ICRA says that the increase in tariff and upgradation of customers from 2G to 4G can improve average revenue per user (ARPU). By the middle of the year, it can be around 220 rupees. This will increase the industry’s revenue from 11% to 13% in the next 2 years and operating margin by about 38% in FY 2022.
Corona epidemic did not affect telecom industry
The Corona epidemic did not have much impact on the telecom industry. The situation improved due to data usage and tariff increase in lockdown. Work from home, data usage increased due to online classes.
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1.6 lakh crores owed to telecom companies
The total adjusted gross revenue (AGR) outstanding on telecom companies is Rs 1.69 lakh crore. At the same time, only 15 telecom companies have paid only Rs 30,254 crore. Airtel owes about Rs 25,976 crore, Vodafone Idea owes Rs 50399 crore and Tata Teleservices about Rs 16,798 crore. Companies have to pay 10 per cent in the current financial year and the remaining amount in the following years.
Tariff rates were increased in 2019
Explain that for the first time in 2019, companies had increased tariffs. Telecom companies had increased tariff rates in December 2019.