Over recent years, the Indian telecom industry has witnessed diminishing competitiveness, a concern exacerbated by escalating license fees, the Supreme Court’s verdict on Adjusted Gross Revenue (AGR), and the substantial financial obligations from spectrum auction fees. Such pressures have compounded the industry’s challenges, leading certain operators to propose tariff increases. Given that Indian telecom services rank among the world’s most affordable, operators like Vodafone Idea find themselves in precarious positions, necessitating additional equity to stay afloat.
This comprehensive analysis endeavors to evaluate the potential repercussions of tariff hikes on individual telecom operators, scrutinizing their revenue allocations across diverse regional markets characterized by varied income levels across rural and urban demographics. Despite TRAI releasing Gross Revenue (GR) and Adjusted Gross Revenue (ApGR) data segmented by circle, the differentiation between rural and urban revenues remains unexplored. This distinction is vital, considering the disparate income brackets within these segments.
