Reliance Jio ARPU Will Increase After Introduction of Bundled IUC Minutes Plans: Analysts

The new introduction of the IUC based recharge plans for Reliance Jio subscribers is likely to be a game-changer for the company. Although on a first look, it could seem as if the introduction of IUC based recharges could mean a loss of subscribers for the Mukesh Ambani led telecom operator, but on the business side of things, the company is surely going to see an increase in revenue. It would only save on its expenses which was making as IUC payouts, but it would also up the average revenue per user (ARPU) of the company. As per an ET Telecom report, analysts have pointed out that the introduction of the simple tariff plans with extra IUC minutes will help the telecom operator in increasing its ARPU by a 10%. This would happen through the fourth quarter of the fiscal year, as per the analysts.

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Reliance Jio Withdraws Low-Value Prepaid Plans

Also, this won’t be the only way, Reliance Jio would be improving its ARPU, but the analysts are of the thought that the telecom operator will keep on tweaking its prepaid plans to raise its floor pricing for better revenue. For example, Reliance Jio recently did away with two of its lowest-priced sachet packs of Rs 19 and Rs 52. This is a hint from Reliance Jio about moving to higher-priced plans, and a path towards increased revenue and ARPU as it continues to make changes in its prepaid plans. There are also expectations in the sector that Reliance Jio could make more changes to its prepaid plans in this direction as it completes the acquisition of 400 million customers.