The Indian telecommunications sector may witness a 12 to 15 percent increase in tariffs over the next four to five months. This forecast follows a recent report from a research center due to improved pricing conditions in the market resulting from company mergers.
Financial Status Analysis and Growth Forecast
In the financial sector, three main telecom operators, namely Bharati Airtel, Reliance Jio, and Vodafone Idea Limited (VIL), are expected to see an increase of 0.8 to 2.0 percent in average revenue per user (ARPU) in the second quarter of the fiscal year 27-2026. This growth is primarily due to the migration from 2G networks to 4G and 5G, an increase in postpaid subscribers, and an increase in the number of days in this quarter.
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Market Share Changes and Network Advancements
This report also indicates that Bharati Airtel and Reliance Jio are consistently increasing their market share of subscribers, which will be at the expense of Vodafone Idea. Reliance Jio is expected to gain about 8 million new subscribers in this quarter, while Bharati Airtel is also projected to add around 3 million new subscribers. Additionally, Vodafone Idea is expected to gain about 1 million new customers.
Data usage per customer is also expected to remain strong due to the expansion of 4G and 5G networks. The report notes that Reliance Jio and Airtel have covered over 95 percent of areas with 5G services, focusing on increasing the number of 5G devices in their networks. Meanwhile, Vodafone Idea's 5G network is available in about 200 cities, and the company is working on expanding its 5G coverage.
Financial Status Forecast and Funding Needs
The report also mentions Vodafone Idea's negotiations with banks for financing of 250 billion rupees, which is part of the company's 450 billion rupee investment plan for the fiscal years 27-29. Reliance Jio and Airtel are also observing strong demand for 5G FWA services and increased fixed broadband, as penetration in this sector remains low.
For Reliance Jio, new subscribers are expected to reach 8 million, totaling 541 million, with a projected 1 percent increase in ARPU to 218 rupees per month. This growth is attributed to the increase in 5G FWA subscribers and more days in this quarter, which translates to an estimated 2.6 percent increase in revenue.
Bharati Airtel is also expected to add 3 million new subscribers, reaching 380 million, and the company's ARPU is expected to rise to 269 rupees. This growth is due to the migration from 2G to 4G and more days in this period. The company is also expected to see a revenue growth of 3.1 percent.
Vodafone Idea is expected to add 1 million new subscribers, bringing its total to 194 million, and the company's ARPU is expected to reach 178 rupees. Management's comments regarding the company's investment activities and financing advancements will be closely monitored.
In addition to these three telecom companies, the report mentions Indus Towers, which is expected to see a 1.7 percent revenue growth during this period, while Tata Communications is also projected to experience a 1.6 percent revenue growth.
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