Telco revenues may surge to Rs 2.78 lakh crore in FY25
telecom sector revenues are expected to surge 63% between FY16 and FY25 despite a broader consolidation that shrank the field from more than 10 private mobile operators to just three. Revenues stood at ₹1.7 lakh crore in FY16 with the sector having more than 10 private companies. This was before Reliance Jio made its debut the following year. Revenues are expected to touch ₹2.78 lakh crore in FY25 in an industry comprising only three private operators — Jio, Bharti Airtel and Vodafone Idea (Vi).
The strong revenue growth will be driven by expected tariff hikes, a pick-up in conversions from 2G to higher revenue-yielding 4G/5G customers and users upgrading to higher value data plans.
Even in the absence of rate hikes, telecom sector revenues this financial year are expected to touch ₹2.46 lakh crore, far exceeding the FY16 levels, amid strong appetite for 4G services and an improving subscriber mix, showed an analysis of Trai data by global brokerage, CLSA. The estimated jump in sectoral revenues (in absolute terms) is even more spectacular at 68% between FY17, when Jio entered the fray, and FY25.
Rapid Consolidation
In FY17, telecom sector revenues stood at just above ₹1.65 lakh crore. Though the sector has seen rapid consolidation and shrunk down to just three large private carriers, sectoral revenues have soared post-Jio's disruptive entry about eight years ago amid rising data services penetration and usage.
«We expect the Indian telecom sector revenue growth to accelerate from 9% in FY24 to 13-15%
