Reliance Jio Infocomm's average revenue per user (ARPU) is likely to fall below that of its primary competitor Bharti Airtel's for the first time, reports Economic Times.
According to the report, Jio's ARPU for the April - June quarter may drop to Rs 124, less than Airtel's Rs 127. Jio's ARPU has been on a downward trend for the past six quarters, with the Jio VoLTE feature phone reportedly the reason.
The decline is mostly attributed to the additions of users generating monthly ARPU of Rs 99. “Jio’s ARPU will decline 2 per cent sequentially to Rs 124 due to a mix change,” estimated Axis Capital. From a peak of Rs 156 in the July - September quarter of FY 2018, Jio's APRU has declined steadily to Rs 126 over the past six months.
However, Jio is expected to notch up strong net subscribers with Axis Bank and HSBC estimating additions of 25 million and 23 million respectively. The strong numbers however, are lower than the increase of 27 million subscribers in the March quarter.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 999/year is the best way you can support our efforts.