Analysts Predict Significant Increase Amidst Telecom Sector Optimism
In anticipation of the upcoming Lok Sabha elections, the telecom industry braces itself for a potential tariff surge of 15-17%, as projected by a recent analysis from Antique Stock Broking. This move, deemed “imminent” by industry experts, could mark a pivotal moment for major players, with Bharti Airtel positioned as a primary beneficiary of the impending hike.
Foreseen Tariff Adjustments:
- The analysis forecasts a notable tariff increase in the range of 15-17% post Lok Sabha elections, underscoring a positive trajectory for the telecom sector in the forthcoming years.
- Bharti Airtel emerges as a frontrunner in leveraging this tariff surge to its advantage, signaling promising developments for the company’s future financial performance.
Growth Projections for Airtel:
- Airtel’s current Average Revenue Per User (ARPU) of Rs 208 is projected to ascend to Rs 286 by the conclusion of FY27, driven by multiple contributing factors.
- These factors include the expected tariff hike, the migration of 2G subscribers to 4G services, and the uptake of higher data and postpaid plans, both in 4G and 5G spectrums.
Optimistic Outlook for Airtel:
- Antique Stock Broking envisions Airtel experiencing its most robust financial performance in over a decade, propelled by the anticipated tariff escalation, enhanced customer upgrades, and growth in enterprise and Fibre-to-the-Home segments.
- Despite potential challenges associated with Airtel’s distinct 5G rollout strategy, analysts remain optimistic about the company’s ability to maintain its subscriber base and sustain growth momentum.
Industry Landscape and Competitive Dynamics:
- While Airtel stands poised for growth, competitors like Vodafone Idea and BSNL grapple with declining market shares, attributed to financial constraints and operational hurdles.
- Jio, on the other hand, has significantly bolstered its market presence, emerging as a major beneficiary amidst the industry’s competitive landscape shifts.
As the telecom sector navigates through evolving market dynamics and regulatory frameworks, Airtel’s strategic positioning and proactive measures underscore its resilience and potential for sustained growth in the years ahead.
