Tariff hikes could help telcos see through 5G, infra spends

The average revenue per user (ARPU) in the Indian telecom sector needs to cross the Rs 300-mark according to industry estimates to justify the investments in new tech including 5G and telecom infrastructure to support the roll-out of services.

The March 2024 quarter ARPUs for the incumbent telecom operators varied between a low Rs 146 for Vodafone Idea and Rs 209 at the top end for Bharti Airtel. This means the current ARPUs are far from the required level and necessitate concerted efforts from telcos to improve return on investment.