Telecom tariff hikes to be gradual, may lead to 8-8.5% ARPU growth: Report

UBS India projects a more gradual pace for telecom tariff increases over the next three years, anticipating average revenue per user (ARPU) to grow at a compound annual rate of 8 to 8.5 per cent. This forecast by Navin Killa, Head of Asia Pacific Telecommunications, Media and Internet at UBS India, marks a slowdown from the 12 to 13 per cent growth rate observed in the sector over the past five years, according to a report by CNBC-TV18.

The revised outlook stems from an expectation of a more competitive market, particularly with a better-funded Vodafone Idea. Killa noted that this competitive environment is a key factor driving the view that future price increases will be less aggressive than those seen in recent years.