Reliance Jio Overtakes Chinese Reival To Become Top Mobile Operator By Data Traffic

Reliance Jio, India’s leading telecom operator, has now clinched the title of the world's largest mobile operator in data traffic consumption, surpassing China Mobile. The total data traffic on Jio's network has surged to 40.9 Exabytes during the January-March quarter, as per findings from global analytics firm Tefficient, leaving China Mobile behind at 38 Exabytes. 

Jio has also secured the second-largest 5G subscriber base globally, boasting 108 million users. The company disclosed in its analyst presentation that over 28 per cent of its total wireless data traffic is attributed to 5G users. 

The surge in user base, particularly driven by the addition of JioBharat phone users and enticing unlimited 5G promotional plans, has also impacted Jio’s average revenue per user (ARPU). 

Analysts anticipate a 20-25 per cent increase in tariffs post the upcoming general elections, slated to conclude in early June, according to a media report. Jio's robust pace of user additions and subsequent market share gains are expected to translate into revenue growth once tariff revisions are implemented. 

Moreover, Jio's AirFiber, its fixed wireless home broadband offering, has witnessed robust demand across 5,900 towns, leading to a record number of quarterly home connections. The average daily data usage for AirFiber subscribers stands at 13 Gigabytes, marking a 30 per cent increase compared to JioFiber subscribers. 

However, despite achieving record-high numbers, Jio's ARPUs have remained stagnant for three consecutive quarters, primarily due to the addition of low-value JioBharat phone users and the impact of promotional unlimited 5G plans. Approximately 30 per cent of Jio’s network usage is currently offered free of cost owing to its unmetred 5G plans. 

By the end of the fiscal year 2024, Jio's total subscriber base has expanded from 449 million to 482 million, with an average data consumption of 28.7 GB per user per month. However, the ARPU remains unchanged at Rs 182, compared to Rs 181 at the beginning of the year. 

In contrast, Bharti Airtel, despite witnessing lower data usage or subscriber additions, has maintained an upward trend in revenue. Its user base has grown from 339 million to an estimated 350 million in FY24, with ARPUs rising from Rs 200 to an estimated Rs 211. 

Analysts emphasise the importance of increasing headline tariffs for all industry players to effectively monetise 5G services. For Jio, the market share gains are expected to be a sign of revenue conversion in the near term, especially with anticipated tariff hikes.