Reliance Jio Platforms forecasts India’s mobile broadband average revenue per user (ARPU) to increase to Rs 326.4 per month by fiscal year 2031, driven by rising data consumption, enhanced service offerings, and improving consumer income levels. This projection highlights significant growth potential as India’s telecom ARPU remains below global norms.
- Jio ARPU rises consistently, reaching Rs 214 by FY26
- ARPU growth driven by tariff hikes, 5G premiumisation, and bundled services
- Revenue per GB remains low compared to US and China
What happened
Jio Platforms reported in its draft red herring prospectus that India's mobile broadband average revenue per user (ARPU) stood at Rs 214 in fiscal year 2026 and is expected to rise to Rs 326.4 by fiscal year 2031. This forecast is established on the foundation of increasing data consumption, tariff restructurings, and broader adoption of digital services integrated with telecom plans.
The company observed that the telecom sector in India has experienced consistent ARPU growth in recent years, propelled by industry-wide tariff increases including those implemented in the second quarter of FY25. These hikes, alongside 5G network rollouts and enhanced customer service propositions, contributed to an improved willingness among consumers to pay for higher value digital connectivity and services.
Why it matters
Despite these gains, Jio highlighted that India’s mobile ARPU is still significantly lower than global benchmarks, indicating substantial upside potential. The growth in ARPU is important as it affects revenue generation capacity amid increasing capital investments in network expansion and cutting-edge technologies such as 5G.
However, Jio also noted that the tariff increases that drove ARPU growth came with trade-offs, including higher customer churn and reduced subscriber additions in FY25. Additionally, revenue realization per gigabyte remains very low in India compared to countries like the US and China, posing ongoing challenges in monetizing the surge in data traffic effectively.
What to watch next
Moving forward, key factors to monitor include how Jio balances tariff rationalizations with customer retention, as well as the extent to which bundled plans integrating OTT entertainment, cloud services, and AI-driven products can drive ARPU improvements. These offerings could deepen user engagement and expand digital ecosystem revenues.
Furthermore, regulatory developments and market readiness for technologies such as network slicing—where Jio has expressed preparedness—will be relevant to sustaining competitive differentiation. The company’s use of IPO proceeds to reduce debt could also enable more strategic investments, supporting its growth ambitions in India’s fast-evolving telecom sector.