Analysts see low probability of tariff hikes this fiscal

Jio, Airtel and Vi are not expected to hike tariffs this fiscal, say analysts.

India Ratings
“Ind-Ra does not foresee broad-based tariff hikes materialising in the near to medium term, given the heightened competition amid telcos recent attempts to acquire high-average revenue per user (ARPU) customers and aggressive 5G roll out plans.”

Motilal Oswal
“We see low probability of tariff hikes in the near term, and at the same time, increased competition for market share could result in greater churn for telcos.”

Analysts had earlier factored a prepaid tariff hike around mid-calendar in 2023 as a push to increase average revenue per user (ARPU) and to begin 5G monetisation. They had also said that telcos would likely take tariff hikes well before the general elections, slated for the first half of calendar 2024.

IIFL
“With the parliamentary elections in India lined up in H12024, we now assume tariff hikes only in 2QFY25. Potential market-share gain opportunities for Jio and Bharti on Vi’s delay in fund-raising—have reduced the probability of a tariff hike in the near term”

CT Bureau