In a remarkable feat, Reliance Jio, India’s leading telecom operator, has surpassed China Mobile to become the world’s largest mobile operator in terms of data traffic consumption, according to data released by the global analytics firm Tefficient. During the January-March quarter, the total traffic on the Jio network reached an astonishing 40.9 Exabytes, surpassing China Mobile’s 38 Exabytes.
Notably, Jio, the telecom arm of Reliance Industries Ltd (RIL), also boasts the world’s second-largest 5G subscriber base at 108 million. More than 28% of its total wireless data traffic is now consumed by 5G users, as revealed by the company in its analyst presentation on Monday.
Analysts anticipate Jio’s continued market share gains, projecting the operator to reach 490-500 million subscribers by FY25. With the 5G rollout completed, analysts expect Jio’s focus to shift towards 5G monetization, capitalizing on the vast potential of next-generation networks.
Jio’s total subscriber base expanded to an impressive 481 million in the fourth quarter of FY24, with net subscriber additions of 10.9 million during the same period. In comparison, Airtel has 345.6 million subscribers, while Vodafone Idea’s subscriber base stands at 215 million.
This remarkable achievement underscores Jio’s dominance in the Indian telecom market and its ability to attract and retain customers through its innovative offerings and expansive network infrastructure. As the 5G era unfolds, Jio’s position as the world’s largest mobile operator in data traffic consumption positions it as a formidable force in the industry.
Bernstein mentioned in a note, “We build an 11%/12% tariff hike for Reliance Jio in FY25/FY26. This is a higher increase than the 8% CAGR across the last 3 years. We believe an earlier or a higher tariff hike can be a significant driver of near-term stock performance.”
“Any certain timeline (currently expected in 2025) on the listing of the Jio IPO will also be a key catalyst for the stock. The increase of ARPU by Rs 10 will expand earnings by 4-5%. ARPU for Jio to increase by ~30% from FY23-26,” it added.
According to Jefferies, a leading global investment bank, Reliance Jio’s ability to increase its Average Revenue Per User (ARPU) may be constrained due to the current strategy of offering 5G services free of charge. The firm’s analysis suggests that with 5G being provided at no additional cost, there is limited room for Jio’s ARPU to expand without implementing tariff hikes. “We raise our ARPU estimates by 1-2% and expect ARPUs to rise at 9% CAGR over FY24-27 to Rs235 by FY27, led by a 20% tariff hike in 2QFY25 and 10% in 2QFY27,” as quoted in the statement.
