Telcos need to boost ARPUs by 25%, may have to hike tariffs again to be sustainable: Crisil
By
Biju Kumar
Telcos need to boost their average revenue per user (ARPU) by at least 25 per cent in the next year to be sustainable, which would result in another round of tariff hikes, domestic rating agency Crisil said on Wednesday.
It said the returns on capital employed are “abysmally low” for telcos at present and also considering the Supreme Court ruling on Adjusted Gross Revenue (AGR), which has created huge liabilities.