Morgan Stanley believes Indian telecom companies are increasingly positioning themselves as large-scale digital distribution platforms, opening up multiple monetisation opportunities beyond traditional connectivity revenues. In a sector note, the global brokerage highlighted that telecom operators now serve as key channels for OTT services, artificial intelligence applications and financial services, creating new revenue pools over the medium to long term.
According to Morgan Stanley, one of the near-term monetisation levers lies in phasing out lower-data plans while offering higher data for the same validity period, effectively nudging users towards higher-value consumption without explicit tariff hikes. The brokerage expects data monetisation to emerge as the primary driver of higher average revenue per user (ARPU), even if headline tariff increases remain limited beyond 2026.
Morgan Stanley added that rising data usage, bundled digital services and deeper customer engagement could allow telecom companies to sustain ARPU expansion in a relatively competitive environment. This shift, it said, reduces dependence on frequent price hikes and improves the quality and durability of revenue growth.
On Bharti Airtel, the brokerage said the company’s valuation multiples appear sustainable, supported by an expected expansion in return on capital employed (RoCE) in its India business over the next two to three years. Morgan Stanley views Airtel as well placed to benefit from structural data growth and evolving monetisation strategies, underpinned by its scale, network quality and diversified digital ecosystem.
Disclaimer: This article is for informational purposes only. The views expressed are those of the brokerage cited and do not constitute investment advice or recommendations.
