Growth in data tariffs, broadband reach show move towards higher ARPU

Data tariffs and the number of broadband subscribers continue to move northwards, showing that the Indian telecom industry is on its way towards a higher ARPU (average revenue per user) regime, according to a report by India Ratings and Research (Ind-Ra).

The report noted that the number of broadband subscribers increased to 59 per cent of the overall wireless subscriber base in June 2020 from 58 per cent in May 2020 and 47 per cent in March 2019.

Moreover, in June 2020, the number of broadband subscribers grew by 14 million, the highest increase seen since November 2019.

"This increase in broadband penetration along with rise in data tariffs reflects that the Indian Telecom Industry is moving towards a higher ARPU regime," it said.

Data tariffs rose to Rs 11.2 per GB in 4QFY20 from Rs 8.5 per GB in 3QFY20, as reported by the Telecom Regulatory Authority of India.

The tariff differentials for the prepaid and post-paid tariff plans among the telcos are already narrowing down over the past one year, said the report.