Telecom operators are increasingly expanding into insurance services as stagnating Average Revenue Per User (ARPU) and saturated consumer connectivity markets limit growth opportunities.
According to Omdia, bundling insurance with AI-powered cybersecurity, fraud protection, smart home services, and loyalty programs is emerging as a high-value strategy that helps operators generate new revenue while improving customer retention and reducing churn.
Here are some examples of stagnation in ARPU.
Telia posted modest ARPU growth as Nordic markets remain highly penetrated, with growth coming primarily from upselling cybersecurity, entertainment and premium connectivity bundles. Telia’s ARPU rose +1.4 percent to SEK 216 in Q1-2026 against SEK 213 in Q4-2025.
Indian operators continued to lead ARPU growth, supported by tariff increases introduced in 2025 and customers upgrading to higher-value 4G and 5G plans.
Reliance Jio increased ARPU by 1.3 percent from ₹206.2 in Q4-2025 to ₹208.8 in Q1-2026, reflecting continued monetization of its growing 5G subscriber base.
Bharti Airtel maintained the industry’s highest ARPU in India at around ₹262 in Q1-2026 against ₹259 in Q4-2025, driven by premium subscribers and strong 4G/5G adoption.
ARPU of Vodafone Idea rose 1 percent to ₹175 in Q1-2026 against ₹173 in Q4-2025.
Turkcell recorded one of the strongest sequential ARPU gains among major operators, helped by inflation-adjusted tariffs and digital service revenues. Turkcell achieved 4.1 percent growth in ARPU to TRY 130.6 in Q1-2026 against TRY 125.5 in Q4-2025.
The Omdia report highlights that insurance adoption differs across regions. Mature insurance markets in Europe and North America offer fewer expansion opportunities, while developing economies present significant growth potential because of lower insurance penetration. Telecom operators in these markets can leverage their large subscriber bases to introduce device, health, accident, and lifestyle insurance products while using AI to personalize offers, assess risk, improve claims processing, and increase customer adoption.
Nordic operators including Telia, Telenor, and Waoo have already demonstrated how cybersecurity insurance can become a valuable premium service. Their offerings combine cybersecurity software, fraud insurance, legal assistance, and digital protection, either as standalone add-ons or integrated into premium mobile and broadband plans.
Omdia notes that broadband and mobile operators have become preferred distribution channels for consumer cybersecurity services because they possess customer relationships and network intelligence that traditional cybersecurity vendors cannot easily replicate.
AI is expected to further strengthen these offerings by making cybersecurity and insurance services more relevant, personalized, and attractive, increasing customers’ willingness to pay for premium protection packages.
Developing markets are also witnessing growing demand for device insurance. Telecom operators such as Vivo in Brazil and Turkcell in Turkey have reported strong uptake of operator-branded device protection products.
Turkcell has expanded beyond handset protection by introducing accident and health insurance packages bundled with practical lifestyle benefits such as air-conditioner and boiler maintenance as well as complimentary car washes. These additional benefits function similarly to loyalty programs, increasing customer engagement and long-term service stickiness.
East Asian telecom operators are demonstrating how loyalty ecosystems can drive insurance adoption. Hong Kong’s HKT rewards customers with one Clubpoint for every HK$1 spent on insurance products, with rebates reportedly reaching up to 20 percent of an insurance plan’s premium over its lifetime.
In South Korea, KT enables 5G subscribers to convert up to 4,500 loyalty points per month into credits for device insurance, encouraging greater use of both telecom and insurance services.
Omdia concludes that cybersecurity should become a core component of every telecom operator’s service portfolio rather than a standalone commodity. Operators, particularly in emerging markets, should prioritize device insurance and AI-enabled protection services while enriching insurance packages with loyalty rewards, smart home features, and lifestyle benefits. Combining AI, customer data, cybersecurity, and value-added insurance services offers telecom companies a scalable path to diversify revenue beyond connectivity while strengthening customer loyalty and increasing long-term ARPU.
BABURAJAN KIZHAKEDATH
