- Reliance Jio has stated that it intends to maintain competitive pricing strategies, even with the introduction of 5G services.
- The company aims to include over 240 million subscribers from Airtel, Vodafone Idea, and BSNL/MTNL, who still depend on 2G networks.
- On October 27, Reliance Jio announced a standalone net profit of Rs 5,058 crore for the quarter ending in September.
While all the telecom operators in India are planning to raise the tariffs, especially with their 5G services. Mukesh Ambani-led telecom giant has an unconventional approach to 5G services and is opting against raising tariffs.
According to the report from the Times of India, Reliance Jio has expressed its intention to uphold competitive pricing strategies, even in light of the introduction of 5G services. The company’s paramount objective is to provide “affordable access” to an extensive user base, encompassing over 240 million subscribers from Airtel, Vodafone Idea, and BSNL/MTNL, who are still reliant on 2G networks.
Reliance Jio’s Take on Price Hike
Mathew Oommen, the President of Jio, has articulated that the company’s strategy does not involve substantial tariff increases. Instead, their focus is directed towards customer acquisition, especially as individuals transition towards data plans with a heavier internet usage component.
“As an industry, it is our responsibility to promote inclusivity. Over 200 million or more mobile consumers are still deprived of a satisfactory internet experience with 2G connectivity, and the industry carries the responsibility of bestowing digital empowerment upon them. The sole means to transform the telecom sector into a ‘2G-mukt’ one is by providing cost-effective accessibility,” Oommen emphasised, while further adding, “We aspire to provide all Indians access to data without exclusion. Our aim is to deliver an enhanced customer experience for every individual across the nation.”
In essence, Reliance Jio is staying competitive in the telecom market by keeping prices affordable so more people can use their services without a hefty price increase. They’re also adapting to the changing world of data-driven connectivity.
On October 27, Reliance Jio announced a standalone net profit of Rs 5,058 crore for the quarter ending in September. This represents a 12.10 per cent year-on-year growth. It also increased by 4 per cent compared to the previous quarter, primarily due to higher revenue.
The revenue from its operations reached Rs 24,750 crore, showing a 9.89 per cent year-on-year increase. Compared to the previous quarter’s Rs 24,042 crore, it grew by 2.94 per cent sequentially, as reported by the company.
Furthermore, the company’s average revenue per user (ARPU) per month increased by 2.5 per cent year-on-year to reach Rs 181.7. In the previous quarter (Q2FY23), it was at Rs 177.2, and in the first quarter of the fiscal year 2024 (Q1FY24), it stood at Rs 180.5.