A rational call

Tariff revision can enable telcos to spend on infrastructure

The commentary after the recent Reliance Industries quarterly earnings has brought the focus back on the need for rationalising telecom tariffs in India. The immediate trigger is the rising customer base of Reliance Jio but flat monthly average revenue per user (Arpu). The company reported an Arpu of Rs 181.70 in the third quarter, the same as in the previous quarter, and slightly up from the Rs 178.20 in the same quarter last year. In the telecom industry, Arpu is like a currency that captures the health of a telco. Multiple analysts’ reports have rightly pointed out that telcos must