India’s telecom sector is entering a multi-year growth and recovery phase with ARPU CAGR expected to grow to 7% during FY26-29E, which will likely reduce India’s tariff gap, as per a report by Elara Capital. <\/p>\n
Noting that the industry consolidation is largely complete and tariffs are still among the lowest globally”, the report noted, “The sector is well-positioned for stronger cash flows, faster deleveraging, earnings upgrades, and improved returns.” <\/p>\n
India’s telecom sector is in a multi-year recovery, driven by ARPU improvement, structural data demand, and lower incremental capex. This creates a favorable backdrop for earnings upgrade, deleveraging and higher free cash flow conversion. <\/p>\n
According to the report, India’s telecom sector is driving a data consumption boom supported by affordable tariffs, widespread smartphone adoption, and expanding network coverage across rural India. <\/p>\n
“We model an ARPU CAGR of 7% during FY26-29E, which should reduce India’s tariff gap with global markets and restore attractive returns on invested capital,” it said. <\/p>\n
According to the report, India’s per-user monthly data consumption increased from ~15x to ~21GB during CY16-24. According to Elara, the next phase of data growth will be more sustained, fueled by higher digital engagement, the adoption of data-intensive applications such as video, cloud gaming, enterprise SaaS, and IoT, and deeper digital integration across consumer and business segments. <\/p>\n
“We see a credible path for per-subscriber use to exceed 65GB per subscriber in the next decade from ~21GB in CY24,” it said. <\/p>\n
According to Elara, the telecom sector is well-positioned to raise ARPU, which is projected to grow at a 7 per cent CAGR between FY26 and FY29. “We expect ARPU CAGR to accelerate to 7% during FY26-29E,” the report said. <\/p>\n
This shift is expected to be supported by tariff hikes, abundant bundled service offerings, elevated data use being a staple behavior and disciplined pricing. <\/p>\n
“We expect blended ARPU to increase to 6 per cent in FY27E, 8 per cent in FY28E, and 6 per cent in FY29E, driven by tariff resets and higher average consumption,” the report added.<\/p>\n","protected":false},"excerpt":{"rendered":"
India’s telecom sector is entering a multi-year growth and recovery phase with ARPU CAGR expected to grow to 7% during FY26-29E, which will likely reduce India’s tariff gap, as per a report by Elara Capital. Noting that the industry consolidation is largely complete and tariffs are still among the lowest globally”, the report noted, “The sector is well-positioned for stronger cash flows, faster deleveraging, earnings upgrades, and improved returns.” India’s telecom sector is in a multi-year recovery, driven by ARPU improvement, structural data demand, and lower incremental capex. This creates a favorable backdrop for earnings upgrade, deleveraging and higher free […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1014958","post","type-post","status-publish","format-standard","hentry","category-telecom"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1014958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=1014958"}],"version-history":[{"count":1,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1014958\/revisions"}],"predecessor-version":[{"id":1014959,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1014958\/revisions\/1014959"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=1014958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=1014958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=1014958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}