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Reliance Jio to maintain ARPU lead over Airtel, Vodafone Idea

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MUMBAI: Indian telecom company, Reliance Jio, is most likely to maintain its lead on average revenue per user (ARPU) over its rivals Bharti Airtel and Vodafone Idea. The telco’s strategy in the market has paid off well by selectively choosing an inordinate share of 4G smartphone users and continuing to attract them with reasonable high-end voice and data offers.

However, on Wednesday Jio posted a fall in its ARPU to Rs 131.7 for the July-September period from Rs 134.50 in April-June and from Rs 156 a year back. This was the third straight quarterly dip in ARPU for the telco but still anticipated to fare better than Bharti Airtel and Vodafone Idea, which stands with an ARPU at Rs 96 each.
For the time being, Reliance Jio exhibits an average 35 per cent more ARPU than its rivals, Airtel and Vodafone Idea.

Speaking to Economic Times, Bharti Airtel former CEO Sanjay Kapoor said, “While Jio’s strategy was centred on garnering and retaining high-paying subscribers, its rivals dominated the lower paying subscriber markets”.

Further explaining, “Incumbents, on the other hand, have a reasonably large number of customers, in the featurephone segment, who are voice-only users and have extremely low ARPU of less than Rs 30,” added Kapoor.

And according to Kapoor, Jio is the current thought leader of the market and is likely to determine the future ARPU trends in the Indian telecom market.

KPMG head of technology media and telecom Mritunjay Kapur explained that Jio has been trying to maintain its ARPU and most probably will continue to have ARPU higher than the current industry average based on its voice, data and media & entertainment strategy.

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