‘Jio user additions to be strong, but per-user revenue a worry’

Kolkata: Telecom market leader Reliance Jio’s user additions are expected to be strong going forward, analysts said, though the dilution in average revenue per user (ARPU) is set to continue as its overall subscriber mix shifts towards the JioPhone, which attracts lower revenue generating customers.

Jio’s earnings before interest, tax, depreciation and amortization (Ebitda) margins will likely come under pressure due to higher network operating costs and higher license fees, they added.

The Reliance Industries-owned entity added over 14 million subscribers in the fiscal first quarter, but most were due to its recent cheaper offers on the JioPhone, weighing marginally on ARPU, which stood at Rs 138.4 compared to Rs 138.2 in the fourth quarter of the previous financial year.