NEW DELHI: Reliance Jio has announced that it will not raise consumer tariffs, even when 5G is introduced. The company will continue to prioritize “affordable accessibility” in order to target over 240 million subscribers of Airtel, Vodafone Idea, and BSNL/MTNL who still use 2G networks.
Mathew Oommen, president of Jio, stated that the company does not plan to significantly increase tariffs, but instead, it will focus on acquiring more customers as people switch to data-centric plans. He emphasized that this is the vision of Reliance Industries chairman Mukesh Ambani and Jio chairman Akash Ambani.
Oommen further added, “As an industry, we owe it to the consumers to provide inclusive access. There are still more than 200 million mobile users who do not have a satisfactory experience with 2G, and it is our responsibility to empower them digitally. The only way to make the industry free from 2G is by offering affordable accessibility. We want all Indians to have access to data and deliver a superior customer experience.”
Jio’s average revenue per user (ARPU) was Rs 181.7 at the end of the second quarter of this fiscal year, slightly higher compared to the previous year. In contrast, rivals Airtel and Vodafone Idea have been advocating for tariff hikes to improve their own ARPU and support the high capital expenditure required for 5G network expansion.
Bharti Airtel CEO Gopal Vittal stated that the industry needs greater financial health and the ARPU should reach a sustainable level of Rs 300. Airtel’s ARPU was Rs 200 at the end of the first fiscal year, while Vodafone Idea’s ARPU stood at Rs 142 at the end of the second quarter.
