Jio’s revenue per user may decline even as Voda Idea, Bharti Airtel gain a bit

KOLKATA: Reliance Jio’s average revenue per user (ARPU), a key performance metric, is likely to continue falling for the seventh successive quarter as the Mukesh Ambani-led telco is still largely adding low-value customers, analysts said.

Axis Capital estimates Jio’s ARPU to decline 3% sequentially to Rs 118 in the September quarter, driven by additions of JioPhone users generating modest monthly ARPU of Rs 99 and cash backs on digital recharges.

In contrast, incumbent telcos, Bharti Airtel and Vodafone Idea, which implemented minimum recharge plans last year, are estimated to report modest ARPU gains on quarter to Rs 130 and Rs 109, respectively, helped by the exit of non transacting customers.

From a peak of Rs 156 in the September quarter of FY18, Jio’s ARPU has shrunk steadily to Rs 122 over the past seven quarters.