Jio vs Airtel ARPU: Despite being ahead in terms of users, Jio lags behind Airtel in the ARPU race. Despite having approximately 50 million fewer users, Airtel's ARPU is higher than Jio's.
Jio vs Airtel ARPU: Airtel leads in terms of ARPU
Jio vs Airtel ARPU: Jio and Airtel are the two largest telecom companies in the country, and there's a fierce competition between them. Jio is the largest company in terms of user numbers, while Airtel leads in revenue per user. Latest financial results show that despite having approximately 50 million fewer users than Jio, Airtel has a higher average revenue per user (ARPU). Let's explore what ARPU is, why it's important, and how Airtel excels in this regard.
What is ARPU?
ARPU is a closely monitored indicator in the telecom sector. It indicates how much revenue a company generates per user each month. A higher ARPU means that its customers are spending more on premium plans, increased data usage, and other value-added services. Even a small increase in ARPU can significantly boost a company's revenue. Looking at the companies, Jio's ARPU is ₹215.6, up from ₹208.08 a year ago. In comparison, Airtel's ARPU is ₹257. This means Airtel is earning ₹41.4 (approximately 19.2 percent) more per customer per month than Jio.
How many users does which company have?
Jio is India's largest telecom company with 533 million users. Of these, 285 million are 5G users. Airtel, on the other hand, has 483 million users. This means that despite having approximately 50 million fewer users, its ARPU is higher than Jio's. Based on ARPU and user base, Jio generates revenue of ₹11,498 crore per month, while Airtel generates revenue of ₹12,434 crore.
Why is Airtel's ARPU high?
According to reports, Airtel has a large number of premium users, and postpaid subscribers account for a significant portion of its user base. Similarly, the company's more expensive plans are also helping it generate more revenue. It is reported that Airtel has developed a strategy to increase customer quality and spending per user, rather than focusing solely on increasing user numbers. Jio, on the other hand, is investing in other digital services like cloud computing and fixed broadband, while also expanding its user base. The company says that promotional schemes for fixed broadband have had a slight impact on ARPU.
