The cost of mobile recharges is likely to go up after General Elections in 2024, indicates a report released by BNP Paribas on Thursday.
“Telecom tariff hike is a matter of time. We expect 2024 to be a strong year for the industry, with a mid-year tariff hike and moderation or slowdown in capex,” said Kunal Vora, Head, India Equity Research at BNP Paribas India.
Telcos have raised tariffs in 2019 and 2021 but not since. During the last five years, industry growth has been 18-20% in years with tariff hikes and 9-12% in years with stable tariffs, which is stronger than growth seen in other mass consumption categories, according to their study – India Telecoms Report 2024.
BNP Paribas also predicts a slowdown in capex due to the lack of a strong uptake of 5G.
“We also do not see any appetite for more spectrum purchases. With large divergence in capex between the three operators, we find the industry moving towards a duopoly,” Vora added.
“We also do not see any appetite for more spectrum purchases. With large divergence in capex between the three operators, we find the industry moving towards a duopoly,’‘ Vora added.