Tariff hike in telecom 'inevitable', two rounds likely in 12-18 months: EY

The industry is talking of ARPUs going up anywhere from 60 per cent to 80 per cent over next two-three years, and that can happen by way of tariff increase

Tariff hike in the telecom sector is "inevitable" as the current structure does not allow reasonable returns for operators, although a lot would depend on the timing given the "unprecedented" scale of the Covid-19 pandemic and resultant affordability crisis, according to EY.

Acknowledging that an immediate tariff increase may not be feasible in the current setting, Prashant Singhal, emerging markets Technology, Media & Entertainment and Telecommunications (TMT) Leader at EY said two rounds of tariff hikes can be expected in the next 12-18 months, including one in the next six months.

"Tariff hike is necessary. Telecom as spend for consumers is fairly