New Delhi: India's telecom sector is bracing for another 12-15% tariff hike within the next three to four months, as market consolidation has created a more favourable pricing environment, according to a Q1FY27 preview report by Centrum Institutional Research.
The brokerage noted that with only "3+1 players" dominating the market, operators are expected to push tariffs higher. Average Revenue Per User (ARPU) is projected to rise 1-1.5% quarter-on-quarter in the June quarter, driven by subscriber migration from 2G to 4G and 5G, growth in postpaid customers, and a longer billing cycle.
Centrum expects Reliance Jio and Bharti Airtel to continue gaining market share at the expense of Vodafone Idea (VIL). Jio is likely to add around 7 million subscribers, Airtel 5 million, while VIL may add just 0.2 million.
Data usage per customer is expected to remain robust as 4G and 5G penetration deepens, with Jio and Airtel already covering over 90% of districts with 5G services.
The report also highlighted strong traction in fixed broadband and 5G FWA services, while noting that VIL has expanded its 5G footprint to 100 cities and reduced its adjusted gross revenue (AGR) dues to Rs 25,000 crore.