InvestorQ : Why Airtel, Vodafone and Jio are not seeing ARPUs improve despite higher data usage?
Crowny Pinto made post

Why Airtel, Vodafone and Jio are not seeing ARPUs improve despite higher data usage?

Answer
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Mary Joseph answered.
2 months ago


You are right. All the 3 major telecom players saw data consumption up sharply but that has not really translated into higher ARPUs. Airtel saw ARPUs rise by just 1.8% on a MOM basis at Rs.157. This was marginal considering that Airtel registered the highest data usage per subscriber. Reliance Jio also saw its ARPU rising 7.5% to Rs.140.30 despite 30% growth in data usage.

In the case of Vodafone Idea, the ARPUs actually dipped to Rs.114 in the latest month largely on the back of free validity extensions and top ups for nearly 100 million customers. Ironically, the ARPU overall has to be over Rs.230 for the telecom industry to be sustainable and profitable. That is still far away. Apparently, data was lying underused pre-COVID but now people are only beginning to use data fully, leading to flat ARPUs.