What Akash Ambani said on Jio tariff hikes ahead of record IPO launch

Akash Ambani said Jio has the ability to increase mobile prices, but it does not want tariff hikes to be its main growth strategy. The company wants customers to feel they are receiving more value, rather than simply paying more for each gigabyte of data. This matters because Indian telecom operators are seeking higher revenue and profitability while Jio has built its customer base through affordable plans.

Jio’s approach is to add services across mobility, home broadband, enterprise solutions, and digital products. Customers could then spend more because they use a broader bundle of services, not only because the price of mobile data rises. Ambani said Jio wants to “extract value” competitors have left untapped.

Tariffs remain one growth lever, and Jio’s ARPU is below Bharti Airtel’s. However, Ambani identified several other opportunities. Jio expects technology, new services, and operating efficiencies to support revenue growth and improve its EBITDA margin beyond the current 53%.

Jio plans to expand revenue through several businesses beyond mobile-data charges. These include home broadband, enterprise services, and digital products. This matters because the company can increase customer spending by adding useful services while keeping its affordable connectivity positioning. Ambani described mobility, home broadband, and enterprise services as long-term growth opportunities.

Home broadband is a major example. Jio says its UBR technology can connect homes wirelessly without conventional last-mile fibre in every location. The company also expects enterprise and digital services to create additional revenue from its existing network and customer base. These offerings give Jio more ways to monetize its infrastructure.

Jio expects growth across mobile, home, enterprise, and digital services in coming years. It is also pursuing technology and operating efficiencies to improve profitability. Ambani said Jio’s EBITDA margin had risen from about 50% to 53% over three years, with further improvement possible as new services launch.

ARPU, or average revenue per user, measures how much revenue a telecom company earns per customer over a period. It matters because a larger ARPU can increase revenue even when the subscriber base stays broadly stable. For Jio, improving ARPU is important as the company expands services and seeks stronger profitability.

Jio’s mobile ARPU is around Rs 216, while Bharti Airtel’s is Rs 264. The difference suggests Jio has room to raise customer spending through higher tariffs, premium plans, or additional services. However, Ambani said Jio would first try to deliver more services and charge for the extra value customers receive.

ARPU is only one part of profitability. Jio also wants to improve margins through technology and operating efficiencies. Its EBITDA margin rose from about 50% to 53% during the past three years. New services outside licensed offerings could help that margin expand further.

Jio has built a huge customer base since its commercial launch in 2016. It now serves more than 530 million customers. That scale gives the company a large audience for mobile, home broadband, enterprise, and digital services. It also means small increases in revenue per user could have a meaningful effect across the business.

Jio’s mobile ARPU is around Rs 216. Bharti Airtel’s is Rs 264. ARPU is the average revenue earned from each user, so the comparison shows that Airtel currently generates more mobile revenue per customer. Jio could narrow that gap through tariffs, premium plans, or additional services.

Ambani said Jio does not want to depend primarily on tariff increases. Instead, it aims to offer more services and charge for added value. Its large customer base, combined with higher ARPU and new services, could support future revenue growth and stronger profitability.

Home broadband, enterprise solutions, and digital products give Jio additional ways to earn from its network and customer relationships. This matters because the company can grow revenue without depending mainly on higher mobile-data prices. A wider service mix can also make Jio less reliant on a single source of income.

For example, Jio’s UBR technology can connect homes wirelessly and expand its potential home-broadband market from 40 million to 100 million households. Enterprise and digital offerings can similarly add services around Jio’s existing mobility infrastructure. The mechanism is simple: more services create more opportunities to charge for value delivered to customers.

Jio said its EBITDA margin improved from about 50% to 53% over three years. Ambani expects further improvement as new services are introduced, including services outside licensed offerings. Technology and operating efficiencies could raise profitability, although the article does not quantify future margins.

UBR is a proprietary technology Jio operates on unlicensed spectrum for home connectivity. It allows Jio to connect homes wirelessly instead of requiring conventional last-mile fibre infrastructure in every location. This matters because the technology can make broadband available to many more households than a fibre-only approach.

Jio said UBR expanded its addressable home-connectivity market from 40 million households to 100 million. The key mechanism is wireless access. Jio can serve locations where installing conventional last-mile fibre would not be used or available under the stated model. The company says its network equipment rollout has already been completed.

Jio said it can provide home broadband within 48 hours of receiving a customer request. It also plans to take the technology overseas through partnerships with telecom operators. Rather than operate directly as an international telecom company, Jio prefers offering its complete technology stack to local partners.

Telecom businesses invest heavily in networks, so they need recurring revenue to cover infrastructure and operating costs. Relying on one income source, such as mobile-data tariffs, can limit growth and put pressure on affordability. Multiple revenue streams let a company earn from different customer needs while using the same broad network investment.

Pricing affects revenue per user, while network investment creates the capacity and reach for services. Jio invested in network infrastructure and says that investment now supports mobility, home broadband, enterprise solutions, and digital products. Additional services can raise customer spending without requiring every increase to come from a higher price per gigabyte.

Jio’s ARPU is about Rs 216, below Bharti Airtel’s Rs 264, leaving room for improvement. At the same time, Jio’s EBITDA margin rose from about 50% to 53%. The company expects new services, technology, and operating efficiencies to support further revenue and margin growth.