The country’s three major private telecom operators will resort to another round of price hikes in the second half of the current fiscal year and will end fiscal year 23 with revenue growth of 20-25%, according to a report. report released on Tuesday.
Growth in average revenue per user is essential for the industry to invest in network and spectrum, and failure to do so can lead to poor service offerings, the agency’s research wing said. national rating Crisil in a report.
After years of intense competition following the entry of deep-pocketed Reliance Jio, the industry had started raising tariffs from December 2019.
“…revenues for the top three players are expected to increase 20-25% this fiscal year,” the note said, adding that operating profit margin will increase 1.80-2.20% in the year. ‘exercise.
He said that after a slow growth of 5% in ARPU (average revenue per user) in FY22, the crucial number is expected to grow by 15-20% in FY23 as the full impact of the increases made in the previous fiscal year occurs, and also on the back of further increases that are expected in the second half of the current fiscal year.
Since players are expected to spend incrementally on network and regulatory investments in FY23, ARPU growth and rate hikes could ease pressure on their books, he said.
In the past financial year, the total number of subscribers dropped, with 3.70 crores of inactive users eliminated, the report said, adding that the number of active subscribers increased over the year.
The three major telecom operators saw a 3% increase in the number of active users by adding 2.90 crore subscribers to the tally, he said.
Reliance Jio saw its total subscriber base drop between August 2021 and February 2022. However, the share of its active subscribers reached 94% in March 2022, compared to 78% in the first quarter of the previous fiscal year, it said. he said, adding that Bharti Airtel added 1.10 crore active subscribers during the financial year to take its share of active users to 99%.
For Vodafone Idea, it was a “mixed bag” in FY23 as the company lost 3 crore active subscribers due to low 4G capex and “deterioration of services”, a said the rating agency.