Airtel expects 4G migration to fuel ARPU growth from Q3

Bharti Airtel is looking at a one-and-a-half to two-time increase in average revenue per user (ARPU) from the December quarter, pushed primarily by its feature-phone customers going 4G, amid a restricted seemingly impression from the newly launched JioPhone Next of the Reliance-Google mix, analysts mentioned.

Analysts, although, anticipate the Sunil Mittal-led telco to tug the plug on its month-to-month bulk information plans in absence of any significant market traction. This is since Airtel’s plans providing day by day information allowances – not like the premium bulk information packs – work out cheaper for shoppers.

“From Q3, Bharti Airtel’s management expects ARPU growth trajectory in near term to be driven by 2G-to-4G upgrades as the July 2021 tariff increase has largely flowed through in the 2Q results,” IIFL Securities mentioned.

Airtel reported virtually 5% sequential development in ARPU to ₹153 within the July-September interval, on the again of segmented tariff hikes taken in July in its base pay as you go voice and post-paid company person segments.

IIFL expects ARPU development alternatives for Airtel to come back initially by way of 2G-to-4G person conversions, adopted by the telco’s 4G pay as you go subscribers going post-paid, with every segmented improve able to doubtlessly leading to 1.5x-2x ARPU jumps. TGI