Reliance Jio won’t Raise Tariffs, even for 5G Services, as Telcos Plot Price Hike

As the world is moving towards 5G technology, several telecom operators in India are planning to raise tariffs. But, Reliance Jio, the Mukesh Ambani led telecom giant, seems to choose a divergent path.

The company has recently made it clear that it aims to continue with its competitive pricing strategies, even with the rollout of 5G services, according to a report in the Times of India.

Reliance Jio's Strategy

The report noted that the company's prime objective is to provide 'affordable access' to a broad user base, which also includes about 240 million subscribers of Airtel, Vodafone Idea, and BSNL MTNL, who are still dependent on 2G network services.

Mathew Oommen, the President of Jio, has expressed that their strategy does not lie in significant tariff increases. Instead, their primary focus is on customer acquisition, particularly as users transition towards data plans with a higher internet usage component.

Oommen further emphasized on the telecom industry's responsibility towards promoting digital inclusivity. Over 200 million mobile consumers who lack a satisfactory internet experience due to their 2G connectivity are the prime target for this digital shift.

Hence, a cost-effective approach can transform the telecom sector into a '2G mukt' one, providing digital empowerment to all its users.

Reliance Jio's Financial Report: 12% YoY Net Profit Growth in Q2

On October 27, Reliance Jio announced a standalone net profit of Rs 5,058 crore for the quarter ending in September. This indicates a 12.10 per cent year on year growth.

The company credits the increase to the higher revenue generated from its operations, which reached Rs 24,750 crore, showing a 9.89 per cent YoY growth. Furthermore, the company's average revenue per user (ARPU) per month also showed an increase, rising by 2.5 per cent YoY to reach Rs 181.7.

Conclusion

In conclusion, Reliance Jio's strategic moves are evident in its decision not to raise tariffs for its 5G services, focusing on customer acquisition and digital inclusion.

Furthermore, the company's solid financial results underscore its successful business model. As the Indian telecom industry prepares to enter the 5G era, both consumers and competitors will be keeping an eye on Jio's next moves.

Source