“For CY23, we expect double-digit revenue growth to continue for the industry, with the consolidation trend continuing.
Mobile phone users are likely to shell out more for their calls with the service providers likely to increase their rates for 4G services.
The telecom operators would also look to lift their average revenue per user (ARPU) from 5G subscribers by offering them larger data quota at a lower cost/GB.
The 5G handsets remain expensive, and we will watch out for the introduction of a cheaper 5G device by Jio.
The CapEx in 2023 by the industry players is set to increase gradually as operators accelerate the pace of 5G network rollout.
During 2023, Jio and Airtel are expected to expand their 5G network. Operators are set to encourage customers to adopt 5G handsets by offering larger data allowances and better speeds.
Delays in fundraising and its inability to invest in 5G could further erode VIL’s (Vodofone Idea Ltd) competitive position among postpaid customers. Inability to pay vendors and invest in business could hurt Vi’s operations, especially its ability to retain high ARPU postpaid customers.
Airtel appears well positioned to benefit from this, in our view. Airtel is yet to collect 75 per cent of its Rs 210 billion rights issue, which it is set to collect in two tranches. We believe one of the tranches could potentially be collected in 2023.
This, on the other hand, remains an overhang for Indus Towers. We expect 1.5k tower additions and lower q-q revenue and EBITDA as it saw a boost in 2QFY23 revenue from the settlement of old dues.
Excerpts from BNP Paribas report.