Reliance Jio has surpassed China Mobile to become the world’s largest mobile operator in data traffic consumption, according to a report by global analytics firm Tefficient. With impressive 5G adoption rates and rapid user additions, Jio continues to strengthen its position in the telecom industry.
Dominance in Data Traffic: In the January-March quarter, Jio’s total data traffic reached 40.9 exabytes, outpacing China Mobile’s 38 exabytes. Additionally, Jio boasts the second-largest 5G subscriber base globally, with 108 million users. Over 28% of its wireless data traffic is attributed to 5G users.
Factors Driving Growth: Jio attributes its robust performance to the increasing adoption of JioBharat phones and the popularity of its unlimited 5G promotional plans. However, the company’s average revenue per user (ARPU) remains stagnant at Rs 182 due to the impact of low-value users and promotional plans.
Market Share Gains and Revenue Prospects: Analysts predict that Jio’s market share gains and rapid user additions will lead to increased revenue conversion, particularly after tariff hikes following general elections. Despite its strong performance, Jio’s ARPU has not seen significant growth, emphasizing the need for monetizing 5G services.
Expansion into Home Broadband: Jio’s fixed wireless home broadband offering, AirFiber, has witnessed substantial demand across 5,900 towns, resulting in record-high quarterly home connections. AirFiber subscribers exhibit an average daily data usage of 13 gigabytes, reflecting a 30% increase compared to JioFiber subscribers.
Challenges and Opportunities: While Jio continues to dominate in data consumption and 5G adoption, challenges remain in monetizing its services and increasing ARPU. Analysts suggest that increasing headline tariffs are essential for telecom companies to capitalize on the opportunities presented by 5G services.
Conclusion: Reliance Jio’s ascendancy in data consumption and 5G adoption underscores its pivotal role in the global telecom landscape. As the company navigates through challenges related to ARPU growth and monetization, its focus on expanding services and leveraging market opportunities will be crucial for sustained success.
