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the most recent information Jio Needs Tariff Increases After Flat Growth in Q3 and Q4 to Improve ARPU

Reliance Jio’s ARPU has fluctuated over the last two quarters.

Announced.Since Jio and Airtel are the only providers of 5G network services and offer them at no additional cost to their 4G customers, they have an edge over Vi in this circumstance. As a result, Jio’s ARPU won’t exceed Rs 200. Jio doesn’t care about retaining the top ARPU in the market; instead, it wants to be the leader in terms of size.

HIGHLIGHTS

  • For the past two quarters, Reliance Jio hasn’t been doing all that well in terms of average revenue per user (ARPU).
  • Jio’s ARPU in Q2 FY23 was Rs 177.2.
  • The next quarter, it increased to Rs 178.2, and in Q4 FY23, it reached Rs 178.8.

Announced. Reliance For the past two quarters, Jio hasn’t been doing all that well in terms of average revenue per user (ARPU). Jio’s ARPU in Q2 FY23 was Rs 177.2. The next quarter, it increased to Rs 178.2, and in Q4 FY23, it reached Rs 178.8. While sales and net profit have increased, the telco must increase ARPU as well if it wants to maximize revenues. Jio will need to raise its prepaid pricing to cover this. By withdrawing the base plan of Rs 99 from all circles and replacing it with the Rs 155 plan, Airtel has already taken the first step towards rate increases. Quite frankly, Jio must also act.

Actually, the delay of the price rises in this circumstance is mostly due to Vodafone Idea (Vi). Vi is aware that raising rates now would lead to an even greater rate of subscriber loss. In other words, the telco can no longer afford for paying customers to stop using its network. It won’t hike tariffs as a result. Jio and Airtel cannot fully implement their plans until they raise their rates since doing so might result in Vi acquiring their low-paying users.

Read More – Jio’s Q4 FY23 net profit was Rs. 4984 billion, while its ARPU was Rs. 178.8.

Announced.Since Jio and Airtel are the only providers of 5G network services and offer them at no additional cost to their 4G customers, they have an edge over Vi in this circumstance. As a result, Jio’s ARPU won’t exceed Rs 200. Jio doesn’t care about retaining the top ARPU in the market; instead, it wants to be the leader in terms of size. As a result, the telco rarely talks about ARPU or pricing hikes. It will need to maximize revenues in order to make sure that its 5G investment can be justified in the medium term.

The issue is that with cell phone prepaid packs right now, there isn’t much space for upselling. Jio may only do one extra cell phone sale.

What do you think?

Written by Shallu Srivastav

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