According to Antique Stock Broking report, the telecom industry is expected to undertake a 15-17 per cent tariff hike post general elections.
The report describes tariff hike as imminent and Bharti Airtel as the biggest beneficiary. Bharti Airtel’s current ARPU of Rs 208 is set to go up to Rs 286 by end of financial year 2027 (FY27).
This will be driven by a tariff hike contributing Rs 55, upgradation of 2G customers to 4G contributing Rs 10, and customer upgradation to a higher data plan (both 4G and 5G) and moving to postpaid delivering Rs 14 gain.
The report expects Airtel to ride its best financial performance phase in over a decade driven by tariff hike, 2G upgradation, strong growth of enterprise and fibre- to-the-home, and a fall in capital expenditure (CAPEX) post the 5G rollout, over next three years.
The report also mentions that Airtel has guided for a CAPEX of about Rs 750 billion over FY24- 26, including 5G rollout. Post the rollout, the capex intensity is likely to fall significantly.
