Telcos may log modest revenue growth in Q2 on subscriber upgrades

Telecom operators are expected to post revenue growth of 0.8%-2.4% sequentially in the September quarter, backed by ongoing upgrades-led improved subscriber mix and an additional working day in the quarter.

Average revenue per user (ARPU), a key performance metric, is forecast to rise 1.1-1.6% sequentially following the discontinuation of entry-level subscriber plans by telcos during the quarter, said analysts. Reliance Jio is expected to record robust subscriber additions, at around 7 million, including fixed broadband and fixed wireless access (FWA) services, though it would be lower for Bharti Airtel-at a net addition of around 2 million, despite mobile broadband subscriber gains of 7.2 million.