Focus on subscriber additions could be hurting Jio’s ARPU

Kolkata: Reliance Jio’s rapid subscriber addition is becoming a drag on its average revenue per user (ARPU), a key performance metric. This was underlined by a stagnant ARPU in FYQ3 as the telco acquired droves of low-value users who bought the affordable JioBharat phone while its unlimited data offerings to 5G users eroded 4G top-up sales, analysts said.

They added that Jio needs to hike overall tariffs quickly, withdraw its unlimited 5G data plans and price 5G services above 4G rates to boost ARPU.

To be sure, analysts acknowledged that Jio’s swift countrywide 5G rollout would help it grab more high-value customers and market share from cash-strapped Vodafone Idea (Vi), which is yet to roll out the next-gen mobile broadband network.