Reliance Jio Expected to Continue Gaining Market Share as Rivals Lose Customers

One of the parameters that is being most looked at in the telecom industry these days is the Average Revenue Per User (ARPU). The ARPU has become a measure of how the company is performing in the industry, and all the telecom operators seem to be fighting over it by vying for the most share in the market. However, on paper Reliance Jio is the only profitable telecom operators, but the ARPU of the company seems to be declining quarter after quarter. As per an ET report, the Mukesh Ambani led telecom operator has witnessed the decline in ARPU for seven consecutive quarters, and the trend continues. This is mainly because the telecom operator has been adding low paying customers to its subscriber base, as it aspires for a massive goal of 500 million subscribers. A big chunk of these low paying customers are the Jio 4G feature phone, JioPhone, users,

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Reliance Jio ARPU Continues to Decline

According to Axis Capital, the ARPU of Reliance Jio is expected to fall further down to Rs 118, which is 3% lower than the current levels mainly driven by the JioPhone sales in the September quarter. On an average, the JioPhone users bring an ARPU of Rs 99 per month for Reliance Jio combined with cashbacks and digital recharges. To recall, in FY18 September, Reliance Jio used to boast of an ARPU of Rs 156 whereas, now the ARPU figures for Reliance Jio have shrunk down to Rs 122 over the quarters, consecutively falling. But, although the telecom operator seems to be witnessing declining ARPU, the profitability of the company remains the same.