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 ₹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 ₹146 for Vodafone Idea and ₹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.