Price-warrior Jio’s reality check: Telco likely to face pressure on key metrics in Q1 earnings
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Chairman and managing director of Reliance Industries, Mukesh Ambani, attends the India Mobile Congress in New Delhi, on September 27, 2017.
Synopsis
Jio is likely to post strong subscriber growth in the first quarter but Arpu could slide and profit growth may continue to be under pressure as the telecom disruptor targets rural India. Future growth will hinge on its pricing strategy and content-monetisation plans.
Telecom’s massive disruptor continues to add subscribers at a rapid clip, closing in on Airtel and Vodafone Idea. But Jio’s manic pace could ease out soon in a saturating market. In the quarter ended March 2019, Reliance Jio was the biggest gainer in net subscribers, according to Telecom Regulatory Authority of India (TRAI) data. It added nearly 27 million subscribers while Airtel and Vodafone Idea lost around 15 million and 24 million,
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