Indian telecom industry to bounce back with 7% revenue growth in 2020 fiscal: CRISIL Research

NEW DELHI: The Indian telecom industry is likely to reverse a two-year declining trend with a 7% revenue growth in 2020 fiscal owing to an expected increase in average revenue per user (ARPU) by 11%, ratings and research company CRISIL stated on Tuesday.

ARPU levels will get an upward push from higher data usage and introduction of minimum recharge plans. However, CRISIL predicted that the overall subscriber base is likely to shrink by 4% and any price-led aggression could impact all telcos adversely.

According to CRISIL, telcos may witness an increase in profitability with the earnings before interest, taxes, depreciation and amortisation (EBITDA) margins improving by approximately 350 basis points on-year to 31% in fiscal 2020.