Telecom companies brace for a 4% fall in average revenue per user

ARPU expected to bottom out gradually in September quarter

Telcos are in for a tough quarter as analysts predict a 3 per cent fall in average revenue per user (ARPU) on a sequential basis during the second quarter. This is likely to result in a 3-5 per cent decline in India wireless revenues. 

ARPUs are expected to bottom out gradually in the September quarter. However, for the quarter, telcos would have to bear the brunt of higher foreign exchange costs, diesel price uncertainties as well as strong competition from some of Jio’s recent offerings.  

In the June quarter, ARPU declined by 8.8 per cent for Airtel (Rs 105), 4.8