Cellular Industry to grow without tariffs hikes

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New Delhi: The average revenue per user (ARPU) of the cellular industry could grow even without tariffs hikes as data usage and penetration zooms over the last 1-to-2 years.

As India Ratings and Research (Ind-Ra): “The sliding per voice tariffs, growing data tariffs, increasing data usage per subscriber and increasing data subscribers in the overall subscriber base over the last one year indicate that the average revenue per user of the industry could grow even without tariffs hikes.”

Besides, the rating agency, cited that the industry-wide subscriber base increased by 4 million subscribers on a month-on-month (MoM) basis in June 2021 to 1,181 million subscribers, as against a sharp decline of 6.3 million subscribers in May 2021.

“Broadband subscriber base also grew in June 2021 by 11.7 million subscribers to 769 million subscribers. However, the visitor location register subscriber base, which shows active subscribers, reported a dip by 1.3 million subscribers mom in June 2021 to 985 million subscribers,” the agency said.

In terms of broadband subscribers, it cited official data which showed an increase of 65.1 percent of the overall wireless subscriber base in June 2021 from 64.4 percent in May 2021 and 47 percent in March 2019.

In June 2021, the number of broadband subscribers increased by a strong 11.7 million, the broadband penetration as a percentage of the overall subscriber base continued.