Will Jio See a Sudden ARPU Boost with 5G Monetisation

will jio see a sudden arpu boost

Reliance Jio, along with the other telcos in India, are yet to monetise 5G via mobile customers. While one layer of monetising 5G with the FWA (Fixed-Wireless Access) has started, the major monetising via mobile is yet to be seen. Telcos have made it such that users who are recharging with the 2GB daily data plans will only get 5G in India. While this drives up their ARPU (average revenue per user) in a marginal way, it isn’t going to justify their investments. The moment telcos start monetising 5G, i.e., charge separately for it, that is when they will see a major boost in the ARPU.

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At the moment, the telcos are still waiting for the market to become more mature. Jio has spread its 5G network across India, and is currently optimising it for a better consistency and reach. Airtel is also doing the same, with plans to upgrade new sites to 5G as and when there are more 5G devices in the network.

Jio’s ARPU went up post the tariff hikes. At the end of FY25, Jio’s ARPU stood at Rs 206.2. Jio’s 5G user base touched 191 million during the same period. With the growing number of 5G users, once Jio starts charging separately for 5G, the company will get a major boost in its ARPU. Jio has the largest 5G user base. Thus, when a signficant percentage of its 5G users start paying additional for 5G in the future, Jio will definitely see better margins and its ARPU will get an uptick.