Airtel ARPU to rise 14% CAGR over 3 years driven by high value users, tariff hike, 2G migration: Report

NEW DELHI: Bharti Airtel’s wireless ARPU is well poised to rise driven by acquisition of high value subscribers, 2G to 4G subscriber migration and potential tariff hikes during FY22e, HSBC Global Research said in a note.

The Sunil Mittal-led telco’s 4G subscriber penetration is likely to surge to 80% by FY23e, which would support ARPU increases. It’s ARPU is set to rise at 14% CAGR over three years.

“Thus, we expect Bharti Airtel’s consolidated revenue and EBITDA to expand at 12% and 15% CAGRs, respectively, over FY20-23e,” the brokerage said.