According to a report by CRISIL, India’s overall mobile user base will see an increase in postpaid users by 400 basis points (bps) to 12 per cent in FY24 in contrast to the current 8 per cent. This will be due to India’s top telecom companies’ recent schemes with unlimited 5G data offers and variety of over-the-top (OTT) content.
The newer schemes and tariffs , with a closing gap in postpaid and prepaid monthly average revenue per user (ARPU) would be the key reasons behind this growth, as stated in the report. The difference in postpaid and prepaid ARPUs is expected to narrow further down to 1.1-1.12 times in FY24, compared to the 1.4-1.5 right now. The telcos will benefit with the increase in the share of postpaid subscribers as it would contribute to higher ARPUs than prepaid.
