Lockdown data traffic may boost telcos’ revenues

The massive shift to remote working during coronavirus lockdown has driven up data traffic even as the migration of working population to smaller towns has led to a change in distribution of this traffic.

The coronavirus lockdown may prove to be a blessing in disguise for telecom operators as many users have upgraded to more expensive data plans as they work from home, driving up monthly spending.

All telcos had extended the validity of prepaid plans by about two months till end-May as users struggled to recharge phones during the lockdown. (Getty Images/Representative image)

“There has been an increase of around 12-15% in data traffic during the lockdown,” said Rajan S Mathews, director general of Cellular Operators’ Association of India.

“This will translate into some overall gains in revenue as well. My own estimate is that Arpu (average revenue per user) for Airtel, Vodafone Idea and Jio may rise by 10-12% in this quarter as smartphone users upgrade their tariff plans.”

The massive shift to remote working has driven up data traffic even as the migration of working population to smaller towns has led to a change in distribution of this traffic.

All telcos had extended the validity of prepaid plans by about two months till end-May as users struggled to recharge phones during the lockdown, a move that may somewhat offset the gains.