As per the sources, there is a big news pending post the general elections in India.
It would not just be the result of who shall rule the country as a PM, but also it would bring forth an announcement that would not go that well with the general populace.
Anticipated 25% Hike in Mobile Phone Bills Post Elections
As per the telecom companies, there could be a significant 25% hike in the phone bills of mobile phone users as the companies gear up for the fourth round of tariff increases in recent years.
These companies expect to boost the average revenue per user (ARPU) post this hike.
As per a report by Axis Capital, “We expect a meaningful hike of around 25% by the operators in the near term on the back of a stable competitive environment, their need to improve profitability following heavy 5G investment, and continued government support.”
The report also highlighted that though the hike seems massive, but given the stickiness of data usage, it should be manageable for both urban and rural users.
Out of the total expenditure, the urban households shall see their telecom spending increase from 3.2% to 3.6% of their total expenditure. Whereas the rural ones can see the same increase from 5.2% to 5.9%.
The cited 25% increase in headline rates would lead to a 16% growth in ARPU for telecom operators, translating to Rs 29 for Bharti Airtel and Rs 26 for Jio, as per Axis Capital.
In the quarter that ended in March, Jio reported an ARPU of Rs 181.7, on the other hand Airtel and Vodafone Idea (Vi) reported Rs 208 and Rs 145, respectively, for the October-December 2023 period.
Strategies to Monetize 5G Investments: Insights from TMT Industry Leader
As per the TMT industry leader at Deloitte, South Asia, Peeyush Vaish, the operators will focus on monetizing their 5G capex investments by adjusting the prices of bundled packs.
He added that by the increase in 4G/5G bundled packs and phase out of some low-value packs, companies can expect a 10-15% increase in ARPUs to add around Rs 100 per subscriber by end of this calendar year.
Speaking on churn, he said that as long as people experience high-speed connectivity, the customers would remain loyal despite the hike.
Analysts predict that Bharti Airtel and Jio will be the primary beneficiaries of the wireless pack price increase.
