Telecom sector revenue won’t grow beyond high-single digits in coming quarters: Analysts

KOLKATA: Telecom sector revenue won’t grow beyond high-single digits in the coming quarters without a tariff hike, though the presence of 207 million 2G users will continue to drive upgrades and support average revenue per user (ARPU) growth for India’s top two telcos in the medium term, say analysts.

However, they expect 5G capex spends to decelerate from FY25 onwards, which would pave the way for free cash flow (FCF) generation for the country’s private carriers after a 13-year gap, which would be a big catalyst for re-rating, going forward.