Telecom Industry Forecasts 7-9% Revenue Growth In FY 2024

New Delhi, Aug 17 (KNN) The telecom services sector is projected to achieve a moderate revenue increase of 7-9 per cent in the fiscal year 2024, Rating agency ICRA said.

The growth is attributed to subdued growth in average revenue per user (ARPU) due to the absence of imminent tariff hikes.

ICRA suggests that the current implementation of 5G will involve densifying the network and significantly expanding fiber deployment. This is expected to lead to a rise in capital expenditure (capex) intensity in the short to medium run.

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

"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 said in a release.  (KNN Bureau)