 300.
Data consumption has increased 4 times in the last 10 years
Internet penetration in the country was only 13.5% in 2014, which will quadruple to 52.2% by 2024. The revenue of the telecom industry has increased by Rs 1 lakh crore between 2018-19 and 2022-23. Tariffs were reduced after the launch of 4G services in 2016. After this, internet penetration in the country increased rapidly. The demand for features has also increased.
Now 5G services have started. As technology progresses, data usage also increases. Companies are trying to take advantage of this trend. The total revenue of the telecom industry reached Rs 2.4 lakh crore in the financial year 2023-24. Meanwhile, the number of telecom companies has decreased from 22 to 5 in the last 10 years.
Tariffs could rise 36% in 7 years: Bank of America
Bank of America believes telecom RPU in India will grow 13.6% to ₹250 in the next 5 years and 36.4% to ₹300 in 7 years. Citi Research estimates that Airtel will be the biggest tariff hiker in the coming years. It could reach ₹270 by 2025-26 and ₹305 by 2027.
According to rating agencies, telecom companies are working on a roadmap to increase revenue per user to ₹ 80 in the next few years. CareEdge Ratings said, “As per our analysis, every Rs 1 increase in RPU adds Rs 1,000 crore to the telecom industry’s profits.
According to Manish Sinha, Member (Finance) of the Department of Telecommunications, the average revenue per user of telecom companies was Rs 100 in 2018-19. It increased to Rs 182 in the financial year 2023-24. Of this, 86% was from 4G and about 14% was from 5G.
Telecom expert Mahesh Uppal said that in May this year, Jio has gained 35 lakh customers and Airtel has gained 9 lakh customers. In contrast to these two companies, Vodafone-Idea's customer base has decreased by 17 lakh in a month.