Reliance Jio’s (RJIO) launch in 2017 led to one of the most brutal price wars in India's telecom sector. Due to the competition among the leading telecom service providers, the industry average revenue per user or ARPU plunged 38 percent, which led to total industry size shrinking to Rs 1.4 trillion (Rs 1.4 lakh crore) from Rs 1.8 trillion (Rs 1.8 lakh crore). However, finally there’s light at the end of the tunnel, as analysts perceive there is hope on the horizon, as mobile broadband service penetration is growing at a very fast pace.

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Edelweiss in a report said that price hikes are imminent as RJIO approaches its 400 million subscribers' milestone, and telecom operators’ try to monetise their non-core assets. These prospects make it imperative for investors to repose confidence in the telecom industry’s long-term health.

The brokerage house predicts price recovery in the telecom sector from the second half of FY20, and industry ARPU going up to pre-RJIO level of Rs 156 by the end of FY22.  The report suggests that in Q3FY19 the sector APRU will stand at Rs 98. 

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"However, Reliance Jio and Airtel are in a better position for price realisation. Vodafone is going to come up with rights issue shortly, which will also have an effect on share price," Gorakshakar said. 

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