Telcos need to up tariffs after spectrum buys: CareEdge

Mumbai: Telcos will need to push for tariff hikes and retain market shares to ensure sector health, in light of the purchases made in the recently concluded 5G spectrum auctions, said CareEdge Outlook.

The last tariff revisions happened in late calendar 2021 and it has seen steady acceptance with all three telcos reporting consistent average revenue per user (ARPU) growth despite declining subscriber base in some quarters. This, the report added, indicated industry preparedness for consecutive tariff hikes.

“The TSPs may thus be prompted to revisit the tariff plan in the next 9-12 months, which could further aid the improvement of their ARPU levels by around 25%,” according to the CareEdge Outlook.