Tariff hikes to raise ARPU by 15 pc, help expand operating profits for telcos: Report

Mumbai: Tariff hikes by the top three telcos will help increase the average revenue per user by 15 per cent, and expand the operating profit by over 20 per cent in FY25, a domestic rating agency said on Monday. The 20 per cent hikes by the telcos after a two and half year hiatus can expand telcos’ profit before interest lease depreciation and tax (PBILDT) by 20-22 per cent in FY25, Care Ratings said in a report.

It termed the same as a “structural positive” for the telecom sector struggling on the Return on Capital Employed (ROCE) front because of the huge investments in 5G rollout, including spectrum purchases, it said.