Revenue of India's Telecom Sector Surges 100% in Five Years, Bharti Airtel Emerges as Top Beneficiary
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New Delhi, Dec 25 (NationPress) The revenue of India’s telecom industry increased 8 per cent (quarter-on-quarter) to Rs 674 billion (13 per cent growth year-on-year) in the second quarter of FY25, mainly driven by tariff hikes, according to a new report.
Propelled by three rounds of smartphone tariff increases, India's quarterly telecom revenue has nearly doubled (up 96 per cent) since September 2019, indicating a 14 per cent five-year industry revenue CAGR, as reported by Motilal Oswal Financial Services Ltd.
Considering the consolidated market structure in the Indian telecom sector, the rise in data consumption, lower ARPU, and insufficient returns generated by telecom companies suggest that tariff hikes will become more regular. The report anticipates a 15 per cent tariff hike in December 2025.
The average revenue per unit (ARPU) in the telecom industry has almost doubled from Rs 98 in September 2019 to Rs 193 in September 2024, propelled by tariff hikes.
Nevertheless, due to substantial tariff hikes, the industry’s subscriber base stood at 1.15 trillion in September 2024, which is lower than the 1.17 trillion subscribers recorded in September 2019.
Among the telecom operators, Bharti Airtel has emerged as the largest beneficiary of tariff hikes, with an implied ARPU increase of 2.2 times, achieving a 17 per cent five-year CAGR.
“We believe the significant enhancement in the data subscriber proportion has also been a crucial factor driving Bharti’s industry-leading ARPU,” the report stated.
During the period from 2019 to 2024, Bharti’s revenue surged 2.6 times, corresponding to a 21 per cent five-year revenue CAGR, with an incremental revenue market share significantly higher at 48 per cent.
“With Vi’s (Vodafone Idea) substantial capex plans, we foresee a potential slowdown in the pace of market share gains. However, RJio and Bharti are likely to keep gaining market share at Vi’s expense,” the report concluded.
