Telcos weigh next round of tariff hike after Arpu boost

Telcos are likely to raise tariffs in the next two to three quarters, analysts believe, as they focus on value over volume growth. At the same time, given how companies have consolidated customer churn, they will want to limit SG&A (sales and marketing) costs to maintain margins, they added.

The entry level changes made by Jio and Airtel could be one way to raise tariffs as telcos wait for the right time to effect more structured hikes across packs.