Telecom sector’s average revenue per user climbs 50% in five years, says brokerage firm

By Our Correspondent
|
June 22, 2025
This image shows mobile phone connection towers. — AFP/File

KARACHI: The telecom sector has recorded a steady rise in average revenue per user (ARPU), which hit Rs313 per month in FY2024-25, up from Rs209 in FY2019-20 -- marking a 50 per cent increase over five years, according to brokerage Topline Securities.

In a post on LinkedIn on Saturday, the firm added that the increase in ARPU reflects a broader shift driven by higher data consumption, the expansion of broadband services, upward tariff revisions and a reduction in multi-SIM usage.

“While this upward trajectory signals improving digital adoption,” Topline noted, “Pakistan’s ARPU still trails regional peers.”According to Topline’s analysis, mobile ARPU hovered near Rs210 for three consecutive years before gaining momentum -- from Rs209 in FY2019-20 to Rs212 in FY2021-22; Rs229 in FY2022-23; Rs276 in FY2023-24; and finally reaching Rs313 by December 2024.

The firm believes continued growth in data services and sector consolidation could help sustain revenue expansion, although operators may face pressures from inflation and regulatory constraints.