Telecom services industry to post moderate 7-9 pc revenue growth in FY24: ICRA

The telecom services industry is expected to post moderate revenue growth of 7-9 per cent in FY 24, predicted ICRA.

The credit agency said that the moderate growth revenue is largely due to muted average revenue per user (ARPU) expansion in the absence of tariff hikes in the near-term.moderate growth revenue is largely due to muted average revenue per user (ARPU) expansion in the absence of tariff hikes in the near-term. ICRA believes that the ongoing 5G roll-out entails densification of the network and sizable deployment of fibre, which is likely to increase the capex intensity in the near to medium term.

This would keep debt levels elevated at around ₹6.1-6.2 lakh crore as on March 2024 (as against ₹6.3 lakh crore as on March 31, 2023).

"ICRA expects the telecom services industry to report moderate revenue growth of around 7-9 per cent in FY2024 over FY2023, owing to muted average revenue per user (ARPU) expansion in the absence of tariff hikes in the near-term," ICRA stated in a release.

(With input from agencies)