NEW DELHI: With pan-India 5G rollout soon to be completed, telcos will focus on monetizing 5G, including fixed wireless access (FWA) enhancements and price hikes to improve key metrics, according to analysts. will begin to do so.
Kotak Institutional Equities said in a research: “Growing subscriber base and increased customer engagement on 5G could lead to price hikes in the near term. We will continue to raise smartphone prices by 20%.” Note.
“However, future tariff increases should be segmented rather than a ‘one-size-fits-all’ model,” another B&K Securities note said. As the tailwind ends, incremental challenges to industry structure and differences in pricing plans will emerge. ”
According to Kotak analysts, Bharti has consistently focused on premiumization, with postpaid net additions remaining strong at approximately 900,000, an 18% year-on-year increase, and 4G/5G net additions at 7.4 million. The company has maintained its solidity, and the subscriber mix has further improved. Although 5G’s free unlimited data limits monetization from 5G, Airtel has reiterated its position that it will not charge a separate premium for 5G.
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Airtel benefits from the liquidity in the telecom industry and remains well-positioned to leverage its position to further improve its market share. B&K analysts said the next levers of growth will be in postpaid, rural and newer areas.
Airtel’s average revenue per user (ARPU) has increased due to higher customer wallet share capture, increased data consumption, international roaming plans and premiumization (migration from feature phones to smartphones and prepaid to postpaid). 208 rupees, up 2.5% from the previous quarter. Reliance Jio’s ARPU was flat QoQ at Rs 181.7.
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