Tariff hikes plans are in step with operators’ purpose to extend ARPUs for the sake of sustainability, analysts say. The hike would almost definitely be gradual and end in higher companies, they add.

“Indian telecom sector wants to enhance its ARPU ranges from the present $2 per consumer to $4 per consumer. That is attainable solely by means of tariff hikes or with subscribers upgrading from 2G to 4G community. Since India is extra south than north by way of tariff, we will see some northward tariff correction as much as 20%,” says Prashant Singhal, chief, TMT-Rising Markets at EY.

“Tariffs, and subsequently ARPUs, have gone up with the final hike. Even now, we have now the most affordable telecom charges on the planet, that means there may be sufficient room from a worldwide perspective too. Therefore, one other hike of 20-25% within the subsequent 12 months is imminent,” says Peeyush Vaish, accomplice and telecom sector chief, Deloitte India.

The final tariff hike noticed ARPUs enhancing for all three telcos in the course of the December quarter on sequential foundation. Airtel reported its ARPU rising to ₹163 from ₹153 in September quarter. Vodafone Thought noticed its ARPU rise to ₹115 from ₹109 1 / 4 in the past. Reliance Jio registered an ARPU of ₹ 151.6, up from ₹143.6. Whereas the figures present a rising development, ARPU ranges stay beneath the extremely desired ₹200 mark.