Telecom Arpu Growth: Data Monetization & Premium Plans

Market trackers now anticipate telecom operators to continue discreetly nudge consumers to change to premium plans, and additionally monetise the taking off information consumption by Indian users, which is expected to maintain churn elevated.

ARPU Growth Forecast

“We build in ~ 11% ARPU CAGR over FY2025-28E, with headline toll walkings of ~ 12%/ 10% in 4QFY26/27. This suggests two-thirds of ARPU development from tariff steps and the equilibrium from non-tariff measures (data money making and premiumization) over FY2025-28E,” Kotak Institutional Stocks claimed in a report Monday.

Telecom drivers will seek to enhance ordinary earnings per user (ARPU) by a mix of headline toll hikes, upgrades to premium plans, and information monetisation, which continues to be underutilised in the past 5 years.

Data Monetization Priority

“Monitoring commentary across telcos highlights that data monetization has actually become an instant calculated priority. Moving forward, we expect the ARPU uptrend to find from a combination of headline toll walkings, information monetization and premiumization, with the market progressively approaching a multi-tier toll construct,” Kotak claimed.

Bharti Airtel and Reliance Jio observed changed gross profits (AGR) rises of 2.6-2.7% in the June quarter, while Vodafone Concept’s AGR continued to be secure, according to telecommunications regulator information. The top 3 drivers’ AGR collectively climbed 16.6% year-on-year.

AGR Performance of Telecoms

Bharti Airtel and Reliance Jio saw a rise in adjusted gross revenues (AGR) by around 2.6-2.7% sequentially in the June quarter, while the metric remained flattish for Vodafone Concept, revealed an analysis of the telecommunications regulator’s data.

AGR (including national cross country, a part of core mobile revenues) of the top three drivers increased 16.6% on-year and 1.4% sequentially to Rs 71,600 crore in Q1FY26, ICICI Securities said in a record.

Information consumption in India has displayed compounded annual development of 16% over the previous 5 years, but telcos are yet to monetise this, as data ARPU has only raised 1% in the previous 5 years, Kotak stated.

Impact of Tariff Hikes

Toll walkings and current discontinuation of entry-level recharge plans by telecom operators such as Jio and Airtel has additionally led to tape level of spin amongst clients relocating from one operator to others, analysts claimed.

“Individuals remain to change in between drivers article toll walks. We note that MNP demands have actually stayed elevated, and higher churn generally drives up dealer comissions/SG & A costs for telcos,” Jeffries stated.