The strategy is to protract the pressure on rivals such as Bharti Airtel and Vodafone Idea. These big names have suffered a major loss in revenue and profits since the launch of Jio by India’s richest man, Reliance owner Mukesh Ambani.
After quarterly results, in a news briefing on Friday, Jio’s head of strategy, Anshuman Thakur, said, “We have been telling you from the beginning, the priority for us today is customers.”
After its launch in September 2016, Jio has managed to add 331.3 million subscribers by offering amazing cut-price data plans and free voice calls, along with free music, movies and more. It’s launched has caused an avalanche in India’s telecom market.
Jio caused such a competition which sent the average revenue per user (ARPU) tumbling. ARPU – a key metric for telecoms companies. Jio’s ARPU for the three months to June 30 was at Rs. 122, a 9.3 percent decline from a year ago. Jio added 24.5 million subscribers in the quarter. The subscribers consume an average of 11.4 gigabytes of data each month.
Thakur said, “We are not in this ARPU game. The management’s priority is to ensure that more subscribers latch on to its network and use its services, thereby creating greater “long-term value. We’re quite happy with these key performance indicators.”
Jio recently beat Bharti Airtel to become India’s second-biggest telecoms operator behind Vodafone Idea.
Some analysts predict that Jio would start raising its tariffs as soon as a critical mass of subscribers is reached.
Reliance also announced on Friday that Jio has sold its tower assets via an investment trust to Canada’s Brookfield Asset Management for Rs. 25,000 crores.