Reliance Jio might not raise tariffs before Jio GigaFiber service launch: Report

NEW DELHI: Though the stress on its average revenue per user (ARPU) figure and a marginal drop in subscribers are likely to put pressure on Reliance Jio’s current tariffs, the company may not raise tariffs before one of its key services — Fibre-to-The-Home (FTTH) — is rolled out as expected in the fourth quarter of the current fiscal, according to SBI Caps.

“Once the fiber usage charges start getting reflected in network opex (operational expenditure), pressure on margins is likely for Jio and maybe the time when Jio may revisit mobile tariffs. To sum up, tariff increase at the earliest is not seen before Jio’s FTTH roll-out (not before 4QFY20e)”, an SBI Caps report said.