Led by data, telecom players' Arpu to grow even without tariff hike: Report

The sliding voice tariffs, growing data tariffs indicate that the average revenue per user of the industry could grow even without tariff hikes, says India Ratings

The average revenue per user (ARPU) of the cellular industry could grow even without tariffs hikes as data usage and penetration zooms over the last 1-2 years.

As per India Ratings and Research (Ind-Ra): "The sliding voice tariffs, growing data tariffs, increasing data usage per subscriber and increasing data subscribers in the overall subscriber base over the last one year indicate that the average revenue per user of the industry could grow even without tariff hikes."

Besides, the ratings agency, cited that industry-wide subscriber base increased by 4 million subscribers on a month-on-month (MoM) basis in June 2021 to 1,181 million subscribers, as against a sharp decline of 6.3 million subscribers in May 2021.

"Broadband subscriber base also grew in June 2021 by 11.7 million subscribers to 769 million subscribers."

However, the visitor location register subscriber base, which shows active subscribers, reported a dip by 1.3 million subscribers mom in June 2021 to 985 million subscribers, the agency said.

In terms of broadband subscribers, it cited official data which showed an increase of 65.1 per cent of the overall wireless subscriber base in June 2021 from 64.4 per cent in May 2021 and 47 per cent in March 2019.

"In June 2021, the number of broadband subscribers increased by strong 11.7 million, the broadband penetration as percentage of overall subscriber base continued."

Additionally, the average data used per user also increasing rapidly, it said.