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Reliance Jio Loses 10.9 Million Users After Tariff Hike
Reliance Jio, one of India’s leading telecom operators, experienced a significant user loss of over 10.9 million in the second quarter, following a recent increase in recharge plan prices. The company raised its tariff rates, which resulted in a noticeable decline in its customer base. Despite this setback, Jio appears untroubled by the exodus, as its financial performance continues to improve.
ARPU and Profit Continue to Rise
Jio’s Average Revenue Per User (ARPU), a key performance indicator in the telecom industry, increased from ₹181.7 to ₹195.1 during the quarter. This rise in ARPU suggests that while the user base shrank, those who remained are generating higher revenue for the company. Alongside this, Jio reported a net profit of ₹6,536 crore, indicating that the company’s overall financial health remains strong despite the loss of subscribers.
Surge in 5G Subscribers
One of the bright spots for Reliance Jio has been the growth in its 5G subscribers. The number of users utilizing Jio’s 5G services surged from 130 million to 147 million, underscoring the company’s successful expansion of its next-gen network. The continued increase in 5G adoption points to Jio’s focus on advanced technology to retain and attract a more high-value customer base.
Although Jio saw a dip in its overall user base due to higher tariffs, the company’s focus on profitability and 5G expansion seems to be paying off, positioning it well for future growth in India’s competitive telecom market.
