Business Standard

Telcos

Tariff hikes to push telcos' Arpu to decadal high of Rs 225 in FY26: CRISIL

The near-simultaneous tariff hikes by all major private operators will push up telcos' average revenue per user (ARPU) to a decadal high of over Rs 225 in FY26, domestic ratings agency Crisil said on Tuesday. Credit profiles of telcos will also improve on the higher profitability and the lower capital expenditure, the agency said. The ARPU -- one of the most keenly tracked metric influencing the financial health of an entity -- will increase 25 per cent in FY26 when compared to FY24, it said. "The industry ARPU should dial up to a decadal high of Rs 225-230 by end of next fiscal compared with Rs 182 last fiscal," its deputy chief ratings officer Manish Gupta said. It can be noted that after the formation of the new government following the general elections, the top three private sector telcos hiked their tariff rates by up to 20 per cent. Gupta said the increased data usage following the introduction of the 5G services will also help the ARPUs. He said customers have also been .

Tariff hikes to push telcos' Arpu to decadal high of Rs 225 in FY26: CRISIL
Updated On : 16 Jul 2024 | 3:51 PM IST

Telecom minister to meet telcos and internet service providers on Tuesday

Jyotiraditya Scindia met with satcom, OEM and electronic makers on Monday

Telecom minister to meet telcos and internet service providers on Tuesday
Updated On : 15 Jul 2024 | 10:23 PM IST

Tariff hikes signal better profitability for telcos going forward: ICRA

The latest telecom tariff hikes announced by telcos can yield additional operating profits of around Rs 20,000 crore for the industry once they are fully absorbed, ICRA said on Friday. With an improved financial metrics, the industry will have the headroom to undertake deleveraging as well as fund capex for the technology upgrade, and network expansion, Ankit Jain, Vice President and Sector Head of Corporate Ratings, ICRA said. The domestic rating agency's view comes after Reliance Jio and Bharti Airtel announced they would roll out tariff hikes - in the range of 10-27 per cent - marking the first major telecom tariff increase in the industry in a span of two-and-a-half years. "The latest round of tariff hikes wherein the telcos increased the prepaid tariffs by around 15-20 per cent will provide the traction in the (Average Revenue Per User) ARPU levels and can result in additional operating profits of around Rs 20,000 crore for the industry once these hikes are fully absorbed," ICR

Tariff hikes signal better profitability for telcos going forward: ICRA
Updated On : 28 Jun 2024 | 5:52 PM IST

Spectrum auction ends on Day 2 with total Rs 11,340 cr bids, officials say

Volume limited as large part of spectrum already auctioned, says Scindia

Spectrum auction ends on Day 2 with total Rs 11,340 cr bids, officials say
Updated On : 26 Jun 2024 | 11:40 PM IST

Telcos dial into caller ID service trials to combat rising spam calls

Telecom operators are assessing the feasibility of CNAP, where both number and caller name will be displayed during incoming calls

Telcos dial into caller ID service trials to combat rising spam calls
Updated On : 15 Jun 2024 | 1:06 PM IST

Tata Elxsi, Red Hat ink pact to boost telco network monetisation; stk up 2%

The uptick in share price came after Tata Elxsi announced that it has collaborated with Red Hat to boost telecom network monetisation

Tata Elxsi, Red Hat ink pact to boost telco network monetisation; stk up 2%
Updated On : 14 Jun 2024 | 11:36 AM IST

COAI renews demand for revenue share between telcos, traffic generator apps

Telecom industry body COAI renewed its demand for revenue share between telcos and large traffic generator apps like Netflix and Instagram, saying telecom operators would need additional fund to upgrade infrastructure to meet the increasing demand for bandwidth. In a letter to telecom secretary Neeraj Mittal, Cellular Operators Association of India (COAI) said it is imperative that the Indian government takes critical note of the issue facing the telecom sector at this juncture and help create "an apt precedent for the world". The telecom industry body also said that substantial investments are required to be made by telcos for GPU (graphic processing unit)-based high-speed servers to support demand of AI-based applications as well as high definition video streaming by several apps that are also referred as larger traffic generators (LTGs). Large traffic generator apps include YouTube, Facebook, WhatsApp, Netflix, etc. LTGs, it suggested, need to share their revenue with telcos for

COAI renews demand for revenue share between telcos, traffic generator apps
Updated On : 25 Apr 2024 | 10:35 PM IST

DoT asks telcos to suspend USSD-based call forwarding, switch to other mode

The Department of Telecom has asked telecom operators to deactivate USSD-based call forwarding with effect from April 15 and move to alternative methods to re-activate it, an official order said. Mobile subscribers use USSD service just by dialling any active code on their phone screens. The service is often used for checking IMEI numbers and mobile phone balances, among others. The order has been issued to check frauds and online crimes that are operated through mobile phones. In an order dated March 28, the DoT said that it has come to its notice that USSD (Unstructured Supplementary Service Data) based call forwarding facility, most commonly known *401# services for unconditional call forwarding services, is being misused for some unwarranted activities. "In this regard, it has been decided by the competent authority that all licensees shall discontinue the existing USSD-based call forwarding services with effect from April 15, 2024, till further notice. "All existing subscribe

DoT asks telcos to suspend USSD-based call forwarding, switch to other mode
Updated On : 30 Mar 2024 | 12:36 AM IST

Telcos made Rs 10,000 crore extra capex to support large apps: COAI

Telecom operators are estimated to have spent an additional Rs 10,000 crore in 2022-23 to support traffic generated by large entertainment and communication apps, according to an estimate of telecom industry body COAI. Cellular Operators Association of India, Director General, SP Kochhar told PTI that the infrastructure support provided by telecom operators to top 4-5 apps large traffic generator apps also corresponds to their revenue growth and in the absence of fair share norms for large apps, the government has lost about Rs 800 crore revenue in 2023 alone. He said that the industry body has submitted a white paper to the Ministry of Finance in this regard in January. "The additional capex required to provide the infrastructure to carry the LTG-related data traffic for the year 2023 alone amounts to around Rs 10,000 crore. Accordingly, the proposed fair share to TSPs on the amount would have resulted in enhancing AGR-related licence fees and USOF levies (combined 8 per cent of A

Telcos made Rs 10,000 crore extra capex to support large apps: COAI
Updated On : 29 Feb 2024 | 12:01 AM IST

Corporate India on overdrive to celebrate Ram Mandir inauguration

Some are offering a part of their profits as donations, telcos are beefing up the number of cellular towers to ensure better connectivity, and there are those distributing jalebis and food platters

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Updated On : 18 Jan 2024 | 11:31 PM IST

Telcos gross revenue rises 5.8%, govt spectrum usage charge declines 59%

Telecom service providers gross revenue increased by 5.88 per cent on a year-on-year basis to Rs 80,899 crore during the quarter ended June 2023, sector regulator Trai said on Tuesday. According to the Telecom Regulatory Authority of India (Trai) Performance Indicator Report, the gross revenue declined 5.22 per cent on a quarterly basis from Rs 85,356 crore registered in March 2023 quarter. The applicable gross revenue (ApGR) and adjusted gross revenue (AGR), on which government share of revenue is calculated, increased by 6.17 per cent and 8.42 per cent to Rs 78,349 crore and Rs 65,354 crore, respectively, according to the report. Gross Revenue (GR) decreased by 5.22 per cent, Applicable Gross Revenue (ApGR) fell by 0.36 per cent and Adjusted Gross Revenue (AGR) increased by 1.75 per cent during the quarter ended June 2023. On YoY basis, GR increased by 5.88 per cent, ApGR rose by 6.17 per cent and AGR increased by 8.42 per cent in the quarter ended June 2023, the report said. The

Telcos gross revenue rises 5.8%, govt spectrum usage charge declines 59%
Updated On : 05 Dec 2023 | 10:39 PM IST

War between OTT and telecom companies drives COAI to track data use

Confirming the move, S P Kochar, director general of COAI, said that the aim is to put the information in public domain for all stakeholders and also for the government

War between OTT and telecom companies drives COAI to track data use
Updated On : 20 Oct 2023 | 11:54 PM IST

I-T dept may raise tax demand retrospectively from telcos: Analysts

The Supreme Court has set aside a Delhi High Court order of December 2013 and ruled that the licence fees paid by telecom operators should be treated as a capital expense

I-T dept may raise tax demand retrospectively from telcos: Analysts
Updated On : 17 Oct 2023 | 11:54 PM IST

Supreme Court ruling on telcos may be a one-time hit, say analysts

Say I-T demand for shortfall in taxes for the prior period, along with applicable penalties, is likely

Supreme Court ruling on telcos may be a one-time hit, say analysts
Updated On : 17 Oct 2023 | 11:07 PM IST

No plan to share revenue of OTT platforms with telcos, says govt: Report

Telecom firms have been asking OTT platforms to share their revenues with the telecom service providers as some apps have begun to provide bandwidth-heavy offerings

No plan to share revenue of OTT platforms with telcos, says govt: Report
Updated On : 19 Sep 2023 | 12:20 PM IST

ARPU of Indian telcos to rise 8-10% to Rs 190 this year, says CRISIL

CRISIL added that the operating profits of these companies could record a 15 to 17 per cent rise to Rs 1.2 trillion this year from Rs 1.04 trillion in 2021-22

ARPU of Indian telcos to rise 8-10% to Rs 190 this year, says CRISIL
Updated On : 28 Aug 2023 | 1:19 PM IST

Reliance, Vodafone, Airtel may increase their headcount by 25% in FY24

Reliance Jio's total headcount at FY23 end was 95,326; Airtel's headcount was 64,407; and Vodafone Idea's was 15,604

Reliance, Vodafone, Airtel may increase their headcount by 25% in FY24
Updated On : 16 Aug 2023 | 12:18 PM IST

High MNP demand, 5G competition to drive up telcos' marketing expenses

A total of 10.95 million MNP requests were submitted in April, bringing the cumulative number of MNP requests to 830.65 million from 819.70 million at the end of March

High MNP demand, 5G competition to drive up telcos' marketing expenses
Updated On : 30 Jun 2023 | 1:31 PM IST

Trai to update quality of service parameters soon; to meet telcos next mnth

Telecom regulator to meet telcos on call drop, network issues next month

Trai to update quality of service parameters soon; to meet telcos next mnth
Updated On : 28 Jun 2023 | 9:03 PM IST

TMS Ep458: Biparjoy cyclone, JioCinema, equity markets, MQ-9B drone

What are the economic implications of Biparjoy? After telcos, is Jio coming for OTTs? Where to invest as markets trade near record highs? What is the MQ-9B 'predator-B' drone? Answers here

TMS Ep458: Biparjoy cyclone, JioCinema, equity markets, MQ-9B drone
Updated On : 20 Jun 2023 | 8:00 AM IST