Archive · 2 Jun 2025
Mobile Tariffs May Rise Next Year, Says BofA Securities
Mobile phone bills in India might go up next year, but probably not as much as before.
Experts think the increase could be around 15%.
Even without a price increase, phone companies are making more money because people are using better phones.
The company that studies this also thinks that the market will stay competitive.
Also, more people are traveling now than before the pandemic, even if there's an economic slowdown, indicating this trend might continue for a few years.
BofA Securities predicts a potential 15% mobile tariff hike in India in the next financial year.
ARPU is expected to increase by around 12% this year due to user behavior, even without price hikes.
Tower companies in India trade at lower multiples than global peers because of various factors.
Consolidation is expected in the quick commerce market, easing intense rivalry.
Travel demand remains strong, with Indians taking more trips annually.
- Who
- BofA Securities
- What
- Predicts potential mobile tariff hikes and market trends
- When
- Next financial year (for tariff hikes).
- Where
- India
- Why
- Due to industry analysis and market behavior.
Industry Analysis
BofA Viewpoint
Market Structure
Industry Analysis
BofA Securities anticipates a continued three-player market in the telecom sector.
BofA Viewpoint
Industry analysts recognize potential duopoly risks.
- Potential Tariff Hike
- Around 15% (next financial year)
- ARPU growth (without hike)
- Around 12%
- Previous Tariff Hikes
- 40%, 25%, 15%
- Quick Commerce Market
- Likely to consolidate
- Travel Frequency
- Increased post-COVID