Telecom Sector Sees Potential ARPU Growth in Early 2026

Conditional Growth Expectations

The telecom sector's Average Revenue Per User (ARPU) is anticipated to rise in early 2026, according to analysis by Bumiputera Sekuritas. This potential growth is driven by several key factors including the shift to premium services such as streaming, gaming, and cloud services which naturally command higher value. The successful implementation of tariff adjustments by major operators and the offering of converged packages are seen as positive catalysts for ARPU growth.

Digital Monetization Impact

The monetization of digital services is playing a significant role in strengthening ARPU. Revenue from these digital services has proven to be a crucial factor in enhancing overall revenue per user. This trend is expected to continue into 2026, providing a positive outlook for telecom companies.

Challenges to Growth

Despite the positive outlook, there are challenges that could potentially hinder ARPU growth. Intense price competition remains a significant concern, particularly if the ongoing merger processes in the industry fail to result in meaningful competition consolidation. The ability of operators to raise tariffs could be constrained in a highly competitive environment.

Market Outlook

While the potential for ARPU growth exists, analysts emphasize that it is conditional and not guaranteed. The actual outcome will depend on various factors including how effectively operators can implement premium services and navigate the competitive landscape. As the industry moves into 2026, the balance between growth initiatives and competitive pressures will be crucial in determining the financial performance of telecom companies.