In preparation for a possible initial public offering (IPO) in late 2025, Reliance Jio is expanding its 5G-based fixed wireless access (FWA) service, Jio AirFiber, with the goal of onboarding one million users every 30 days.
The goal of the vigorous campaign for AirFiber is to increase Jio’s average revenue per user (ARPU) and raise its valuation in preparation for what may be the biggest initial public offering (IPO) in India.
Jio Expands Its 5G Based Fixed Wireless Access Ahead of 2025 IPO
According to a CLSA analysis, Jio’s emphasis on AirFiber will thrill investors and raise its market value as it gets ready to go public.
Jio had 2.8 million AirFiber users by September 2024, and an expanded distribution network and improved onboarding procedures were expected to attract 1.9 million more broadband users in the December 2024 quarter.
A key component of Jio’s 5G monetisation initiatives, Jio AirFiber yields an ARPU of ₹650–700 per month, which is more than three times more than the ₹195 ARPU for mobile broadband in Q2FY25.
In addition to the mobile broadband tariff increases that were implemented in July 2024 and are anticipated to have a financial impact by Q4FY25 and Q1FY26, the growth of AirFiber’s high-ARPU user base is anticipated to accelerate revenue growth.
Although the entire impact will take years to manifest, Jio’s 5G monetisation has been slower than anticipated, with mid-2024 pricing spikes forcing customers to switch to higher-value contracts.
According to CLSA, Jio’s operational income (EBITDA) will increase by 40% to ₹87,600 crore by FY27, mostly due to subscriber additions and ARPU growth, which is expected to reach ₹230 by that year.
Jio Platforms Is Worth $98 Billion
According to valuation company Sanford C. Bernstein, Jio Platforms Ltd. (JPL) is worth $98 billion. Its initial public offering (IPO) is expected to collect about 42,100 crore, making it the largest IPO in India.
According to current standards, companies worth more than ₹1 trillion must sell at least 5% of their interest during the initial public offering (IPO); Jio’s IPO would surpass Hyundai India’s 2023 sale of ₹27,856 crore.
Mukesh Ambani’s Reliance Industries controls 66.5% of JPL, while private equity companies own 16% and strategic investors Meta and Google own 17.7% of the company combined. In 2020, JPL raised ₹1.52 trillion from investors, proving its dominance in the market.
According to Sanford C. Bernstein, Jio’s revenue is anticipated to increase at a compound annual growth rate (CAGR) of 17% over the next three years, with a 14% increase in ARPU by FY26. By that time, Jio is anticipated to account for 48% of industry revenue.
Jio is a prominent participant in digital connectivity and a leader in India’s telecom market thanks to its $25 billion investment in 5G spectrum and infrastructure.
In line with worldwide trends where FWA is a crucial part of 5G monetisation, Jio is utilising AirFiber to offer premium services to residential and corporate consumers.
Even though AirFiber has a lot of potential for profit, growing its business and keeping customers happy in a cutthroat industry are still difficult tasks.
Increased Demand for 5G Services
The increased demand for 5G services in India’s quickly evolving telecom sector is in line with Jio’s strategic investments in enterprise solutions, IoT connectivity, and smart homes.
Reliance Jio made a strategic decision to raise its valuation prior to its IPO by concentrating on high-ARPU services, subscriber growth, and 5G monetisation.
The planned IPO is predicted to be a historic occasion that would draw interest from investors worldwide and redefine standards for Indian telecom and digital enterprises.
As Jio gets ready for its IPO, investor confidence will be greatly influenced by its capacity to carry out its AirFiber strategy and meet aggressive growth goals.
