Reliance Jio’s  falling  Arpu  may be good news for sector

New Delhi: Reliance Jio Infocomm Ltd, India’s most profitable telecom operator, has witnessed a continuous drop in its average monthly billings over the past five quarters and although it still outperforms rivals on this metric, analysts say the slide may finally put pressure on the company to raise tariffs.

Any increase in tariffs would spell good news for the telecom industry which has seen operators shut shop or get acquired after a bruising price war started with Jio’s entry in September 2016.

From ₹154 in the December 2017 quarter, Jio’s average revenue per user (Arpu) fell 15.6% to ₹130 in the same quarter in 2018 and to ₹126.2 in the March 2019 quarter. Arpu is the total revenue of the operator divided by the number of users or connections on its network.

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