Telecom competition takes a breather, may recharge Vodafone Idea

Vodafone Idea’s financial health is set to get a much-needed boost from latest tariff increases and easing competitive intensity with analysts predicting the debt-laden telecom operator’s average revenue per user (ARPU) to rise to Rs 171-180 by this fiscal-end, from Rs 143 in April.

Brokerage Citi Research projected rising revenues, operating income, capex, and narrowing losses for the telecom joint venture between India’s Aditya Birla Group and UK’s Vodafone Plc. “The peak of competitive intensity is now likely behind us, evidenced not just by the latest tariff action but also the recent spectrum auction,” Citi said in a report.