ICYMI: Tariff hike pass-through to drive ARPUs, ICICI Securities

We expect subscriber addition momentum to be impacted amid SIM consolidation due to tariff hike. Reliance Jio (Jio), with lowest percentage of VLR (active subscriber) on network is likely to see major impact of SIM consolidation with ~5 mn net loss during Q4. On the other hand, Vodafone Idea (VIL) is likely to stabilise somewhat with subscriber loss of ~2 mn. Bharti Airtel (Airtel) is likely to add ~2 mn subscribers and lead the industry. ARPU growth will be seen for all telcos, led by residual benefit of tariff hike. We expect Jio, Airtel, VIL to report ARPU to be up 8%, 12%, 12% QoQ at ₹164, ₹129, ₹182, respectively. The lower ARPU growth for Jio is owing to larger share of long duration renewals. For Jio, revenues are expected at ₹20,581 crore, up 6.4% QoQ. Airtel’s India wireless revenue is expected at ₹17,903 crore, up 11.3% QoQ. For Vodafone Idea, we expect overall revenues to grow 9.1% QoQ at ₹10,602 crore.

For the complete report – https://www.communicationstoday.co.in/telecom-q4fy22-results-preview-tariff-hike-pass-through-to-drive-arpus-icici-securities/

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