Top Private Telecom Operators to Hike Tariffs in Second Quarter

The country's top three private carriers are expected to rely on another rate hike in the second half of the year to achieve a 23% increase in revenue by 2025, according to a report on Tuesday.

The increasing average revenue per user is essential for the industry to invest in networks and spectrum, otherwise service delivery may be inadequate, according to domestic rating agency Crisil's research. After years of fierce competition following the entry of the deep-pocketed Reliance Jio, the industry began raising tariffs in December 2019.

Last year, 3.70 crore inactive users were eliminated, reducing total subscribers and increasing active subscribers over the year, the report said. The top three telecoms witnessed a 3% rise in the number of active users by adding 2.90 crore subscribers to the tally.

From August 2021 to February 2022, Reliance Jio's total number of subscribers dropped sharply. However, the active subscriber share reached 94% in March 2022, which was 78% in the first quarter of last year, but with the addition of Bharti Airtel, 1.10 crore people during the fiscal year increased the share of active users to 99%.