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India’s mobile broadband average revenue per user (ARPU) is expected to reach Rs 326.4 per month by FY31, driven by rising data consumption and increasing disposable income per capita, Reliance’s Jio Platforms told investors in its IPO filings.
According to Jio, India’s mobile ARPU remains below global benchmarks, leaving significant headroom for growth.
As of FY26, Jio Platforms’ mobile ARPU stood at Rs 214, compared with Airtel’s Rs 257.2 and Vodafone Idea’s Rs 174.
What has led to the increase in ARPU? From FY24 to FY26, Jio’s ARPU increased consistently due to a combination of factors:
- Industry-wide tariff increase;
- Higher consumer engagement on the platform;
- Customers upgrading to higher-data-usage plans, which offer more value through features such as unlimited 5G, access to OTT content on JioHotstar and other platforms, live sports events, micro dramas, and more.
Jio noted that India’s mobile broadband ARPU has shown a consistent increase in recent years, marking a significant shift in the industry’s trajectory toward data monetisation and sustainable pricing.
“The ARPU increase reflects industry-wide tariff hikes, including in the second quarter of FY2025, the 5G premiumisation effect, improving customer mix and improved product proposition. End users are responding positively to this enhanced value proposition, demonstrating a greater consumer willingness to spend on reliable digital connectivity, faster speeds and integrated services that enhance their digital lifestyles,” the telecom company said.
Why does Jio expect ARPU to rise further? Jio sees significant headroom for ARPU growth, driven by multiple factors:
(i) Periodic tariff rationalisation reflecting the improving value proposition and quality of services delivered to customers;
(ii) Increasing adoption of higher-value bundled plans that integrate digital connectivity with services such as OTT entertainment, cloud storage, cloud computing, and AI-based products; and
(iii) Growth in India’s per capita income.
However, Jio saw lower customer additions in FY25 following a tariff revision that increased ARPU.
While ARPU has increased, the revenue realisation per GB has gone down: As of Q3 FY26, revenue realisation per GB in India stood at just Rs 7.9, significantly lower than the USA’s Rs 239.8 and China’s Rs 17.5.
Higher ARPU may not translate to higher revenues: Jio said the tariff increases implemented in the second quarter of FY25 boosted ARPU but also resulted in higher customer churn and lower subscriber additions.
“In Q2 FY25, the company, along with other industry participants, implemented a tariff increase across prepaid and postpaid plans, which resulted in an increase in ARPU. However, this tariff increase also contributed to higher customer churn, leading to lower growth in our total customer base during FY25,” the company said.
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