Is Reliance Jio going to increase mobile fares in recent times?
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Is Reliance Jio going to increase mobile fares in recent times?Reliance Jio going to increase mobile fares in recent times
Is Reliance Jio going to increase mobile fares in recent times? Will people who burn Reliance jio in their phone in the coming days have to spend more money to recharge every month? This question is arising because recently many analysts have worried about the light quarterly results of Reliance. have made clear.
These analysts feel that if Reliance does not increase the fares of Jio mobile, then it will be difficult for the company to increase its earnings. In the fiercely competitive telecom business, Jio is already competing with Indian Airtel. A problem is also arising that it does not have customers shifting from 2G to 4G and this may affect the average revenue per users i.e. ARPU of the company.
In the telecom industry, ARPU shows the earnings of companies. Actually, the possibility of increasing the tariff of Reliance jio has also arisen because the company’s expenses have increased rapidly in recent times. It includes depreciation and amortization, the salary of employees. And there has been a sharp increase in the expenditure on promotion. However, the analyst feels that after the arrival of 5G, there will be an increase in data consumption and this may also increase the ARPU of the company. ICICI Securities said in its report. Due to the increase in cost Jio’s EBITDA margin has come down to 51%. Network opex has increased by 5% on a quarterly basis to Rs 7200 crore.
In the first half of the current fiscal, the repayment of lease liability for the company has also increased by Rs 2000 crore. According to Goldman Sachs, the revenue market share of Jio in the September quarter has been flat at 43 percent. Both the brokerage firms have given the possibility that the current In the third quarter of the fiscal, Jio may have to resort to a tariff hike.
IIFL has said that due to the upgrade from 2G to 4G, the benefit that Indian Airtel had in ARPU is not the same in the case of jio. Jio has been a complete 4G provider and now JIO has 5G in five cities. In contrast, AIRTEL may be providing 4G services in a big way. But it is still providing 2G service. IIFL has estimated that Jio’s blend ie cellular and broadband quarter, ARPU 2022-23 180, will increase to Rs 204 in 2023-24 and Rs 222 in 2024-25. The company’s ARPU in the first quarter of the current fiscal was Rs 175.7, which has increased slightly to Rs 177.2 in the second quarter. Overall, Jio has the challenge to increase its revenue, and the only way to increase it is to increase the burden of tariffs on customers.
