Telecom industry's revenues likely to rise 14-15% in current financial year: COAI

31 Aug 2020 Evaluate

Cellular Operators' Association of India (COAI) has said that telecom industry's revenues are expected to rise 14-15 per cent in the current financial year led by some improvement in average revenue per user (ARPU), though the subscriber base may remain flat with rural growth offsetting SIM consolidation in urban locations. The newly appointed Director General of COAI S P Kochhar said that any duopoly situation in the current three-player private telcos market can ‘never be a good thing’ and asserted that sufficient competition among the operators is required for ensuring that subscribers get good services at better prices.

Kochhar said that industry's financial distress is ‘evident’ and that the COAI will continue to push for relief including reduction in spectrum usage charges (SUC) and licence fee; and exemption of GST on licence fee and SUC, as well as on payment of spectrum acquired in auctions. He said it is in the interest of the country that duopoly does not come in and ‘we have more competition, so better services at better prices can be offered to subscribers’.

He said ‘We also expect the subscriber base to remain flat in this fiscal, and the rural subscribers will grow to offset the SIM consolidation in urban geographies’. He added that ‘Data consumption per user per month will move higher from 12 GB to 15 GB by next year, and there will be increase in ARPU this fiscal but whether that will be significant increase or not is something we will have to see’. However, he noted that the association has not received any indication as yet from its members companies on tariff hike.

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