Major telecom companies in India have increased mobile plan prices by up to 25%.
India is a top consumer of data, with significant growth in 5G and broadband sectors.
India's wireless data usage surged to 47,629 petabytes in Q2, FY24, driven by increasing teledensity.
5G subscriptions in India are projected to reach 350 million by 2026.
The Union Cabinet approved a Rs. 12,195 crore production-linked incentive (PLI) scheme for telecom products.
The Department of Telecommunications was allocated Rs. 97,579.05 crore in the Union Budget 2023-24.
Telcos aim to improve Average Revenue per User (ARPU) with the recent price hikes.
Tariff hikes are expected to increase telecom company revenues by approximately 15%.
Brokerage houses have raised targets for telecom stocks due to increased revenues and profits.
Indus Towers reported a 13.9% year-on-year increase in the number of towers in March 2024.
The government will not intervene in the tariff hike as Indian tariffs are still among the cheapest globally.
The tariff hike will boost revenues and profits for telecom companies, positively impacting their stocks.