Reliance Jio is not much concerned with the Average Revenue per User (ARPU) metric, referring to it as a "misnomer." India's largest telecom operator also anticipates that Bharat Sanchar Nigam Limited (BSNL) subscribers will return to its services, according to a report by ET, citing a senior Jio executive. Jio recently reported an ARPU of Rs 195.10 for the quarter ending September 30, 2024, following a recent tariff hike.
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Jio Dismisses ARPU as a Misnomer
ARPU, or Average Revenue Per User, is a financial metric used primarily in the telecommunications industry to measure the average amount of revenue generated per customer over a specific period.
The telco also lost 10.9 million subscribers, mainly to state-run rival BSNL, which did not raise its tariffs. This marked the first time in three years that Jio reported a decline in its subscriber base, the report noted.
“For us, ARPU is a misnomer. We think there is no use in counting ARPU. Increasing margins is a key norm,” the report quoted a senior Jio executive as saying. The executive also noted that the telco during its 8-year incumbency never set eyes on ARPU.
"We have consistently said sustainable revenue growth but at the same point in time ensuring you have to give service to everyone," the executive added.
The executive further explained that BSNL's tariff was not increased, and the state-owned telco claimed to be offering a 50 percent discount, and promoted through social platforms, which helped it latch new customers onto its network, the report added.
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Subscribers Returning to Jio
Reportedly, BSNL subscribers, according to the executive, have started returning to the Jio network, realising the absence of 4G data services.
Once a customer ports in a connection, they must wait 90 days before switching to a different carrier, per MNP (Mobile Number Portability) guidelines.
The Jio executive also mentioned that the telecom company had kept ARPU at Rs 123, offering unlimited voice and data services. "So, we have never made statements that ARPU should go up or the tariff should increase every month," the report said.
"On the back of affordable tariffs, Jio has become the world's largest mobile data operator by surpassing China Mobile."
