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ARPU key to telcos' sustainability, should rise by 13-30% annually: Icra

The industry ARPU will have to rise to Rs 200 in the medium-term for viable operations, and so further tariff hikes cannot be ruled out, Icra said

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Consistent increase in data usage and steady upgradation of customers to 4G will also drive the ARPU growth going forward, the release said.

Press Trust of India New Delhi
Long-term sustainability requirements demand that telcos will have to raise their average revenue per user (ARPU) by 13-30 per cent annually, Icra said on Friday.

The industry ARPU will have to rise to Rs 200 in the medium-term for viable operations, and so further tariff hikes cannot be ruled out, Icra said.

Uncertainties around the adjusted gross revenue (AGR) issue persists, despite green shoots of recovery in form of steady ARPU improvement backed by tariff hikes of December 2019, along with the deleveraging moves undertaken by telcos and moderation of Capex intensity.

"If (the) SC (Supreme Court) allows a 20-year