THE CHIP SHORTAGE is not only affecting the supply and prices of smartphones, it is likely to hit telecom operators as well. Rising prices of smartphones due to the chip shortage could defer upgrades by feature phone users and consequently slow the movement of 2G subscribers to 4G.
Telecom industry executives apprehend if this were to happen, all telecom operators may see slower addition of 4G users, affecting average revenue per user (Arpu). As per industry estimates, a 2G user's Arpu moves up by around four times on upgrading to 4G.
This story is from the May 23, 2022 edition of Financial Express Mumbai.
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This story is from the May 23, 2022 edition of Financial Express Mumbai.
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