Jio stands firm on maintaining the current prices of its tariff plans, despite other telecom companies considering raising the prices of their 5G tariff plans
Will 5G Plans See Price Increases? Not for Reliance Jio. The Mukesh Ambani-led company has explicitly stated that it will not raise the tariffs on its Jio 5G plans, even as other telecom companies like Vodafone and Airtel are contemplating price hikes.
According to a report by The Times of India, Jio is committed to maintaining competitive pricing as it introduces 5G services. The company’s primary objective is to provide “affordable accessibility” to a wide customer base, encompassing over 240 million subscribers from Airtel, Vodafone Idea, BSNL/MTNL, who are still using 2G networks. In simpler terms, Reliance Jio will keep its rates largely unchanged and will instead focus on attracting more customers as people transition to data-intensive internet plans, as stated by Mathew Oommen, President of Jio. This strategy aligns with the vision of Reliance Industries Chairman Mukesh Ambani and Jio Chairman Akash Ambani.
“As an industry, we owe it to ensure inclusiveness. More than 200 million mobile consumers still do not have the right experience with 2G, and it is the industry’s responsibility to provide them with digital empowerment. The only way to make the telecom industry ‘2G-free’ is by offering affordable accessibility,” Oommen emphasized, adding, “Let all Indians have access to data. We don’t want to deprive them of that. We aim to deliver a superior customer experience to all Indians.”
In essence, Reliance Jio is maintaining an aggressive stance in the telecom market by keeping prices competitive, enabling more people to access their services without a substantial price increase, and adapting to the evolving landscape of data-driven connectivity. In the last three quarters, Reliance Jio generated an average of approximately Rs 181.7 per user, showing a slight increase compared to the previous year. Average Revenue Per User (ARPU) serves as a vital metric for evaluating telecom companies, indicating the revenue generated from each customer.
Conversely, companies like Airtel and Vodafone Idea have been raising their prices, asserting the necessity to secure additional funds for expanding their 5G networks. Gopal Vittal, Airtel’s CEO, even articulated a goal of achieving an ARPU of Rs 300 for the telecom industry to attain financial stability. Currently, Airtel garners around Rs 200 per user, surpassing Jio in this aspect. However, Vodafone Idea faces challenges, as it only generates about Rs 142 per user, lagging behind its competitors.
