Arpu

Jio and Airtel are likely to see an improvement in customer base as well, while Vodafone Idea may arrest part of the subscriber churn because of the higher recharges by feature phone users and clarity on staggered payment of AGR dues

The tariff differentiations between telcos -- RJio, Bharti Airtel Ltd (BAL) and Vodafone Idea Ltd (VIL) -- have also been gradually thinning away over the past nine to 12 months, indicating lowering competition intensity

Given the dissimilarity in reporting subscriber count, some analysts prefer to look at revenue while comparing the two firms, the sum product of Arpu and subscriber count

Telco’s annual cash requirement needs a 32% rise in realizations or average revenue per user over the next 6-9 monthsThe instalment plan, if allowed by the apex court, will also lift the value of the group’s investments in tower infrastructure

The extent of the hike and its impact on volumes will be known only after a while, but it is clear that ARPU and eventually earnings are set to riseARPU can rise to more than ₹200 if the regulator sets a floor price as suggested by telcos, said an analyst at a domestic institutional brokerage firm

Despite the growth in all these metrics, its average revenue per user fell as most of the subscribers added were low-paying usersA declining ARPU means subscriber additions on the network outpace its growth in revenue

The company’s operating revenue rose 33.7% year on year to ₹12,354 croreARPU stood at ₹120 with 355.2 million subscribers of September end

Launch of Wynk tube and minimum recharge plans have helped the telecom firmBharti has also introduced an e-book app as a subscription service for niche users

Trai had justified the IUC cut saying it provides incentives for telcos to upgrade to efficient technologies, which will result in lower costs for consumers. But as far as affordability for low-end users goes, the opposite is already happening

Reliance Jio generates far more data traffic on its network than Airtel, Vodafone and Idea Cellular combined