In the aftermath of the General election, mobile phone users may witness a huge 25 percent hike in their bills in the coming months. As Telecom operators are now getting ready for the fourth round of tariff increases.
This step is expected boost ARPU (Average Revenue Per User) for these companies.
As per Axis Capital’s report, it asserts that it expects a meaningful hike of around 25% in the near term on the back of stable competitive environment, need for profit improvement considering their heavy investment in 5G and persistent government support.
However, the report also says, that even though the hike may seem huge, but it will be manageable for both urban and rural users, given their data usage.
As both urban and rural area will witness increase in telecom spending by 3.6% and 5.9% respectively.
According to TMT industry leader Peeyush Vaish, the operators will most likely monetize their 5G capex investment by adjusting the prices of their bundled packs. However, the TMT Deloitte leader also noted, the consumers will still remain loyal to their operators, as long as they experience a good internet connection.
But the analysts also predict that Bharti Airtel and Jio might come out as a prime beneficiary of this wireless pack increase.
