At 10-20%, telecom tariff hikes in 2022 expected to be lower than in 2021

Owing to inflationary pressures, tariff hikes by telecom operators in 2022 are likely to be lower than in 2021, according to a report in the Financial Express (FE). This comes at a time when nearly all telcos in India are aiming to launch 5G services before the end of 2022.

In November 2021, the companies announced tariff hikes of 20-25 per cent. In 2022, according to FE, the hikes may lie between 10-20 per cent. Also, the hikes may get slightly delayed.

“We expect the next leg of tariff hikes in the next 6-12 months. A delay in tariff hikes by the telecom companies is expected largely due to weak consumer sentiment on inflationary pressures,” Nitin Soni, senior director at Fitch Ratings told FE. The agency maintained a stable outlook on the Indian telecom sector.