• Home
  • Telecom
  • Telecom News
  • Airtel, Jio, Vodafone Idea Expected to Hike Tariffs in Second Half of 2022 for Revenue Growth: Report

Airtel, Jio, Vodafone Idea Expected to Hike Tariffs in Second Half of 2022 for Revenue Growth: Report

Airtel, Jio, Vodafone Idea reportedly witnessed a three percent rise in the number of active users by adding 2.90 crore subscribers to the tally.

Airtel, Jio, Vodafone Idea Expected to Hike Tariffs in Second Half of 2022 for Revenue Growth: Report

Photo Credit: Pexels/ Andrea Piacquadio

Reliance Jio saw its total subscriber base fall sharply between August 2021 and February 2022

Highlights
  • Share of Jio's active subscribers reached 94 percent in March 2022
  • The companies had started hiking tariffs from December 2019
  • Vodafone Idea lost 3 crore active subscribers during the period
Advertisement

The country's top three private telecom operators will resort to another round of tariff hike in the second half of the current fiscal and will close FY23 with a revenue growth of 20-25 percent, a report said on Tuesday.

A growth in average revenue per user is essential for the industry to invest in the network and spectrum, and if they do not do so, it can result in poor service offerings, domestic rating agency Crisil's research wing said in a report.

After years of intense competition following the entry of the deep-pocketed Reliance Jio, the industry had started hiking tariffs from December 2019.

"...revenue of the top three players is expected to grow a robust 20-25 percent this fiscal," the note said, adding that the operating profit margin will expand by 1.80-2.20 percent during the fiscal.

It said after a slow 5 percent growth in the ARPU (Average Revenue Per User) in FY22, the crucial number is set to grow by 15-20 percent in FY23 as the full impact of the hikes carried out in the previous fiscal plays out, and also on the back of the newer hikes which are expected in the second half of the current fiscal.

Since players are expected to spend incrementally on network and regulatory capex in FY23, ARPU growth and tariff hikes could ease some pressure on their books, it said.

In the fiscal gone by, there was a fall in the overall number of subscribers as 3.70 crore inactive users were weeded out, the report said, adding that the active subscribers rose during the year.

The three top telcos witnessed a 3 percent rise in the number of active users by adding 2.90 crore subscribers to the tally, it said.

Reliance Jio saw its total subscriber base fall sharply between August 2021 and February 2022. However, the share of its active subscribers reached 94 percent in March 2022, compared with 78 percent in the first quarter of last fiscal, it said, adding that Bharti Airtel added 1.10 crore active subscribers during the fiscal year to take its share of active users to 99 percent.

For Vodafone Idea, it was a "mixed bag" during FY23 as the company lost 3 crore active subscribers because of low capex in 4G and "deterioration of services", the rating agency said.


Why is 5G taking so long? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Airtel, Vodafone Idea, Jio, 4G
Samsung Galaxy S21 Series Starts Receiving the June 2022 Android Security Patch: Report
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »