New Delhi: The telecom industry has experienced robust financial and subscriber growth in FY 2024-25, primarily driven by tariff hikes implemented in July 2024.
According to data released by the Telecom Regulatory Authority of India (TRAI), the average revenue per user (ARPU) for wireless services surged from Rs 149.25 in FY24 to Rs 174.46 in FY25, reflecting a year-on-year increase of 16.89 per cent.
Leading private operators, Reliance Jio, Bharti Airtel and Vodafone Idea (Vi), benefited significantly from the higher ARPU levels.
Vi, in particular, was able to boost its capital expenditure following a successful round of fundraising earlier in the fiscal year.
The company is now looking to secure additional funds to sustain its ongoing investments.
The state-run telecom operator Bharat Sanchar Nigam Limited (BSNL) also saw a revival, not only growing its user base but also reporting net profits for two consecutive quarters, marking a significant turnaround in its financial trajectory.
Prepaid services, which make up the bulk of India’s mobile users, saw ARPU grow from Rs 146.37 to Rs 173.84 over the fiscal year. However, postpaid services recorded a slight decline, with ARPU dipping from Rs 184.63 to Rs 180.86.
India’s wireless subscriber base expanded from 913.14 million at the end of March 2024 to 939.51 million by March 2025, a growth of 2.87 per cent.
Given the already high level of mobile data penetration in the country, this incremental rise indicates continued user acquisition even in a mature market.
Overall industry revenues jumped 15.49 per cent year-on-year, increasing from Rs 1,86,226 crore in FY24 to Rs 2,15,078 crore in FY25. The financial upswing is closely tied to the pricing revisions made last year.
However, with no new tariff hikes expected in FY26, industry analysts anticipate slower revenue growth in the current financial year.
