Tag: telecom sector India

  • Vi, Airtel, Indus, Tata Comm Q2 results preview

    Vi, Airtel, Indus, Tata Comm Q2 results preview

    JM Financial expects telecom companies to post modest sequential growth in average revenue per user (ARPU) and revenue in the September quarter, depsite the ongoing subscriber upgrades and an extra day in the quarter. Ahead of the quarterly earnings, the domestic brokerage retained its ‘Buy’ rating on Bharti Airtel (target price: Rs 2,240), Bharti Hexacom (target price: Rs 2,000), and Tata Communications (target price: Rs 2,000).

    JM Financial maintained its positive view on Reliance Jio due to an expected 13 per cent CAGR in wireless ARPU over the next 3–5 years, supported by tariff hikes, premiumisation, and 5G adoption. Vodafone Idea’s rating has been upgraded to ‘Add’ from ‘Hold’, with a target of Rs 9.50, reflecting potential AGR relief. Indus Towers is downgraded to ‘Reduce’ from ‘Hold’ with a target price of Rs 340. the brokerage said.

    Jio’s ARPU is anticipated to rise 1.1 per cent QoQ to around Rs 211, with subscriber gains of 70 lakh, driving revenue and Ebitda growth of 2.4 per cent and 2.5 per cent QoQ, respectively. Bharti Airtel is projected to see 2 per cent QoQ growth in India wireless revenue and 2.1 per cent QoQ growth in Ebitda, led by strong mobile broadband subscriber additions (72 lakh) and a 1.6 per cent QoQ ARPU improvement to Rs 254.

    Bharti Hexacom is likely to report 2 per cent QoQ growth in wireless Ebitda on the back of healthy MBB subscriber additions (7 lakh) and a 1.6 per cent QoQ ARPU increase to Rs 250, JM Financial said.

    Vodafone Idea’s revenue, reported Ebitda, and cash Ebitda are expected to grow 0.8 per cent, 1.1 per cent, and 0.9 per cent QoQ, respectively, as ARPU improves 1.2 per cent QoQ to Rs 167. This could be partly offset by a net subscriber loss of 5 lakh million, though MBB subscribers may increase by around 10 lakh, JM said.

    Indus Towers is projected to see healthy net tenancy additions (6,100 in 2QFY26 vs 5,800 in 1QFY26), driven by Bharti’s rural expansion and Vodafone Idea’s network rollouts. While average rental per tenancy could decline 0.3 per cent QoQ due to sharing discounts on second tenancies, reported EBITDA may grow 0.3 per cent QoQ, with adjusted Ebitda rising 2.4 per cent QoQ after accounting for past dues recovery. Bharti Hexacom’s digital portfolio is expected to support.

    Tata Communications is seen reporting revenue and Ebitda growth of 1.2 per cent and 1.8 per cent QoQ, though core connectivity may be impacted by recoverability issues in the SAARC region. BusinessToday

  • Internet users in India top 100 cr, up 3.48%

    Internet users in India top 100 cr, up 3.48%

    India has officially crossed a historic digital milestone: the number of internet subscribers has surpassed 100 crore (1 billion) as of June 2025. According to the latest telecom data, the March–June 2025 quarter recorded a 3.48% growth in internet users, showing how deeply connectivity has penetrated across the country.

    This achievement not only cements India’s place as one of the world’s largest online populations but also reflects the success of Digital India initiatives, affordable data plans, and rural internet expansion.

    India’s Journey to 100 Crore Internet Users
    Just over a decade ago, internet access was limited to urban centers and a small percentage of the population. However, the introduction of low-cost smartphones, cheaper data tariffs, and government-backed digital inclusion programs transformed the landscape.

    • In 2015, India had around 30 crore users.
    • By 2020, the base had grown to 70 crore, largely fueled by the Jio revolution.
    • By mid-2025, India crossed the 100 crore milestone, marking one of the fastest internet adoption journeys globally.

    Rural vs. Urban Internet Growth
    One of the key drivers of this surge is rural connectivity.

    • Urban areas already have high penetration levels, with nearly 70–75% of the population connected.
    • Rural areas, however, have been the growth engine in recent years, thanks to:
      • Affordable smartphones under ₹5,000
      • BharatNet fiber rollout in villages
      • Regional-language apps and OTT platforms
      • Digital payment adoption through UPI in rural economies

    This rural shift is critical because more than 65% of India’s population still resides outside urban areas, meaning the digital story is far from over.

    Mobile Internet Dominance
    Out of the 100 crore internet subscribers, the vast majority are mobile internet users. India’s internet boom has been driven primarily by:

    • Low-cost 4G plans from Reliance Jio, Airtel, and Vodafone Idea
    • Rapid 5G rollout in tier-1 and tier-2 cities since 2023
    • Bundled OTT and app services with mobile data packs

    Broadband Internet (Fixed-Line)
    While mobile dominates, fixed broadband has also been growing steadily.

    • Currently, broadband subscribers stand at around 40–50 million, a fraction of total users.
    • However, demand is rising due to remote work, online learning, and gaming.
    • Fiber-to-the-home (FTTH) expansion from JioFiber, Airtel Xstream, and BSNL Bharat Fiber is set to accelerate growth.

    What’s Driving This Surge?

    1. Affordable Data Costs
      • India continues to enjoy one of the lowest mobile data rates globally, averaging under ₹10/GB.
    2. Smartphone Penetration
      • Over 800 million smartphone users now form the backbone of India’s internet base.
    3. Digital Payments & E-commerce
      • UPI transactions cross billions each month, pushing even first-time users online.
    4. Government Push
      • Programs like Digital India, BharatNet, and PM-WANI Wi-Fi hotspots have expanded reach.
    5. OTT & Entertainment Demand
      • Streaming platforms, regional content, and gaming are keeping Indians online longer than ever.

    The Global Context
    India’s internet subscriber base is now second only to China, which has around 1.1–1.2 billion users. However, India stands out due to:

    • Higher growth rate compared to mature markets.
    • Cheaper data costs than global averages.
    • Larger untapped rural market still waiting to come online.

    This means India’s digital economy is set to become a key driver of global internet traffic in the next few years.

    Challenges in India’s Internet Growth
    Despite the achievement, several challenges remain:

    1. Digital Divide
      • Urban–rural disparities persist, with many rural users still lacking high-speed connections.
    2. Network Quality Issues
      • Call drops, slow speeds in congested areas, and inconsistent coverage remain common complaints.
    3. Cybersecurity Concerns
      • With more first-time users online, India faces rising risks of cyber fraud, phishing, and scams.
    4. Affordability of Devices
      • While data is cheap, the cost of smartphones and laptops is still a barrier for some low-income groups.

    The Road Ahead: India’s Digital Future
    With internet users crossing 100 crore, the focus will now shift to quality, inclusivity, and advanced services.

    • 5G Expansion: Wider rollout in tier-2 and tier-3 cities will boost adoption.
    • Digital Public Infrastructure: Platforms like UPI, Aadhaar, ONDC (Open Network for Digital Commerce) will create new digital ecosystems.
    • Regional Content Boom: Vernacular internet will dominate the next wave of growth.
    • AI & IoT: As AI tools and smart devices become mainstream, internet dependence will grow further.
    • Rural Digital Literacy: Awareness programs will ensure new users benefit safely from connectivity.

    Expert Take
    Industry experts believe the next 10 crore users will be the hardest to reach, as they are mostly from remote or economically weaker sections. Bridging this gap will require:

    • Affordable entry-level devices
    • Community Wi-Fi models
    • Government and private sector collaboration

    If India succeeds, it could not only expand its user base but also redefine global digital participation.

    Conclusion
    India’s internet subscriber base crossing 100 crore is a milestone that highlights both the success of digital transformation and the potential of untapped markets.

    With a 3.48% quarterly growth rate, expanding rural access, and government-backed digital infrastructure, India is well-positioned to drive the next wave of global internet adoption.

    The coming years will focus not just on numbers but on ensuring reliable, inclusive, and safe digital connectivity for every Indian.
    The NewsBit Bureau