To improve ARPU, telcos to hike tariffs more frequently in FY23: Report

The telecom sector in India is expected to see more tariff hikes in the coming quarters. The upcoming quarter, starting January, may see at least one rate hike, a report in Economic Times (ET) said.

The report quoted an expert as saying that the tariff hikes will raise average revenue per user (ARPU). Reliance Jio is most likely to lead the hikes as it is now focussing on profitability. In the next couple of years, the company is aiming to launch an initial public offer (IPO), ET reported, This would increase the need to have more money.

5G services also need high capital expenditure. With almost all major telcos eyeing to launch 5G soon, the requirement for funds is high.