Jio surpasses China Mobile to become world's largest mobile operator
Reliance Jio has surpassed China Mobile to become the world's largest mobile operator by data traffic consumption. According to global analytics firm Tefficient, Jio's network registered a total traffic of 40.9 exabytes in the first quarter of this year, surpassing China Mobile's 38 exabytes (one exabyte is equal to one billion gigabytes). With over a quarter of its total wireless data traffic being used by 5G customers, Jio also holds the second-largest global 5G subscriber base at 108 million.
Jio's ARPU has been impacted by JioPhone users, unlimited plans
Despite its impressive data traffic statistics, Jio's average revenue per user (ARPU) has been impacted by the influx of JioBharat phone users and unlimited 5G promotional plans. However, industry experts predict a reversal in this trend following anticipated tariff increases post the general elections in June. They argue that Jio's rapid user growth and subsequent market share gains will positively influence revenue conversion once these tariff hikes are implemented.
Jio's AirFiber service sees robust demand across 6,000 towns
Jio's fixed wireless home broadband service, AirFiber, has seen robust demand across nearly 6,000 towns, leading to a record number of quarterly home connections. The average daily data usage of AirFiber subscribers is 13GB, which is 30% more than that of JioFiber subscribers. Despite these high figures, analysts note that Jio has yet to monetize its 5G services fully, keeping its ARPU static.
Jio's 5G availability has driven successful 5G migration: JP Morgan
JP Morgan highlighted in an analyst update that "Jio's impressive 5G availability has driven successful 5G migration at promotional unmetered prices." This strategy is significantly reducing 4G data top-ups and encouraging price-sensitive consumers to switch to daily plans offering 1.5GB data. However, nearly a third of Jio's network usage is currently being offered free of charge due to its unmetered 5G plans, affecting its ARPU.
Jio's ARPU remains unchanged at ₹182
By the end of fiscal year 2024, Jio's total subscriber base had grown from 449 million to 482 million, with an average monthly data consumption of 28.7GB per user. Despite this growth, its ARPU remained unchanged at ₹182 compared to ₹181 at the beginning of the year. In contrast, Bharti Airtel has been consistently increasing its revenue with ARPU rising from ₹200 to ₹211, despite slower subscriber growth and lower data usage.
