Are 5G plans poised for a price hike? Well, in the case of Reliance Jio, the answer is a resounding no. The company led by Mukesh Ambani has made it clear that they have no intentions of raising the tariffs for Jio’s 5G plans, even as other telecom giants like Vodafone and Airtel consider increasing their prices.
More About Reliance Jio Commitment and 5G Plans Price Hike
According to a report from TOI, Jio has affirmed its commitment to maintaining competitive pricing, even as they ventures into the realm of 5G services. Their primary objective is to provide “affordable accessibility” to a broad user base, which includes more than 240 million subscribers still utilizing 2G networks through Airtel, Vodafone Idea, and BSNL/MTNL.
To put it simply, Reliance Jio won’t be significantly upping its rates. Instead, their focus will be on attracting more customers as people transition to data-intensive internet plans. Mathew Oommen, the President of Jio, explained that this strategy aligns with the vision of both Reliance Industries Chairman Mukesh Ambani and Jio Chairman Akash Ambani.
“As an industry, we owe this to get inclusiveness. More than 200 million mobile consumers still do not have the right experience with 2G, and the onus is on the industry to give them digital empowerment. The only way to make the telecom industry 2G-free is by offering affordable accessibility,” Oommen stated, adding, “Let all Indians have access to data. We don’t deprive them of that. We want to deliver a superior customer experience for all Indians.”
In essence, Reliance Jio is staying aggressive in the telecom market by keeping prices competitive. This approach allows more people to access their services without facing a substantial price increase, all while adapting to the changing landscape of data-driven connectivity.
In the past three quarters, Reliance Jio has generated an average of about ₹181.7 per user. This figure represents a slight increase compared to the previous year. Average Revenue Per User (ARPU) serves as a performance indicator for telecom companies, revealing how much revenue they generate from each customer.
Conversely, companies like Airtel and Vodafone Idea have been raising their customer rates, citing the need for increased funds to invest in expanding their 5G networks. Airtel’s CEO, Gopal Vittal, has even stated their goal to raise the ARPU to ₹300 to ensure the financial health of the telecom industry. Airtel currently garners about ₹200 per user, surpassing Jio. However, Vodafone Idea faces struggles as they only collect approximately ₹142 per user, placing them at a disadvantage compared to their competitors.
