High inflation bites into telecom revenue growth

High inflation is having an impact on the usage of mobile phone services, which is set to restrict the sequential revenue growth of telcos in the April-June quarter to 2-4%, the slowest in the last nine months.

This is because the rise in smartphone prices, coupled with the increased cost of mobile services after last winter’s tariff hikes, is slowing down 4G user additions and forcing subscribers to use less data, say analysts.