Broadband Subscribers Might Increase In Q3 FY 2021: Report


All telecom operators are expected to garner more subscribers in the coming days due to the addition of new broadband users and high data usage. Besides, the ARPU of Airtel and Reliance are likely to see 1.5 percent growth, while Vi might post higher due to data usage in Q3 of this financial year.

Broadband Subscribers Might Increase In Q3 FY 2021: Report

"We expect 3QFY21 to be marked by continued robustness in MBB (Mobile Broadband - 3G/4G) subscriber additions, primarily driven by the demand for ed-tech and the continuing work from home and the strong smartphone shipments," JM Financial reports said. The firm said that Sunil Mittal led Airtel is going to add more subscribers due to growth in the broadband segment. The firm believes that Vi (Vodafone-Idea) will continue to lose customers.

Similarly, financial expert firm Axis Capital said that the revenue of wireless service providers might improve year-on-year in the same quarter as subscriber additions have increased. "ARPU to improve driven by upscaling (migration to 4G from 2G)...Subscriber addition for Jio to be muted, while Vodafone Idea to continue losing subscribers," it added.

On the other hand, another Financial firm Motilal Oswal said Reliance Jio might improve three percent of ARPU, while Airtel might garner 1.5 percent. The Vi might attract 2.5 percent ARPU as feature phone users have already left the network during the lockdown.

Meanwhile, Airtel is likely to align its spectrum to launch 5G services and to increase its 4G services in the country. It is worth noting that the spectrum bands like 1800 MHz and 2300 MHz will play important role in the 5G deployment. Both 1800 MHz and 2300 MHz are expected to offer good connectivity and better coverage in those areas where 5G is available Currently, Airtel is offering 57 MHz in eight areas and it is going to buy more spectrum in the upcoming auctions.

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