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A few red marks on Jio’s Q2 report card: declining Arpu, pressure on key metrics ring warning bells

Reliance Jio Infocomm reported a year-on-year jump of 45% in second-quarter net profit, driven by strong subscriber additions. While the company’s strategy is focussed on customer acquisition, Jio must take measures to ensure that it also translates into higher Arpu.
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rishitejpal
21 Oct 2019 4 Mins Read 6 comments
A Reliance Jio store in Kolkata Getty Images
A Reliance Jio store in Kolkata
Reliance Jio continues to lead the subscription race in India’s telecom sector, signing up 24 million new users in Q2 FY20. On the back of customer additions at a brisk rate, the company on Friday reported a year-on-year jump of 45% in net profit. As of end September 2019, Jio has more than 355 million subscribers. At this rate,
the IUC till the time TRAI abolishes such charges and brings in the bill-and-keep or zero-termination charge regime. While the decision has invited a huge backlash from Jio’s customers and competition alike, it would be interesting to closely monitor the impact of Jio’s widely unpopular decision on its financials during the coming quarter. ( Graphics by Mohammad Arshad)
Reliance Jio continues to lead the subscription race in India’s telecom sector, signing up 24 million new users in Q2 FY20. On the back of customer additions at a brisk rate, the company on Friday reported a year-on-year jump of 45% in net profit. As of end September 2019, Jio has more than 355 million subscribers. At this rate, the IUC till the time TRAI abolishes such charges and brings in the bill-and-keep or zero-termination charge regime. While the decision has invited a huge backlash from Jio’s customers and competition alike, it would be interesting to closely monitor the impact of Jio’s widely unpopular decision on its financials during the coming quarter. ( Graphics by Mohammad Arshad)

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