Telecom Tariff Hikes to Generate Rs 20,000 Crore in Additional Profits, ICRA Projects 12-14% Revenue Growth

The recent telecom tariff hikes announced by major telcos are projected to yield an additional Rs 20,000 crore in operating profits. Improved financial metrics will enable the industry to deleverage and invest in technology upgrades and network expansion. ICRA forecasts a 12-14% revenue growth in FY2025.

The recent hike in telecom tariffs by leading telcos is set to generate an additional Rs 20,000 crore in operating profits for the industry, according to ICRA. The improved financial landscape will allow the sector to undertake crucial deleveraging and fund technological advancements.

This optimistic outlook follows tariff increases by Reliance Jio and Bharti Airtel, marking significant hikes ranging from 10 to 27 per cent. The enhanced Average Revenue Per User (ARPU) levels are expected to drive substantial operating profits once the hikes are fully absorbed.

ICRA also predicts a 12-14% revenue growth for FY2025, translating into a healthy rise in operating profits. The reduction in debt levels, coupled with muted spectrum auction activity and controlled capex intensity, is expected to further solidify the industry's financial position.

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