Jio needs two tariff hikes to close Arpu gap with Airtel

Reliance Jio, India’s largest telecom operator by market share, would require two tariff hikes in the range of 15-20% over the next three years to close the gap with peer Bharti Airtel on the average revenue per user (Arpu)-level, according to analysts.

Analysts expect Jio’s Arpu to touch Rs 235 by FY27 on the back of tariff hikes and improving subscriber mix. On the other hand, Airtel’s Arpu is expected to be at Rs 286 in the next three years.

The same assumes significance in the sense that despite reporting the January-March quarter earnings in line with analysts’ estimates, Jio’s Arpu at Rs 182 has been flat sequentially for the last three quarters.