According to a report by Centrum, while all private telecom operators experienced subscriber losses this quarter, they saw significant growth in average revenue per user (ARPU) due to recent tariff hikes.
The ARPU for the wireless segment of private operators increased following the tariff revisions in July 2024. Bharti Airtel maintained its lead with an ARPU of Rs 233 per month, up from Rs 211 per month in the first quarter (Q1) of the financial year 2024-25 (FY25). Reliance Jio Limited reported an ARPU of Rs 195 per month, compared to Rs 182 in Q1 FY25, while Vodafone Idea Limited (Vi) achieved an ARPU of Rs 156 per month, up from Rs 146 in Q1 FY25.
The report noted that the full impact of these tariff hikes will become evident in the coming quarters. However, subscriber losses were attributed to SIM consolidation, a result of the July 2024 tariff hikes. Airtel lost 2.9 million subscribers’ quarter-on-quarter, reducing its base to 352 million. Reliance Jio saw a decline of 10.9 million subscribers, bringing its total to 479 million, while Vi lost 5.1 million subscribers, largely from the 2G segment, leaving it with 205 million subscribers. Additionally, the quarter witnessed increased subscriber porting to state-owned Bharat Sanchar Nigam Limited (BSNL), which did not raise tariffs.
Further, the report estimated that SIM consolidation could be largely completed by the end of the third fiscal quarter. Beyond tariff hikes, ARPU growth is anticipated to continue due to the migration of subscribers from 2G to 4G and an increase in post-paid users. This transition is also expected to drive higher average voice and data consumption.
Both Airtel and Jio are expanding their 5G networks across India, with Jio seeing 148 million subscribers migrate to 5G and Airtel reporting 105 million 5G users. The rise in 5G adoption is expected to drive data consumption, boosting revenue and ARPU for telecom operators.
The report also stated that the tariff adjustments in December 2019, November 2021, and July 2024, along with the September 2021 reforms, have contributed to a stabilising telecom sector.
