Analysts expect ‘muted’ June quarter for telcos amid lower subscriber additions

Analysts have predicted a “muted” June quarter for telecom companies due to slow smartphone sales amid lockdowns, free recharges given by telcos for low income users to help them stay connected during the pandemic and moderate subscriber additions.

In its note, J M Financial said while it expects “subdued activity” in the lower ARPU (Average Revenue Per User) category and consolidation of SIM — similar to 1QFY21 period — it remains cautious of a possible sequential decline in usage metrics. This, given that the “second Covid wave in India has impacted the professional/ middle income category, who drive the bulk of the data usage”.