- Airtel’s ARPU is higher than Jio, despite having fewer subscribers.
- ARPU represents revenue per user, Airtel ₹257, Jio ₹215.6.
- Premium customers, postpaid plans the reason for Airtel’s ARPU growth.
Jio vs Airtel ARPU: Jio and Airtel are the two largest telecom companies in the country and there is a fierce competition between the two. If we look at the number of users, Jio is the largest company, whereas Airtel is at number one in terms of earnings from each user. Latest financial results show that despite having approximately 5 crore users less than Jio, Airtel has higher average revenue per user (ARPU). Let us know what ARPU is, why it is important and how Airtel is ahead in this matter.
What is ARPU?
ARPU is monitored the most in the telecom sector. This shows how much revenue a telecom company is earning from each of its users every month. Higher ARPU means that the customers of that company are spending more money for premium plans, more data usage and other value-added services. Even if there is a slight increase in ARPU, it can significantly increase the company’s income. Now talking about companies, Jio’s ARPU is Rs 215.6. A year ago it was Rs 208.08. In comparison, ARPU of Airtel is Rs 257. That means Airtel is earning Rs 41.4 (about 19.2 percent) more from each of its customers every month than Jio.
How many users of which company?
Jio is India’s largest telecom company with 533 million users. Of these, there are 28.5 crore 5G users. On the other hand, the number of Airtel users is 48.3 crore. That means, despite having less users by about 5 crores, its ARPU is more than Jio. On the basis of ARPU and user base, Jio generates revenue of Rs 11,498 crore every month, whereas Airtel is earning revenue of Rs 12,434 crore accordingly.
Why is Airtel’s ARPU high?
According to reports, Airtel has a high number of premium users and postpaid subscribers form a major share in its user base. Similarly, the expensive plans of the company are also helping it in generating more revenue. It is being told that instead of focusing only on increasing the number of users, Airtel has made a strategy to increase customer quality and expenditure on each user. On the other hand, along with increasing its users, Jio is also investing in other digital services like cloud computing and fixed broadband. The company says that the promotional schemes being run for fixed broadband have had some impact on ARPU.
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