Telecom industry headed for strong growth: Ind-Ra

Kolkata: India Ratings & Research (Ind-Ra) said the telecoms industry is headed towards a higher ARPU regime and strong subscriber growth amid clear turnaround signals over the past four to five quarters that is likely to drive revenue growth for the top private carriers, particularly Bharti Airtel and Reliance Jio.

The rating company said the sector turnaround is being driven by a mix of “moderation in competition intensity between the big telcos, resulting in waning tariff differentials, increasing data penetration, supporting growth in average revenue per user (ARPU), and a growing subscriber base”.

A combination of these factors, it said, is resulting in an “overall improvement in operational and financial parameters of telecom companies”.