Jio’s Q4 revenue, Arpu may fall; subscriber addition saw a pickup

Reliance Jio Infocomm Ltd is expected to report a sequential decline in revenue for the March quarter, with key metrics such as average revenue per user (Arpu) likely to fall as much as Rs12-14, as operators scrapped interconnect usage charge (IUC), which contributes 7-8% in revenues across the industry, from 1 January.

The Mukesh Ambani-led telecom operator had clocked an Arpu of Rs151 during October-December, up from Rs145 a quarter ago. Arpu is the total revenue of the operator divided by the number of users or connections on its network.

“Arpu should see about 8% quarter-on-quarter moderation as IUC fell to zero from January 2021 (from six paise per minute) for all operators, impacting Jio’s Arpu by Rs12-14, and because of lower number of days during the quarter.