Jio ARPU Increased Only Rs 1.2 in a Year

Reliance Jio, India’s largest telecom operator, saw an uptick of just Rs 1.2 in ARPU (average revenue per user) figure for an entire financial year. The telecom operator desperately needs a boost in ARPU. This is the reason why it went ahead with an increase in prices of prepaid plans. While Jio has been able to make a lot more money than its competitors, it has only been possible because of the scale at which the company is operating. In comparison, Bharti Airtel is a lot more ahead than Jio in the ARPU department. This is because of two reasons. The first one is that Airtel focuses on premium customers and the second one is that Airtel tries to sell more bundle services along with postpaid connections to customers. Jio is yet to compete with Airtel and Vodafone Idea in the postpaid segment head-to-head.

• Make Telecom Talk My Trusted Source
• 
• 

Read More – Reliance Jio Posts Rs 5693 Crore Net Profit in Q1 FY25: All Details

It is worth noting here that Jio has not seen an increase in ARPU for the past quarters. This is the reason why it was the first one to go ahead with the price hike.

However, one should not forget that the effect of price hike won’t be visible right away. Telecom operators will take at least 2 to 3 quarters to see the effect of the tariff hikes on the ARPU levels. For Airtel, the ARPU is expected to reach near Rs 240 or Rs 250 while for Jio is expected to reach Rs 230 by the end of this financial year.