New Delhi, Feb. 19 -- Investors who wish to bet on India's telecom sector have few pure-play options until Reliance Jio Infocomm is listed as a separate company. For now, tariff hikes have lifted all boats as far as the average revenue per user (Arpu) is concerned.

Vodafone Idea Ltd's Arpu rose by Rs.7 sequentially to Rs.173 in the December quarter (Q3FY25) on a subscriber base of 200 million. However, it still makes losses. With nearly Rs.2 trillion of debt, a significant portion being government dues, Vodafone Idea will spend most of its future cash flows on repaying this, even if its profitability improves. This leaves little on the table for shareholders. Plus, its equity base continues to expand with frequent dilution. There's hope ...