India is all hyped up for its 2024 Lok Sabha elections, which will be held in seven phases between April 19 and June 1. The upcoming election seems to be affecting many sectors across the country. Now, it seems the elections are going to have an impact on our phone bills.
According to an analyst report from Antique Stock Broking, the major telecom operators of India including Bharti Airtel and Jio are likely to impose tariff hikes after the 2024 Lok Sabha elections. The report that termed the tariff increase as ” imminent”, has suggested that the telecom industry could see a price hike of 15 to 17 percent post the polls. The analyst report has noted that the biggest beneficiary.
“Bharti Airtel could be the primary beneficiary of this price hike with its ARPU (Average Revenue Per User) going up from Rs 208 to Rs 286 by the end of FY 27, ” said the report. It also added that the revenue of Bharti Airtel might increase to twice the industry average in the next three years. The revenue hike is led by a growth in tariffs, 2G upgradation, growth of enterprise and Fibre to Home network, and fall in capital expenditure after the 5G rollout.
During the FY 24-26 period, Bharti Airtel’s capital expenditure will likely reach Rs 75,000 crore and the analysts predict there will be a ‘stark’ reduction in capex post the 5G rollout which could lead to a positive shift in the telecom sector.
In the last 5.5 years, Jio and Airtel have been gaining increasing market share. Jio has been the biggest beneficiary of this change in market dynamics, with its market share going from 21.6 percent to 39.7 percent during the said period.
Ms Kalinga