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Highlights
- Reliance Jio, India's largest telecom operator, recently introduced the Jio Prime membership for Rs 300.
- The major feature of this Prime membership is that people will be protected from price hikes.
- We have already talked about whether this will result in savings or not.
Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
Reliance Jio, India’s largest telecom operator, recently introduced the Jio Prime membership for Rs 300. The major feature of this Prime membership is that people will be protected from price hikes. We have already talked about whether this will result in savings or not. However, this does confirm, that a price hike, is around the corner for the people. Most likely in the September quarter itself. Jio said that if people purchase the Prime membership, they will not have to pay new higher tariffs until September 5, 2027. This means, that the next hike, could be right after September 5, 2026. Note that this is speculative, as the price hike has not been confirmed by Jio.
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Reliance Jio Needs Tariff Hike for an ARPU Boost
Reliance Jio reported an average revenue per user (ARPU) of Rs 215.6 for Q1 FY27. This was a small up tick from Rs 214 in the previous quarter. Jio needs the tariff hike, clearly. Without a price hike, Jio will find it difficult to boost its ARPU just with higher data consumption. The telco would require a hike of about 15-20%, to make a difference on its ARPU.
Even with the Jio Prime membership, Jio will be able to boost its revenues in a single quarter. This will also lead to an uptick in ARPU. Since people will be paying Rs 300 extra during the quarter. Jio, may or may not hike the tariffs in this quarter. But it is definitely going to happen sometime in the near future.
