ARPU VS USERS: TELCOS' CALL
Business Standard|December 05, 2024
Telecom tariff hikes, rolled out in July after 30 months of logjam, are playing out in surprising ways
- SUBHAYAN CHAKRABORTY
ARPU VS USERS: TELCOS' CALL

If monthly Arpu (average revenue per user) is like a currency to evaluate the health of a telecom operator, subscriber numbers are its mainstay. Recent developments establish that the two most critical metrics in the telecom universe - Arpu and subscriber numbers - are two sides of the same coin, with tariff being the proverbial X factor.

After 30 months of holding on to the same tariff levels, fearing that any hike would trigger loss of customers, companies decided to bite the bullet in July this year and raised prices across the board.

The subscriber churn has not stopped ever since. In fact, India's telecom market has thrown up more surprising numbers than anyone was willing to predict.

Not surprisingly, the industry is not rushing into a debate around the quality of subscribers, the difference between pre-paid and post-paid customers, and the cost of acquisition of users at this point. The next round of tariff hike, though necessary to inch closer to the international levels, can wait.

A senior executive at a leading telco told Business Standard recently that his company would not risk losing more customers by raising tariffs. For good reason.

Subscriber churn

Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) have cumulatively lost 23.07 million subscribers in the second quarter (July-September) of FY25. Meanwhile, public sector telecom operator Bharat Sanchar Nigam Ltd (BSNL) saw its fortunes rise with 6.3 million new mobile customers.

Breaking a record logjam of two and a half years, all three private sector telcos raised tariffs. Bharti Airtel and Vi announced a hike in mobile tariffs by up to 21 per cent, while Jio raised them by 12-25 per cent. BSNL stayed away from any tariff hike.

この蚘事は Business Standard の December 05, 2024 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Business Standard の December 05, 2024 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

BUSINESS STANDARDのその他の蚘事すべお衚瀺
IndiGo plane lands at Noida Airport in first flight validation test
Business Standard

IndiGo plane lands at Noida Airport in first flight validation test

The upcoming Noida International Airport (NIA) at Jewar in Gautam Buddha Nagar on Monday announced the \"successful\" completion of its validation flight, a crucial step in the process of acquiring aerodrome licence.

time-read
1 min  |
December 10, 2024
Indians lead Global South in adapting to AI, tech revolution
Business Standard

Indians lead Global South in adapting to AI, tech revolution

GLMC study reveals that over 70% Indians actively seek opportunities to upskill

time-read
2 分  |
December 10, 2024
A-I places order with Airbus for 100 aircraft
Business Standard

A-I places order with Airbus for 100 aircraft

Tata-run Air India Group on Monday stated that it has placed an order for 100 planes—90 narrowbody A320 family aircraft and 10 widebody A350 aircraft—with European aircraft manufacturer Airbus.

time-read
2 分  |
December 10, 2024
CRACKING THE WHIP
Business Standard

CRACKING THE WHIP

Why Sebi is tightening the regulations for public issues of SMEs

time-read
5 分  |
December 10, 2024
Business Standard

Algo-driven approach eliminates human bias, risk of style drift

SBI Mutual Fund recently launched the SBI Quant Fund. Its new fund offer (NFO) opened on December 4 and will close on December 18.

time-read
2 分  |
December 10, 2024
GCPL stock slips 9% on weak growth guidance
Business Standard

GCPL stock slips 9% on weak growth guidance

Shares of most other FMCG firms end with losses of up to 4.1%

time-read
2 分  |
December 10, 2024
Tata Power consistently meets guidance, inspires confidence
Business Standard

Tata Power consistently meets guidance, inspires confidence

On its Investor Day on December 6, Tata Power clarified its five-year strategy.

time-read
3 分  |
December 10, 2024
SMALLCAP INDEX HITS A NEW HIGH
Business Standard

SMALLCAP INDEX HITS A NEW HIGH

The Nifty Smallcap 100 on Monday closed at a new record high of 19,529 after gaining for 12 continuous sessions, the longest gaining streak since April.

time-read
1 min  |
December 10, 2024
Raamdeo Agrawal's pursuit of 'bruised blue-chips'
Business Standard

Raamdeo Agrawal's pursuit of 'bruised blue-chips'

Investing in beaten-down high-ROE stocks can be rewarding, says the veteran investor

time-read
3 分  |
December 10, 2024
Paytm shares surge threefold after non-core biz divestment
Business Standard

Paytm shares surge threefold after non-core biz divestment

Shares of One97 Communications, the company that operates the Paytm brand, has regained lost ground, tripling from its previous low of ₹317 per share on May 8, 2024.

time-read
2 分  |
December 10, 2024