Telcos likely to see modest revenue growth in June Qtr
revenue growth in the June quarter despite higher data usage during the recent IPL cricket tournament as well as stronger demand for international roaming packs in the summer when many venture on holidays overseas, said analysts.
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The slight uptick is mainly because mobile users who opted for 5G packs are still paying lower 4G rates, and the overall volume of subscribers upgrading to higher-priced plans will be modest as most have large amounts of unused data, the analysts said.
Further, some of the digital viewing of IPL cricket action on smartphones was through WiFi and not mobile data, which is also likely to limit sequential revenue growth for the top private carriers.
«Data usage (for the telcos) is estimated to have risen 5-6% sequentially on a month-on-month basis during the recent IPL cricket event, but that is unlikely to trigger beyond 2% sequential growth in telecom sector revenue in the June quarter as consumers, typically, have a lot of unused data which reduces their need to upgrade to costlier mobile broadband plans,» Prashant Singhal, emerging markets (technology, media & telecom leader), EY India, told ET.
He, though, expects a pick-up in overseas travel during the May/June summer holiday season to drive demand for international roaming packs. This would potentially generate an
