Tariff hikes by telcos set to ring in revenue growth in FY22: ICRA

Telecom service providers (telcos) are expected to dial in next round of tariff hikes over the next one or two quarters which is likely to drive revenue growth in new financial year (2021-22) beginning April 1, according to investment information firm ICRA.

Tariff hikes and upgradation of subscribers from 2G to 4G is expected to result in improvement in average revenue per user to around Rs 220 in the medium term which will lead to growth in industry revenue by 11 to 13 per cent over the next two years with operating margins expanding to nearly 38 per cent for FY22.