Sequential ARPU growth likely to continue for telecom cos: Mahantesh Sabarad

Sequential ARPU growth trend will continue for the telecom industry. It may appear to have been broken just for one quarter but that trend will sustain thereafter, says Mahantesh Sabarad, Head – Retail Research, SBI Cap Securities.

The Bharti Airtel management has indicated that there is only one way for business sustainability and that is for tariffs to move up. But they have also said that they are waiting for the competitor to take lead. What could be the next trigger forward for Reliance?
We have argued in the past that Reliance’s future is now linked to how the telecom vertical performs and we have seen that for the industry as a whole there has always been a sequential growth, quarter on quarter in the ARPUs. This has been seen for the last three-four quarters and that trend will continue as far as I see it.