Indian telecom companies eye 5G services rollout with better profits

Telecom is a capital-intensive sector requiring continuous technological upgradation

Indian telecom companies (telcos) are set to see a 40 per cent boost in their operating profits next fiscal, which will give them some room to invest in rolling out their 5G services. Operating profit is expected to surge to Rs 1 trillion from Rs 72,000 crore in the next fiscal, on the back of higher tariffs, better ARPU, and the government’s deferred payment option. 

The recent 20-25 per cent tariff hikes announced by telcos and ongoing customer upgrades, led by continuous rise in data consumption will improve average revenue per user/month (ARPU) by 20 per cent to Rs 160-165