Jio may find it hard to boost revenue without tariff hikes and 4G upgrades: Analysts

Reliance Jio Infocomm’s modest show in fiscal Q2 highlights challenges in boosting revenue in the absence of tariff hikes, especially as it does not have subscribers upgrading to 4G from 2G like rival Bharti Airtel, which could weigh on average revenue per user (ARPU) growth, say analysts.

A sharp rise in expenses, including payouts towards network costs, depreciation & amortisation (D&A) and employee and selling costs, also dragged the telecom market leader’s net profit in the July-September quarter. Experts, in fact, expect Jio’s D&A costs to increase once 5G spectrum amortisation starts over next few quarters.