Jio, Airtel may increase rates post 2024 elections: Key details.

Major telecom operators like Airtel and Jio are expected to increase their tariff rates after the 2024 Lok Sabha elections, according to an analyst report from Antique Stock Broking. The world's largest democracy will go to the polls in seven phases between April 19 and June 4, with results announced on June 1.

The analyst report, quoted by PTI, describes the tariff rise as "imminent" and predicts a 15 to 17 percent increase in telecom prices after the general election. Bharti Airtel is expected to benefit most from this price hike, with its ARPU (Average Revenue Per User) projected to rise from ₹208 to ₹286 by the end of FY 27.

The brokerage anticipates Bharti Airtel's revenue to grow at twice the industry average over the next three years, driven by tariff hikes, 2G upgrades, enterprise and Fibre to Home network growth, and reduced capital expenditure post-5G rollout. Bharti Airtel's capex is estimated at ₹75,000 crore for FY 24-26, with analysts predicting a significant reduction post-5G rollout, potentially leading to positive changes in the telecom sector.

While challenges remain due to Bharti's different 5G rollout approach compared to key competitors, Antique Stock Broking believes it's unlikely to significantly impact Bharti's subscriber base or growth. The report also notes that current valuations fail to reflect the emerging highly positive macro environment in the telecom sector.

Furthermore, the report highlights how Jio and Airtel have gained increasing market share over the past 5.5 years at the expense of Vodafone Idea and BSNL. Jio, in particular, has seen its market share rise from 21.6 percent to 39.7 percent during this period.