Tariff war-torn telecom sector may see recovery this fiscal

The Indian telecom industry, which has been grappling with declining revenues following a long and bitter tariff war triggered by fierce competition in the market, is likely to see signs of recovery in the current financial year (2019-20).

The forecast of green shoots appearing are hinged on expectations that marginal rise in tariffs, combined with higher data usage, will drive upwards the average revenue per user (ARPU) – seen as the only tool to boost the industry revenues, as subscriber growth is anticipated to remain muted.

In a recent report, agencies such as Edelweiss as well as Crisil have forecast that price recovery in the telecom sector could take place from the second half of the current financial year.