However, the pressure on telecom companies will increase due to AGR, debt and next round of spectrum auction.
Telecom tariff hikes! The cost of your mobile phone is going to increase in the coming few months. This is because telecom companies may increase the tariff rates in the next one or two quarters. Companies can once again take this step to increase their revenue growth in the coming financial year 2021-22 starting from April 1. This information has been revealed in a report by ICRA, a company providing investment-related information. Earlier, last year some telecom companies had increased the tariff. While many industries suffered a major setback during the Corona lockdown, the telecom industry was less affected.
According to the ANI, the ICRA says that the user on average revenue (ARPU) could improve due to an increase in tariff and upgrade of customers from 2G to 4G. In the medium term, it can be around Rs 220, due to which Industri’s revenue will increase by 11 to 13 per cent in the next two years and operating margin by about 38 per cent in FY 2022.
ICRA says that improving cash flow generation and reduction in capital expenditure will reduce the need for external debt for regular operations. However, apart from adjusted gross revenue (AGR) liabilities, debt and next round of spectrum auctions will put pressure on the telecom companies.
Lockdown had less impact on the industry
Most of the industry was affected by the Corona epidemic but it did not have much impact on the telecom industry. The ARPU (Users on Average Revenue) of the telecom companies declined due to non-availability of physical recharge at the beginning of the lockdown (shops were closed during the lockdown) and increased incoming facilities.
During the lockdown, the telecom companies did not stop the incoming call facility even after the validity was not recharged. However, after some time the situation improved due to an increase in usage and tariff. Data usage has increased due to work from a home, online school, content watching aid.
