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Tariff Hikes in Telecom: Boosting ARPU but Straining Usage Trends

Tariff hikes have boosted ARPU but revealed signs of strain in data usage, raising concerns about the sustainability of future price increases.

Parag Kar by Parag Kar
1 Jan, 2025 - Updated On 8 Jan, 2025
in Telecom Business Challenges
Reading Time: 3 mins read
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Today, TRAI released the Indian Telecom Services Performance Indicators Report for the period of July–September 2024. This report holds particular significance as it provides the first official insights into the impact of recent tariff hikes on the telecom industry. Below are the key findings from the report.

Wireless ARPU Impact: Growth Driven by Prepaid Segment

The Average Revenue Per User (ARPU) for the wireless segment of the industry saw a significant increase of 9.5%. The ARPU rose from ₹157.5 in the previous quarter to ₹172.6 in this quarter. Interestingly, the majority of this growth came from the prepaid segment, where ARPU jumped by 10.5%, from ₹154.8 to ₹171. In contrast, the postpaid segment showed only a marginal increase of 0.8%, moving from ₹189.2 to ₹190.7. The figure below illustrates these trends.

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Tags: 4G Data5G GrowthConsumer SpendingData Usage TrendsIndian Telecom SectorMPCE AnalysisPostpaid ARPUPrepaid ARPUPrice ElasticityTariff HikesTelecom ConsumersTelecom IndustryTelecom RevenueTRAIWireless ARPU
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