Bharti Airtel - Industry Leading ARPU, Expectation Of Further Rise Due To Tariff Hike: HDFC Securities
Airtel is in a strong position to gain from the industry’s ARPU growth of 50% over the next four to five years.
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HDFC Securities Retail Research
Bharti Airtel Ltd. is an integrated telecom company, has presence in India, Africa, Middle East and Bangladesh, offering mobile, broadband, fixed line telephone, direct-to-home and enterprise services.
Bharti Airtel has a healthy subscriber base and revenue market share with a pan India network. The company’s spectrum holding is robust and has strong capability to provide 2G, 3G, 4G and now 5G services.
Over the years, Bharti Airtel has expanded its spectrum holding by acquiring spectrum through auctions. Mobile segment contributed 72% of revenue and 28% came from non mobile business in FY22.
We believe that going forward there’s a strong case for increase in tariffs and expect that average revenue per user could rise to Rs 200/month by end FY23 versus ARPU of Rs 190 in Q2 FY23. In the longer term, the company targets ARPU of Rs 300/month.
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