Income of the giant 3 telcos may increase by 20-25% in FY: CRISIL Report

The income of the giant three telcos: Reliance Jio, Bharti Airtel , and Vodafone Idea is expected to increase by upto 20-25 percent in the fiscal year 2023 as a result of pricing hikes implemented late last year, according to a research by ratings firm Crisil.

In fiscal 2023, telecom operators are also projected to spend more on networks and regulatory expenditures, which migh affect ARPU growth, and rate hikes "could ease some pressure."

As a result, the top three telcos' revenue is likely to increase by 20-25 percent this fiscal year. According to Crisil : "EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to grow 180-220 basis points this year."

The tariff hikes in December 2019 were implemented for the first time in fiscal year 2021. It said that average ARPU increased 11 percent to 149 throughout the year, owing to higher revenue due to pricing hikes and consumer 'uptrading.' The Crisil report stated:  "ARPU growth slowed to roughly 5 percent in FY 2022, owing to consumer upgrades to 4G and the partial impact of price hikes implemented in November 2021."

According to the report, Vodafone Idea's loss of active users resulted in the company losing leadership in five circles, whereas Reliance Jio acquired six more.

"Intriguingly, an increase in rural customers across category A,B, and C circles has fueled the increase in active subscribers, it continued.